Nigeria’s Central Bank Cut a Rate Its Market Was Pushing Higher

NIGERIA · MARKETS

Key Facts

—The clearing rate: One-year treasury bills cleared at 17.15 percent at the auction held on 26 August, down 44 basis points from 17.59 percent. The true yield works out at 20.70 percent.

—The demand: Bids for the one-year paper reached N3.63 trillion (about US$2.71 billion at the official rate of roughly 1,340 naira to the dollar) against N500 billion (about US$373 million) on offer. The central bank allotted N638.19 billion (about US$476 million).

—The short end: The 91-day bill was allotted at an unchanged 16.30 percent. The 182-day bill was undersubscribed, drawing N52.93 billion (about US$39.5 million) against N100 billion (about US$74.6 million) offered.