The National Bank of Rwanda (BNR) will today auction two treasury bills worth Rwf5 billion as means of monetary policy implementation.
This means that Government will borrow the Rwf5 billion from the public on a short-term basis in what the Central Bank Deputy Governor, Ambassador Clever Gatete, said was a practice done almost every week depending on the liquidity condition in the economy.
The Rwf4 billion negotiable treasury bills carry 28 days maturity period renewable expiring on August 12, 2010 while another negotiable treasury bills worth Rwf1 billion has got 91 days maturity period renewable and it will expire on October 14, 2010.
“The competitive bids will be considered according to the lowest rate offered and the amounts to be distributed will be considered on the basis of the bids received,” the Central Bank said in a statement.
The Bank said that non competitive bids will be served at the weighted average rates resulting from competitive bids.
Bidding will be done electronically not latter than 10:00 am today while auction results will be communicated today at 3:00 pm as settlement will take place tomorrow by debiting the successful bidder’s account.