CBN announces removal of restrictions on Discount Window access for FX, OMO

The Central Bank of Nigeria, CBN has reviewed its Discount Window restrictions and the framework governing participation in Open Market Operations, OMO.

This was disclosed in a circular signed by the apex bank’s Acting Director of the Financial Markets Department, Okey Umeano, on Wednesday.

With the latest review, the CBN said the existing restriction on participation in OMO auctions by institutions accessing the Discount Window on the same day will remain in force.

However, it removed the foreign exchange (FX) transaction restrictions on access to the Discount Window arising from participation in the Nigerian Foreign Exchange Market, NFEM and primary auctions of government securities.

The apex bank further said the suspension of tenored Repurchase (Repo) transactions has been lifted.

The CBN noted that the review takes effect immediately.

“The Central Bank of Nigeria, CBN has reviewed existing market practices and developments in the foreign exchange, money, and fixed-income markets. The Bank has also reviewed the framework governing access to the Standing Lending Facility (SLF), Tenored Repo Operations and participation in Open Market Operations (OMO),” the CBN stated.