The Central Bank of Nigeria (CBN) has removed restrictions that previously prevented financial institutions participating in the Nigerian Foreign Exchange Market (NFEM) and primary auctions of government securities from accessing its Discount Window.
The policy change is expected to improve liquidity management and enhance the efficiency of the financial system. By lifting the restrictions, the CBN aims to give eligible institutions greater flexibility in managing their short-term funding needs.
The Discount Window is a key facility through which the apex bank provides liquidity support to banks and other financial institutions. The previous restrictions had limited access for players active in the foreign exchange market and government securities auctions.
Market operators have welcomed the development, describing it as a positive step toward a more inclusive and functional monetary policy framework. The move is also expected to support smoother operations in both the foreign exchange and fixed-income markets.
This latest decision forms part of ongoing efforts by the Central Bank to refine its monetary policy tools and strengthen the overall stability of the Nigerian financial system.
