CBN mops up Naira through Treasury bills before new forex trading

The Central Bank of Nigeria (CBN) sold long-dated Treasury bills at higher yields than the secondary market to mop up naira liquidity before commencement of today’s interbank currency trading, traders said at the weekend.

The CBN sold 205.9 billion naira worth of one-year bills on Friday at 13.5 percent, compared with the secondary market which is currently trading at 10.81 percent, in order to curb speculation.

The excess liquidity prompted the central bank to sell 205.9 billion naira ($1.03 billion) worth of one-year bills on Friday at 13.5 percent, compared with the secondary market rate of 10.81 percent, traders said. The bank had offered 78 billion naira in bills on Thursday.