CBN Plans N1.35 Trillion Liquidity Withdrawal in July

The Central Bank of Nigeria (CBN) has unveiled a plan to withdraw approximately N1.35 trillion in liquidity from the banking system in July 2023. This will be achieved through the issuance of N2 trillion worth of treasury bills, marking the largest monthly issuance for the year.

The CBN's program includes the maturity of N647.79 billion in existing treasury bills during the month. The first auction is scheduled for July 8, where the CBN will offer N700 billion across three tenors: N100 billion for 91-day bills, N100 billion for 182-day bills, and N500 billion for 364-day bills.

The subsequent auctions will take place on July 15 and July 29, with offers of N600 billion and N700 billion, respectively. The CBN aims to raise N5.8 trillion from July to September against maturities of N2.64 trillion, indicating a net new borrowing of N3.16 trillion.

The auction rates for the treasury bills remain unchanged from previous sales, with the CBN using treasury bills as a key monetary policy instrument to manage liquidity and curb inflation.