National Bank of Ethiopia to begin weekly auctions of Treasury Bills in December

What the heck is a Treasury Bill anyway ?
Ethiopia will introduce a one-year treasury bill and begin weekly auctions in December, the government said in a letter to the International Monetary Fund.

 The Horn of Africa nation is planning the sales “to refine our liquidity management capability,” according to the letter, which was signed by Finance Minister Sufian Ahmed and central bank Governor Teklewold Atnafu.

 Treasury bill auctions are held sporadically and the notes are sold in durations of 28, 91 and 182 days. State-owned commercial banks are the main buyers of the notes, which had an average weighted yield of 0.778 percent in the last three months of 2009, the latest period of data available, according to the National Bank of Ethiopia’s website. Read more