December 1, 2020/CBN

The Central Bank of Nigeria (CBN) on November 30, 2020 approved the release of the excess above regulatory minimum Cash Reserve Requirement (CRR) of banks. This is part of measures to improve liquidity and support economic recovery through increased extension of Credit facilities to the real sector.

This will be accomplished through the issuance of CBN Special Bills with the following features:

1. Tenor of 90 days, subject to rollover at the instance of the CBN;

1. Zero coupon, with an implied yield to be worked out by the CBN;

1. The instrument will be tradeable and will be discountable at the CBN window; and

1. The instrument will qualify as liquid assets.

The CBN 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.