Central Bank of Nigeria (CBN) has introduced Special Bills as part of its efforts to deepen the country’s financial market.
The development announced, Thursday, seeks to also avail the bank with an additional regulatory tool.
According to CBN, the features of the CBN Special Bills are as follows: “Tenor of 90 days; Zero coupon, applicable yield at issuance will be determined by the CBN; The instrument will be tradable amongst 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; and 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.
Meanwhile, the CBN, Wednesday, also unveiled amended procedures of Diaspora remittances, which requested all International Money Transfer Operators (IMTO) to ensure that all funds in favour of beneficiaries/recipients in Nigeria be deposited into the naira correspondent account.
“Further to the Circular Ref. No. TED/FEM/FPC/GEN/01/011 of November 30, 2020, on the above subject, we wish to reiterate and clarify to All International Money Transfer Operators (IMTO) the following;
“IMTO’s must ensure that all funds in favour of beneficiaries/recipients in Nigeria be deposited into the Agent Banks’ correspondent account.
“Agent Banks (Deposit Money Banks) in Nigeria will be responsible for final payment to beneficiaries/recipients either in foreign currency cash (USD) or into the beneficiaries’/recipients’ domiciliary account in Nigeria.
“The mode of payment either in cash or transfer is at the sole discretion of the beneficiaries/recipients.
Please ensure strict compliance and be guided accordingly,” the CBN detailed.