BY EMEKA EJERE
The Central Bank of Nigeria (CBN) has introduced special bills as part of efforts to support economic recovery and deepen the financial market,
The 90-day special bills are expected to avail the monetary authority additional liquidity management tool.
The CBN stated this in a circular addressed to all banks, dated December 1, 2020, signed by its Director, Banking Supervision, Mr. Bello Hassan, a copy of which was obtained by THISDAY yesterday.
According to the circular, the features of the special bills include tenor of 90 days, zero coupon, applicable yield at issuance to be determined by the CBN; the instrument will be tradable amongst banks, retail and institutional investors.
Also, it stated that 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.
“The CBN will continue to ensure optimal regulation of systemic liquidity and promote efficient financial markets in support of economic recovery and sustained growth,” it added.