CBN Spends N577.46bn to Battle Inflation In H1 2017

Central Bank of Nigeria, CBN, spent N577.46 billion to stem the tide of spiralling inflation in the first six months of 2017.

Also, the apex bank spent another $7.6 billion to reign in free falling naira, which exchanged for over N500 per one American dollar early the year under review.

It equally came to light that it cost Federal Government N687.3 billion to service its N11.8 trillion domestic debts during the period.

In its first half 2017 Financial Markets Department, FMD, report, the bank noted that “the cost of liquidity management amounted to N577.46 billion compared to N122.99 billion in the corresponding period of 2016.

From a high of 18.72 percent in January 2017, inflation fell to 17.78 in February and ended the first half of the year at 16.1 percent.

“The increased transactions during the review period were attributable to the greater monetary tightening stance that resulted in increased number of auctions.

“In addition, CBN Bills maturities and the monthly disbursements to the three tiers of government by the Federation Account Allocation Committee, FAAC.

CBN Bills that were offered amounted to N3,702.96 billion, while total public subscription and sale amounted to N4,593.93 billion and N3,871.27 billion, respectively.

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