CBN eases borrowing rules for banks in FX and securities markets
The Central Bank of Nigeria (CBN) has announced significant changes to its borrowing and liquidity management rules for banks. The new framework removes previous restrictions on banks accessing the CBN’s Discount Window after participating in foreign exchange and government securities auctions. The changes, detailed in a recent circular, also reopen tenored repurchase operations and expand access to Open Market Operations (OMO) for a wider range of investors. The move aims to improve liquidity management and enhance the functioning of Nigeria’s money market.
What we know
- The CBN removed restrictions preventing banks involved in foreign exchange and government securities auctions from accessing its Discount Window.
- A circular dated August 12, 2026 outlined these changes and was signed by Acting Director Okey Umeano.
- The suspension on tenored repurchase (repo) operations has been lifted, allowing repos with terms from 4 to 90 days.
- Participation in OMO auctions is now open to all eligible investors, including individuals, companies, and non-bank financial institutions, via deposit money banks.
- The restriction remains that banks accessing the Discount Window cannot participate in OMO auctions on the same day.
