The Central Bank of Nigeria (CBN) will this week mop up N245 billion from the interbank money market in a bid to reduce money supply in the economy.
This will be achieved through sales of government securities (treasury bills)
The apex bank plans to sell N45.1 billion worth of 91 days bills, N80 billion worth of 182 days bills and N120 billion worth of 364 days bills.
Cost of funds in the interbank money market fell by more than 50 percent last week due to inflow of N315 billion which increased the amount of idle funds in the market.
As a result of this, market liquidity rose from minus N700 million the previous week to N433 billion at the close of business on Friday.
The liquidity increase also triggered excess demand for treasury bills (TBs), with investors demanding for N249 billion worth of bills as against N120 billion worth of bills offered by the CBN.
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