The Central Bank of Nigeria (CBN) has introduced Special Bills, which the apex bank said will deepen the financial markets. The bill will have 90Days tenor, issued at zero-coupon and tradeable among banks.
CBN disclosed this on Wednesday in a circular – BSD/DlR/GEN/LAB/131086 titled – INTRODUCTION OF CENTRAL BANK OF NIGERIA SPECIAL BILLS.
The circular reads “The Central Bank of 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.
“The CBN will continue to ensure optimal regulation of systemic liquidity and promote efficient financial markets in support of economic recovery and sustained growth.”
By: Ifunanya Ikueze