The Central Bank of Nigeria (CBN) plans to issue N99.93 billion worth of treasury bills with maturities ranging between three months and one year at its regular debt auction next week Wednesday.
The central bank would sell N20.64 billion in 91-day paper, N25 billion in 182-day debt and N54.29 billion in one year paper next week, using the Dutch Auction System, it said in a notice.
The CBN sells treasury bills to control inflation and the volume of liquidity in the system. Inflation fell to 7.8 per cent in October. The CBN’s objective is to maintain a single-digit inflation rate.
“In the last three years, we have had stability. From January till date, for the first time since 2008, we have had consistent stretch of inflation at single digit. We expect that by the end of this year, inflation will be under eight per cent and we will keep inflation in single-digit throughout 2014.
“The naira has been stable, between January and August, it lost 2.3 per cent of it value and everyone has been complaining that the naira lost 2.3 per cent,” the CBN Governor, Mallam Sanusi Lamido Sanusi said in a recent interview.