The Central Bank of Nigeria has successfully sold a record-breaking N1.3 trillion in Treasury Bills, with a targeted focus on attracting overseas investors.
The objective behind this substantial sale is to augment the influx of foreign exchange (forex) into Nigeria and fortify the value of the Naira. Treasury Bills, known for their security and ability to offer investors a steady return on investment, are currently offering enticing interest rates. By enticing foreign investors to purchase these T-Bills, the CBN aims to infuse much-needed dollars into the economy, thereby aiding in the stabilization and potential reduction of the exchange rate.
According to reports from The Nation, investors submitted bids amounting to N1.5 trillion, surpassing the N312.9 billion initially offered by the CBN. Consequently, the apex bank awarded N1.3 trillion in T-Bills at an interest rate of 21.49 percent.
The proceeds from this substantial sale will be utilized by the CBN to intervene in the forex market, primarily by purchasing dollars and selling Naira. This heightened supply of dollars is anticipated to contribute to a decrease in the exchange rate, which currently stands at approximately N1,600 per dollar.
