The Central Bank of Nigeria (CBN) yesterday said that it will issue special treasury bills today to mop up N200 billion from the banking system in order to further rein in inflation. Meanwhile the naira remained stable at N364 per dollar in the parallel market.
Acting Director, Corporate Communication Department, Mr. Isaac Okoroafor disclosed this yesterday. He said: "The CBN plans to mop up a total of N200.322 billion from the Nigerian banking system through a special Open Market Operation (OMO) at the rate of 16 per cent per annum. The decision to mop up liquidity was in reaction to the maturity of N206 billion on Thursday, June 15, 2017."
He further explained that the apex Bank decided on the rate of 16% per annum due to the falling rate of inflation, which he noted will continue to fall.
It will be recalled that the Bank on Monday, June 12, 2017 released its Treasury Bills Issue Programme for the third quarter of 2017 in which it disclosed that the maturity dates for the various tenors will be June 15, June 22, July 6, July 20, August 3, August 17 and August 31, 2017, respectively.