Nigeria Starts Bills to Boost Banks’ Liquidity, Grow Economy

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The bills will help improve banks’ liquidity ratios, which have come under pressure from “punitive” cash-reserve debits by the central bank, Adesoji Solanke, director for frontier and sub-Saharan Africa banks at Renaissance Capital in London, said by email. “That the securities are tradable between market players but not discountable at the CBN window however implies that new liquidity won’t be coming from the CBN, he said. Still it “gives the banks room to pledge the securities for liquidity from other sources.”



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