Nigeria plans to issue 229.14 billion naira ($728.59 mln) in Treasury bills at an auction on Aug. 2, the central bank said on Wednesday after the government injected monthly budgetary allocations to states and local government into the system on Tuesday.
The bank said it will issue 29.14 billion naira in three-month bills, 80 billion in six-month paper and 120 billion in one-year bills.
Nigeria's central bank issues Treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and to help lenders manage their liquidity.
The bill comes after the government disbursed budget allocation to its agencies, prompting the central bank to mop up excess liquidity.
Nigeria released 652.2 billion naira late on Tuesday to its three tiers of government - federal, states and local - as their June budget disbursement.
Wednesday, 26 July 2017
Nigeria to issue 229 bln naira Treasury bill after budget cash injection
The central bank has been battling to mop-up excess liquidity from the banking system in a bid to curb pressure on the local currency.
© Reuters News
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