Business, Featured
By Anayo Ezugwu
AS part of efforts to deepen the financial markets in Nigeria, the Central Bank of Nigeria, CBN, has announced the introduction of special bills. The bills will avail the monetary authority with an additional liquidity management tool.
The CBN in a letter with serial number BSD/DIR/GEN/LAB/131086, said it would continue to ensure optimal regulation of systemic liquidity and promote efficient financial markets in support of economic recovery and sustained growth. The letter signed by Bello Hassan, director, banking supervision, CBN, said the special bills would have a tenor of 90 days.
Hassan listed other features of the bills to include zero-coupon, applicable yield at issuance will be determined by the CBN. “The Central Bank at Nigeria, CBN, hereby announces the introduction of Special Bills as part of efforts to deepen the financial markets and avail the monetary authority with an additional liquidity management tool. “The features of the CBN Special Bills are as follows: Tenor of 90 days.
“Zero-coupon, applicable yield at issuance will be determined by the CBN. The instrument will be tradable amongst banks, retail, and institutional investors. The instrument shall not be accepted for repurchase agreement transactions with the CBN and shall not be discountable at the CBN window. The instrument will qualify as liquid assets in the computation of liquidity ratio for deposit money banks,” he said.
– Dec. 2, 2020 @ 14:25 GMT |
Tags: CBN introduces special bills to deepen financial markets
