The Central Bank of Nigeria (CBN) has updated its policies concerning the Discount Window and the guidelines for Open Market Operations (OMO). A circular issued on Wednesday by Okey Umeano, the Acting Director of the Financial Markets Department, confirmed these adjustments.
Under the new policy, the CBN maintains its ban on institutions taking part in OMO auctions if they have accessed the Discount Window on the same day. However, the bank has eliminated previous limits on accessing the Discount Window following involvement in the Nigerian Foreign Exchange Market (NFEM) or primary government security auctions.
Furthermore, the regulator has authorized the resumption of tenored Repurchase (Repo) transactions. These changes are effective immediately. The CBN stated that this decision follows a comprehensive assessment of current trends within the money, fixed-income, and foreign exchange markets, as well as an evaluation of the framework governing the Standing Lending Facility and other repo operations.
