RateCaptain
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
Subscribe
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
RateCaptain
No Result
View All Result
Home Banking

CBN’s September 2022 treasury bills rate jumps 12% after MPR hiked

Rate Captain by Rate Captain
October 7, 2022
in Banking
Reading Time: 2 mins read
A A
0
Central Bank not under compulsion to provide dollars for flight ticket proceeds, says Governor
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

Nigeria’s Central Bank one-year treasury Bills rate for the month of September 2022 rose to 12% from 8.5% recorded in the previous month, one day after the apex bank raised the benchmark interest rate to 15.5%.

According to the result of the auction seen by Nairametrics, the Central Bank offered to raise a total of N108.71 billion for the one-year treasury and recorded a total subscription of N233.32 billion, representing an oversubscription of 114.6%.

AlsoRead

Banks Non-Performing Loans hits N1.5 Trillion, Central Bank Reports

Bank of Japan Maintains Ultra-Loose Monetary Policy Amid High Uncertainty

Court Orders Credit Suisse Unit to Pay $743 Million to Georgian Billionaire Bidzina Ivanishvili

Meanwhile, only N173.81 billion was allotted by the apex bank, which is 59.9% higher than the intended offer of N108.71 billion. The Central Bank during the 287th MPC meeting raised the monetary policy rate for the third consecutive meeting to its highest level in two decades.

In a bid to tame the rising inflationary pressure in the country, the CBN raised the MPR by 150 basis points to 15.5% on Tuesday, 27th September 2022, immediately triggering a 350-basis points uptick in the one-year treasury bills.

The rate change by the apex bank was necessary given growing inflationary pressure in the country as Nigeria’s headline inflation accelerated to a 17-year high of 20.52% in August 2022. It is however worth noting that despite the significant improvement in the t-bills rate, it produced a negative yield of 8.52%.

The Monetary Policy Committee of the CBN voted unanimously to raise the Monetary Policy Rate (MPR) and the Cash Reserve Requirement (CRR). Notably, the apex bank raised the MPR to 15.5% and the CRR to a minimum of 32.5%.

The CBN noted that the tight policy stance would help consolidate the impact of the last two policy rate hikes, which is already reflected in the slowing growth rate of the money supply in the economy.

It also felt that an aggressive rate hike would slow capital outflows and likely attract capital inflows and appreciate the naira.

Meanwhile, the oversubscription of the 364-day treasury bill (NTB) indicates investors’ positive sentiments towards long-term securities, despite the real negative returns. It is also worth adding that the 12% rate for the one-year treasury bills is the highest since October 2019, when the stop rate stood at 12.94%.

The shorter tenor assets were unattractive to investors in September as seen by the under subscription recorded in both the 91-day and 182-day treasury bills, the same as recorded in the previous month.

Previous Post

NBS to provide data to help tackle insecurity in Nigeria- Statistician-General

Next Post

Afreximbank debuts AfPAY to facilitate international trade


Related News

Banks Non-Performing Loans hits N1.5 Trillion, Central Bank Reports

Banks Non-Performing Loans hits N1.5 Trillion, Central Bank Reports

by Stephen Akudike
September 29, 2023
0

Banks in Nigeria have been actively writing off debts and debiting accounts of non-cooperative debtors from other banks, in a...

Bank of Japan Maintains Ultra-Loose Monetary Policy Amid High Uncertainty

Bank of Japan Maintains Ultra-Loose Monetary Policy Amid High Uncertainty

by Victoria Attah
September 22, 2023
0

The Bank of Japan (BOJ) has chosen to maintain its ultra-loose monetary policy and keep interest rates unchanged, reflecting its...

Court Orders Credit Suisse Unit to Pay $743 Million to Georgian Billionaire Bidzina Ivanishvili

Court Orders Credit Suisse Unit to Pay $743 Million to Georgian Billionaire Bidzina Ivanishvili

by Victoria Attah
September 20, 2023
0

In a significant legal ruling, a Singapore court has ordered a unit of Credit Suisse to pay Georgian billionaire and...

Concerns Arise as CBN Initiates Loan Recovery from COVID-19 Beneficiaries

Market Alight with Optimism: New CBN Governor Nomination Ignites Investor Frenzy and Stock Surge

by Stephen Akudike
September 18, 2023
0

In a recent development, President Bola Tinubu nominated Dr. Olayemi Michael Cardoso to serve as the new Governor of the...

Next Post
Afreximbank debuts AfPAY to facilitate  international trade


Afreximbank debuts AfPAY to facilitate international trade


Leave a Reply Cancel reply

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

Recommended

Naira Depreciates to N945/$ in the Parallel Market

CBN To Reduce Number of BDC’s – FG

September 29, 2023
Binance Withdraws from Russian Market

Binance Withdraws from Russian Market

September 29, 2023

Popular Story

  • Naira Depreciates to N945/$ in the Parallel Market

    CBN To Reduce Number of BDC’s – FG

    0 shares
    Share 0 Tweet 0
  • Seplat Energy Nigeria Offers Internship Opportunity to Nigerian Undergraduate Students.

    0 shares
    Share 0 Tweet 0
  • Shocking: “Undress” An AI Tool That Unveils Digital Representations of Individuals Without Clothing

    0 shares
    Share 0 Tweet 0
  • FirstBank Technology Academy Opens Application For Young Graduates to Explore Tech Careers.

    0 shares
    Share 0 Tweet 0
  • Microsoft introduces AI-powered Bing to Android and iOS users. 

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Cookie Policy
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

RateCaptain
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
?>