By Omodele Adigun and Uche Usim, Abuja
As part of efforts to deepen the financial markets and as well avail the monetary authority additional liquidity management tool, the Central Bank of Nigeria (CBN) yesterday announced the introduction of Special Bills into the market.
According to the bank’s Director of Banking Supervision, Bello Hassan, the introduction of the bills became necessary “in order to ensure optimal regulation of systemic liquidity and promote efficient financial markets in support of economic recovery and sustained growth.”
He explained that the features of the CBN Special Bills include tenor of 90 days; zero coupon, applicable yield at issuance which will be determined by the CBN.
He added that “the instrument will be tradable among banks, retail and institutional investors and shall not be accepted for repurchase agreement transactions with the CBN and shall not be discountable at the CBN window.
Its other feature is that it will qualify as liquid assets in the computation of liquidity ratio for deposit money banks.”
The apex bank on Monday introduced new rules that would allow beneficiaries of Diaspora remittances and transfers into domiciliary accounts to receive their money in foreign currency.
Announcing the policy change, its Director, Trade and Exchange Department, Dr. O Nnaji, said the new rules were to liberalise, simplify and improve the receipt and administration of Diaspora remittances into Nigeria, as well as to ensure the stability of the foreign exchange market.
He said the removal was also consequent on the improved capabilities of the apex bank to monitor transactions, forestall money laundering and prevent the adverse effect of dollarisation in the economy.
He stated this in two circulars to authorised dealers and the general public, titled, “Amendment to procedures for Receipt Of Diaspora Remittance”, and Operations of Domiciliary Account.