The Central Bank of Nigeria has announced that it has introduced a “special bills” as part of its efforts to deepen the financial markets and avail the monetary authority with an additional liquidity management tool.
It said this in a circular on, “Introduction of Central Bank of Nigeria special bills, signed by the Director of Banking Supervision, Bello Hassan.
Part of the circular read, “The features of the CBN special bills are as follows:
- A tenor of 90 days;
- It comes with zero coupon, applicable yield at issuance will be determined by the CBN;
- The instrument will be tradable among 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.”
The Special Bills is in line with the CBN’s goal of ensuring optimal regulation of systemic liquidity and promoting efficient financial markets in support of economic recovery and sustained growth.