Regulatory Alerts2008-10-10 | BSD/DO/CIR/GEN/VOL.2/011Circular to All Banks and Discount Houses on the Extension of the Tenor of CBN Repo
The Central Bank of Nigeria (CBN) has expanded the tenor of repo instruments available at its window from 1-7 days to 1-360 days due to recent market developments and a liquidity crunch. This expansion will allow banks and discount houses to access relatively long-term funds using prescribed eligible securities. The CBN will provide these facilities for various tenors with the following interest rates: MPR for 1-3 days, MPR plus 25 bps for 4-7 days, and so on up to an MPR increase of 400 bps for a 360-day period. These rates may be subject to review based on prevailing market conditions.
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monetary