CBN Sells
N1.3tr Treasury Bills To Strengthen Naira.
Central Bank of Nigeria has sold a record N1.3 trillion
in Treasury Bills, specifically targeting overseas investors.
This move aims to increase foreign exchange flowing into
Nigeria, ultimately strengthening the Naira’s value.
The Naira has been under pressure lately due to a lack of
forex available.
Treasury Bills, also known as T-Bills, are essentially
short-term government IOUs.
By offering attractive interest rates, the CBN is hoping
to entice foreign investors to buy these T-Bills.
This injects much-needed dollars into the economy, which
helps stabilise and potentially lower the exchange rate.
The high demand for these T-Bills is a positive sign.
These funds will be used by the CBN to intervene in the
forex market, buying dollars and selling Naira.
This increased supply of dollars should help bring the
exchange rate down from its current high of around N1, 500 to a dollar.
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