As part of efforts to support economic recovery and deepen the financial market, the Central Bank of Nigeria has introduced special bills.
It explained that the features of the special bills include tenor of 90 days, zero coupon, applicable yield at issuance to be determined by the CBN; the instrument will be tradable amongst banks, retail and institutional investors. Speaking in separate interviews with THISDAY, they stated that the new policy would enhance liquidity in the forex market.
Also, the Senior Economist/Head of Research and Strategy, Greenwich Merchant Bank Limited, Mr. Ayodeji Ebo, described the new policy as a positive move, saying it will help divert remittances back to the official channels.“I think it will also increase dollar liquidity in the banks as people would now be more comfortable to channel these funds through the banks. So, it is a step in the positive direction,” he stated.
“So, because of the difference, you would find a way to cut off the official channel and start receiving the money through informal channels, instead of through the banks.“What the central bank would achieve with this policy is to reduce the pressure and cut off the arbitrage with more retail investors being able to access their dollars through the right channels.
“Those can actually, to a large extent, save the central bank a lot of headaches if we are able to cement the structure around remittances. So, I think it is a brilliant move,” he said.