In a worrying sign of financial instability, the Central Bank’s recent auction of 180 billion treasury bills failed to attract any buyers. Despite offering high interest rates exceeding ten percent, the auction saw no bids, highlighting growing concerns over political uncertainty ahead of the upcoming presidential election.
The absence of buyers underscores the market’s fear of potential instability, which has compounded the government’s financial challenges. With the International Monetary Fund’s restrictions on money printing, the Central Bank faces tough choices to manage ongoing public expenditure.
To address the shortfall, the government may need to explore alternative measures, such as increasing foreign borrowing, raising taxes, or even selling off government assets. The current situation reflects a critical juncture for fiscal policy amid a turbulent political landscape.
