CBN Withdraws N753.77bn from Financial System in August

The Central Bank of Nigeria (CBN) withdrew a total of about N753.77 billion from the financial system last month through the sales of treasury bills and foreign exchange currency.
FSDH said at the 91-Day Treasury  Bill (TB) auction, a total of N42.71 billion worth of securities was offered and sold to competitive bidders, while a total of N29.50 billion was sold to non- competitive bidders, bringing total offer and sale to N72.21 billion in August. The bill was 188.63 percent subscribed as N80.55 billion worth of bid was received from competitive bidders. The bill was issued at a discount rate range of 11.41 percent-11.50 percent. A total of N42.71 billion worth of matured bills was repaid into the system leading to a net outflow of N29.50 billion from this segment of the market.
At the 182-Day TB auction, a total of N90 billion worth of securities was offered and sold to competitive bidders, while a total of N47.56 billion was sold to non-competitive bidders, bringing the total offer and sale to N137.56 billion in August. The bill was 211.86 percent subscribed as N190.67 billion worth of bid was received from competitive bidders. The bill was issued at a discount rate of 12.25 percent – 12.75 percent. A total of N90 billion worth of matured bills was repaid into the system, leading to a net outflow of N47.56 billion from this segment of the market.
At the 364-Day TB auction, a total of N90 billion worth of securities was offered and sold to competitive bidders. The bill was 339.07 percent subscribed as N305.16 billion worth of bid was received from competitive bidders. The bill was issued at a discount rate of 13.08 percent. A total of N90bn worth of matured bills was repaid into the system.
At the 3-year FGN Bond (re-opening) auction with a maturity date of August 16, 2016, the CBN offered and sold a total of N35 billion during the month, while it was 230.26 percent subscribed at N80.59 billion. The bond carried a marginal rate of 13.05 percent.
At the 20-year FGN Bond auction with a maturity date of July 23, 2030, the CBN offered and sold a total of N35bn, while it was 205.31 percent subscribed at N71.86 billion. The bond carried a marginal rate of 13.49 percent.
At the Open Market Operation (OMO) transactions held in August, there was a total inflow of about N113.21 billion into the system, while there was a withdrawal of about N91.73 billion from the system. This brought about a net inflow of N21.48 billion  into this segment of the market. The transactions were traded at a discount rate range of 11.50 percent – 15 percent.
At the foreign exchange auction held in the month of August, the CBN offered a total of US$2.40 billion, down by 27.27 percent from US$3.30 billion offered in July. Of the amount offered in August, the total sale was US$2.17 billion, down by 34.30 percent from US$3.298 billion sold in July.

Leave a Reply

Your email address will not be published. Required fields are marked *