The Central Bank of Nigeria has said it has introduced special bills as part of efforts to deepen the financial markets and avail the monetary authority with an additional liquidity management tool.
It said this in a circular on, “Introduction of Central Bank of Nigeria special bills, signed by the Director of Banking Supervision, Bello Hassan.
Part of the circular read, “The features of the CBN special bills are as follows: a tenor of 90 days; zero coupon, applicable yield at issuance will be determined by the CBN;
“The instrument will be tradable among 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.”
