CBN Fights Inflation, Removes 200 Billion Naira From Circulation
The Central Bank of Nigeria is no longer comfortable with Nigeria’s double-digit inflation figures.
Although it dropped to 16.25% in May, the apex bank is still determined to tame shrink it to single digits.
To achieve this, the apex bank has announced plans to remove a total of 200.32 billion Naira from the banking sector.
The Acting Director, Corporate Communications Department, CBN, Isaac Okorafor, confirmed this in a statement issued on Thursday.
The statement said the amount would be mopped up through a special Open Market Operation at the rate of 16%.
Open market operation refers to the buying and selling of government securities such as bond or treasury bills in the open market to increase or reduce the amount of money in the banking system.
Okorafor explained that the apex bank decided on the rate of 16% per annum due to the falling rate of inflation, which he noted would continue.
The CBN had on Monday released its Treasury Bills Issue Programme for the third quarter of the year in which it disclosed that the maturity dates for the various tenors would be June 15, June 22, July 6, July 20, August 3, August 17 and August 31, 2017, respectively.