From Uche Usim, Abuja
The Banking Supervision Department of the Central Bank of Nigeria (CBN), on Wednesday, announced the introduction of Special Bills as part of its efforts to deepen the financial markets and avail the monetary authority with an additional liquidity management tool.
This was disclosed by Bello Hassan, the Director of Banking Supervision at the apex bank in a circular.
He listed the features of the CBN Special Bills as a 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; and that the instrument will qualify as liquid assets in the computation of liquidity ratio for deposit money banks.
Hassan added that the apex bank will continue to ensure optimal regulation of systemic liquidity and promote efficient financial markets in support of economic recovery and sustained growth.
