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.
09-61638445 09-61638455 (Fax) CENTRAL BANK OF NIGERIA Central Business District P.M.B. 0187 Garki, Abuja October 8, 2008 BOD/DIR/CIR/2008/GEN/3/15 CIRCULAR TO ALL BANKS AND DISCOUNT HOUSES
Expansion Of The Tenor Of Cbn Repo
Following a review of recent developments in the financial market, especially the current liquidity crunch, the CBN hereby expands the tenor of repo instruments at the CBN window from 1-7 days to 1 - 360 days. The repo operations would continue to be in treasury securities i.e. Treasury Bills and Bonds issued by the Federal Government. The expansion will afford all CBN counterparties the opportunity to access relatively long term funds from the CBN window with the prescribed eligibility securities.
The CBN shall provide the repo facility for the different tenors at rates specified below.
The rates would however be subject to review depending on prevailing market conditions.
| REPO RATES FOR CBN DISCOUNT WINDOWS | |
|---|---|
| 1-3 days | MPR |
| 4-7 days | MPR Plus 25 bps |
| 30 days | MPR plus 125 bps |
| 60 days | MPR plus 175 bps |
| 90 days | MPR plus 195 bps |
| 180 days | MPR plus 300 bps |
| 360 days | MPR plus 400 bps |
Thank you.
ames K.A. Olekah Director, Banking Operations Dept.