Regulatory Alerts2016-08-09 | FMD/DIR/GEN/CIR/07/005Access to the CBN Discount Window on Auction Days
The Central Bank of Nigeria has issued a circular to all authorized dealers, prohibiting their access to the discount window on auction days for CBN Bills, Nigerian Treasury Bills, and Federal Government of Nigeria Bonds. This measure is taken due to observed abuse in using the Standing Lending Facility. Any violation will result in denial of access to the said facility. Authorized dealers are also reminded that they are prohibited from the interbank foreign exchange market on the same day.
CENTRAL BANK OF NIGERIA Corporate Head Office, Plot 33, Abubakar Tafawa Balewa Way, Central Business District, Cadastral Zone, P.M.B. 0187, Garki, Abuja - F.C.T.
Website: www.cenbank.org Email: financialmarkets@cbn.gov.ng Tel: 09 462 36700, 0946236703 Ref: FMD/DIR/GEN/CIR/07/005 August 8, 2016
Circular To All Authorized Dealers
ACCESS TO THE CBN DISCOUNT WINDOW ON AUCTION DAYS In view of the observed abuse of access to the Central Bank of Nigeria (CBN) Standing Lending Facility by authorized dealers, it has become imperative that some measures be taken to redress the trend and re-define the mode of operation by authorized dealers at the window.
Thus, all authorized dealers are, henceforth, directed to refrain from accessing the discount window of the CBN on the settlement date for government securities' auctions. The securities referred to here are CBN Bills, Nigerian Treasury Bills and Federal Government of Nigeria Bonds.
All authorized dealers are hereby required to note and comply accordingly, as any violation will result in the denial of access to the CBN Standing Lending Facility.
You are reminded that authorized dealers who come to any of CBN's windows are prohibited from the interbank foreign exchange market on the same day.
Thank you. Dr. Alvan E. Ikoku Director, Financial Markets Department