CBN LURES FOREIGN INVESTORS, RAISES N256BN THROUGH TREASURY BILLS

?The Central Bank of Nigeria (CBN) yesterday raised N256 billion in six-month treasury bills, N206 billion more than it had planned to issue, and at a higher yield of 18 per cent to soak up naira liquidity and attract foreign investors back to the country. The move has led to increase of the interbank overnight lending rate from 10 per cent to 23 percent. Traders said commercial banks were paying for treasury bill purchases and a foreign currency intervention, thereby reducing the amount of naira in the banking system. The central bank has been offering treasury bills at high rates to attract offshore flows into Nigeria, which has been hit by the fall in oil prices .