The Central Bank of Nigeria (CBN) has removed restrictions that previously prevented banks using its Standing Lending Facility (SLF) from participating in government securities auctions and the foreign exchange market.

The new rules, effective immediately, allow banks that access the CBN’s discount window to continue trading in the Nigerian Foreign Exchange Market (NFEM) and participating in primary government securities auctions.

Despite this , banks that use the facility will still be barred from taking part in Open Market Operations (OMO) auctions on the same day.

The CBN also expanded OMO participation to eligible investors, including individuals, companies and non-bank financial institutions, through Deposit Money Banks.

The apex bank said the changes will give financial institutions greater flexibility in managing liquidity, improve market operations and strengthen the effectiveness of monetary policy.

Banks, authorised dealers and other market participants must comply with the revised guidelines.