By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) Friday issued a revised guideline to all Banks and Discount Houses in Nigeria on how to access the CBN’s Lending Windows and Repurchase Transactions.

This is contained in a Circular dated July 26 2012 with reference number BSD/DIR/ GEN/LWR/ 05/047 and signed by A.O Idris, for Director of Banking Supervision.

“As part of the process of unwinding the extraordinary measures introduced in the wake of the Global Financial Crisis and to ensure the effectiveness of Monetary Policy, any Bank or Discount House that obtains funds from any CBN Lending Window is not allowed to simultaneously place Funds in the Inter-Bank Market” the Circular said.

According to the CBN, Deposit Money Banks/Discount Houses that also place funds on the Inter-Bank Market are not allowed to concurrently access the Window.

The CBN said any Institution that contravenes the policy will be suspended from the Apex Bank’s Money Market Window. In addition, the Institution shall forfeit the profits it would have made on the transaction.

The CBN further affirmed that the Circular takes immediate effect and supersedes all others relating to the subject.

Nigeria’s CBN had earlier released guidelines for the conduct of repurchase transactions under its standing facilities.

Click here to download Circular