With an eye toward international investors, the Central Bank of Nigeria has auctioned a record N1.3 trillion in Treasury Bills.
The goal of this is to boost the amount of foreign exchange (forex) coming into Nigeria and improve the value of the Naira.
Attractive interest rates are available on current Treasury Bills, providing investors with a safe and secure means of earning a return on their investment. The CBN wants to sell these T-Bills to international investors.
This would assist stabilize and maybe even decrease the exchange rate by bringing much-needed money into the economy.
According to The Nation, bids from investors exceeded the N312.9 billion that the CBN had provided, with a total of N1.5 trillion. According to reports, the top bank granted N1.3 trillion in T-Bills with a 21.49 percent interest rate.
The CBN intends to utilize this money to purchase dollars and sell Naira in order to interfere in the foreign exchange market. It is anticipated that the additional dollar supply would contribute to a decline in the exchange rate from its peak of almost N1,600 to one dollar.
