The federal government plans to sell N119.92 billion ($376.22 million) in short-dated treasury bills at an auction on November 16, the Central Bank of Nigeria said on Tuesday.

A total of N32.43 billion will be sold in the three-month papers, 22.82 billion naira in six-month bills and 64.67 billion naira in one-year bills, the central bank said in a public notice. Payment for the purchases would be made on Thursday.

The government issues treasury bills to fund the budget deficit, manage banking system liquidity and curb rising inflation. The West African country’s 2016 budget deficit was estimated at 2.2 trillion naira, of which around 900 billion naira is expected to come from local borrowing.
Meanwhile the Naira fell briefly to a new low against the dollar on the official market on Tuesday but rebounded after the central bank pumped $1.5 million into the market to stabilise the battered currency, traders said.
The currency weakened to a record low of 375.50 to the dollar at 1014 GMT, according to Thomson Reuters data. The central bank later sold around $1.5 million to some commercial lenders, helping the Naira to close at the previous day’s rate of 305, traders said.
The Naira had briefly touched a rate of 365 on August 18 but quickly reversed its losses to close at 324 per dollar at the official window.
An official at trading platform FMDQ confirmed a single trade worth $10,000 had been made at a rate of 376.63 early on Tuesday but gave no further details.
The central bank said in June it would float the naira but has since kept it stable at around 305 versus the dollar via daily interventions.
Liquidity on the official market remains limited and dealers said importers seeking dollars need to go to the black market, where the local currency traded at 465 on Tuesday, slightly up from 470 a dollar previously. (Reuters)
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