03 Dec CBN introduces special bills to mop surplus funds
The Central Bank of Nigeria (CBN) has introduced special bills as part of ongoing efforts to absorb excess liquidity and deepen the financial market. It says the move will avail it with an additional liquidity management tool.
In a circular announcing the special bills, which was signed by Bello Hassan, Director of Banking Supervision, the CBN said the features of the CBN Special Bills are Tenor of 90 days; Zero coupon, applicable yield at issuance will be determined by the CBN; the instrument will be tradable among banks, retail and institutional investors; and the instrument shall not be accepted for repurchase agreement transactions with the CBN and shall not be discountable at the CBN window.
Also, the instrument will qualify as liquid assets in the computation of liquidity ratio for Deposit Money Banks (DMBs).
The CBN further noted that it would continue to ensure optimal regulation of systemic liquidity and promote efficient financial markets in support of economic recovery and sustained growth.
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