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| DMO, director general, Nwankwo |
Nigeria plans to raise a total of 200.61 billion naira in Treasury bills with maturities ranging between three months and one year on Wednesday, and in 3-year and 10-year bonds, respectively next Wednesday both central bank and the Debt Management Office (DMO) announced on Wednesday..
The central bank will issue 34.88 billion naira in 91-day bills, 30 billion naira in 182-day paper and 85.73 billion naira in the 364-day debt note, using the Dutch auction system. Results of the auction are expected to be released the following day, the regulator said in a statement.
While, the DMO will issue 25 billion naira each in the 3-year and 10-year bond at an auction.
Dealers said the 200.6 billion naira in treasury bills and bonds will leave the banking system short of liquidity and may lead to a slight fall in lending rates at the interbank market.
However, expectation are that the debt auction could attract some offshore investors, seeking a better returns from the Nigerian debt market and with its attendant foreign exchange flow to boost support for the naira.
The naira firmed against the dollar last week, strengthened to around 11 weeks high on support from dollar flows from oil companies and offshore investors buying local debt.
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