The Central Bank of Nigeria (CBN) is trending across financial, corporate, and banking media after releasing a landmark monetary policy circular signed by Acting Director of Financial Markets, Okey Umeano, removing restrictions on banks accessing its Standing Lending Facility (SLF).
Under the previous framework, financial institutions that accessed the CBN’s Discount Window (SLF) were barred from participating in the Nigerian Foreign Exchange Market (NFEM) or primary auctions for government securities on the same day.
The apex bank officially lifted these restrictions, allowing Deposit Money Banks (DMBs) to access short-term liquidity through the discount window without forfeiting their ability to trade in the FX market or purchase government bonds.
Additionally, the CBN announced two major financial market adjustments:
- Lifting the Suspension on Tenored Repo Operations: The CBN reactivated repo operations across approved tenors ranging from 4 to 90 days, giving commercial banks greater flexibility in managing short-term cash reserves.
- Broadening Open Market Operations (OMO): Participation in primary and secondary OMO markets was officially expanded to allow individual retail investors, corporate entities, and non-bank financial institutions to buy OMO bills through their respective commercial banks.
The policy shift is aimed at eliminating liquidity bottlenecks, improving interbank market efficiency, and stabilizing the naira exchange rate across domestic financial markets.
Sources: BusinessDay Nigeria, Premium Times, Channels TV, Bloomberg, Tribune Online
#CBN #DiscountWindow #ForeignExchange #Naira #MonetaryPolicy #NigeriaEconomy
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