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CBN Introduces Special Bills To Mop Up Idle Cash In Economy

The Central Bank of Nigeria (CBN) has launched a particular invoice to mop up extra liquidity (idle money) within the economic system.

Announcing the introduction of the particular payments, Bello Hassan Director of Banking Supervision Department, CBN, stated that the payments can be 90Days tenor and can be issued at zero-coupon.

He stated: “The Central Bank at Nigeria (CBN) hereby proclaims the introduction of Special Bills as a part of efforts to deepen the monetary markets and avail the financial authority with an extra liquidity administration instrument.

“The options of the CBN Special Bills are as follows: Tenor of 90 days;

Zero-coupon. relevant yield at issuance can be decided by the CBN;

“The instrument can be tradable amongst banks, retail and institutional buyers;

“The instrument shall not be accepted for repurchase settlement transactions with the CBN and shall not be discountable on the CBN window; and

“The instrument will qualify as liquid property within the computation of liquidity ratio for deposit cash 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.”

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