Index to Nigerian Newspapers

Naira Stability: Hope Rises as Treasury Bill Rate Hits 19%

Nigeria's Treasury bill yields across short, medium, and long term tenors have risen significantly as the Central Bank of Nigeria (CBN) offered higher interest rates in its bid to stem the decline of the naira. Specifically, the 364-day treasury bills stop rates rose to 19 percent per annum, compared with 11.54 percent at the last auction. In the same vein, the 182- day bills rate jumped to 18 percent compared with 7.15 percent at the previous auction while the 91-day bills rose to 12.2 percent as against five percent at the last auction. Analysts believe that the CBN hiked the rates in order to mop up liquidity, thereby tackling naira depreciation and inflationary pressures. A total of N1 trillion was on offer but it was oversubscribed as investors staked N2.3 trillion. Treasury Bills (T-Bills) are short-term financial instruments that are issued by the Central Bank of Nigeria with maturity periods ranging from three months to one year.

Chukwunyem Tony | Money market instruments—Nigeria | New Telegraph | Thursday, February 08, 2024