CBN introduces special bills to mop up idle cash in economy

Central Bank of Nigeria, CBN, has introduced a special bill to mop up excess liquidity also known as idle cash, in the economy.

Announcing the introduction of the special bills, the CBN Director of Banking Supervision Department, Bello Hassan, said the bills will be ninety days tenor and issued at zero-coupon.

Hassan said the Bills were part of efforts to deepen the financial markets and avail the monetary authority with an additional liquidity management tool.

He explained that the instrument will be tradable amongst banks, retail, and institutional investors and would neither be accepted for repurchase agreement transactions with the CBN nor discountable at the CBN window.