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  • Date Submitted: 10/06/2010 12:35 PM
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CENTRAL BANK OF NIGERIA Central Business Area District P.M.B. 0187 Garki, Abuja 09-61638445 09-61638455 (Fax) October 28, 2008 BOD/DIR/CIR/2008/GEN/3/17 TO: ALL DEPOSIT MONEY BANKS AND DISCOUNT HOUSES EXPANDED DISCOUNT WINDOW OPERATIONS In order to ensure a robust operation of the discount window and in the process provide effective and efficient guidance for the conduct of monetary operations, the Central Bank of Nigeria hereby expands its discount window operations. The key elements of the Expanded Discount Window operations include: The provision of two categories of facilities, namely; the overnight standing facility and the fixed tenor repo; The increase in the tenor of borrowing from the window from overnight to 360 days; The increase in the number of financial instruments acceptable as collateral in the Window to include non-federal government securities. The widening of the base of the financial markets from which the instruments are drawn; and The broadening of financial innovations to support the operations of the Discount Window. Details of the Guidelines on the Expanded Discount Window Operations are as contained in the attached document All operators in the money market are to be guided by the provisions in the Guidelines, and may wish to contact the undersigned if further clarifications are needed.

James K. A. Olekah Director, Banking Operations Department





FOREWORD This Guideline is issued by the Central Bank of Nigeria (CBN) in exercise of its statutory powers under section 30 of the CBN Act 2007. Under the Guidelines, the Bank hereby expands its discount window operations in order to allow more robust processes of injection and absorption of excess liquidity in the money market. The expanded discount window is introduced to admit non-federal government instruments as eligible securities. It is also to ensure that the tenor of...


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