CBN Relaxes Borrowing Rules For Banks Trading FX, Securities

The Central Bank of Nigeria has removed some restrictions that had stopped banks involved in foreign exchange transactions and government securities auctions from using its discount window.

The change was announced in a circular dated August 12, 2026, and signed by Okey Umeano, acting director of the CBN’s Financial Markets Department. It was addressed to deposit money banks, authorised dealers and the public.

Under the revised framework, banks will no longer lose access to the Standing Lending Facility because they participated in the Nigerian Foreign Exchange Market or in primary auctions of government securities.

The CBN also lifted the suspension on tenored repurchase transactions, saying it may now conduct repo operations across approved tenors from four to 90 days to support liquidity management and money-market operations.

The central bank kept one restriction in place: institutions that take part in Open Market Operations auctions will still be barred from accessing the discount window on the same day.

The circular also widened Open Market Operations participation to eligible investors, including individuals, companies and non-bank financial institutions, through deposit money banks.

Sources: Punch, Premium Times