CBN Governor, Sanusi Lamido Sanusi
The Central Bank of Nigeria (CBN) Wednesday warned that authorised dealers were prohibited from accessing the Wholesale Dutch Auction System (WDAS) whenever they have a repurchase agreement or a Standing Lending Facility (SLF) with the apex bank.
The CBN gave this directive in a circular tagged: “Review of the Revised Guidelines for Accessing CBN Lending Window and Repo Transactions,” dated August 1, 2012, a copy of which was posted on its website.
The circular with reference number, “Ref: FMD/DIR/GEN/CIR/03/006,” signed by the Director, Financial Markets Department, CBN, E.U. Ukeje, stated that the directive takes immediate effect.
It explained: “Further to the prohibition of authorised dealers from accessing the WDAs and the Standing Lending Facility (SLF) on the same day, authorised dealers are henceforth not allowed to access the WDAS window throughout the term of a repurchase or SLF transaction with the CBN.
“However, authorsied dealers that have entered into repurchase or SLF transactions with the CBN prior to the issuance of this circular will not be affected as the transaction would be allowed to run its full course.”
Meanwhile, the naira eased against the US dollar at both the interbank and bi-weekly forex auction.
For instance, at the interbank, the local currency fell by 10 kobo to close at N160.90 to a dollar yesterday, from Tuesday's value of N160.80 to a naira.
At the WDAS, the apex bank offered a total of $250 million at N155.86 to a dollar at its first auction in August, as against the $200 million sold at N155.84 to a dollar on Monday.