CBN approves release of excess cash reserve requirement to improve banking liquidity

The Central bank of Nigeria (CBN) has approved the release of cash reserve requirement through the issuance of CBN Special bills. The apex bank says this measure will improve liquidity in Nigeria’s banking sector and support economic recovery through increase extension of credit facility to the real sector.

The regulator further said it will accomplish this through the issuance of CBN bills with the following features: Tenor of 90 days, subject to rollover at the instance of the CBN, Zero coupon with an implied yield to be worked out by the CBN, the instrument will be tradeable and be discountable at the CBN window and the instrument will qualify as liquid assets.

The regulator concluded by saying it will continue to monitor banks utilisation of the liquidity injection from the CRR release to ensure optimal use for transactions that support economic recovery and growth.


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