CBN Eases Borrowing Rules for Banks in FX Transactions

The Central Bank of Nigeria (CBN) has announced a relaxation of borrowing rules for banks participating in foreign exchange transactions and government securities auctions. This decision, effective immediately, is part of efforts to improve liquidity management and money market operations.

The changes were detailed in a circular titled “Review of Discount Window Restrictions and Open Market Operations Participation Framework,” published on the CBN’s website on August 12, 2026, and signed by Okey Umeano, the Acting Director of the Financial Markets Department. The CBN lifted restrictions that previously barred banks from accessing its Discount Window due to their participation in the Nigerian Foreign Exchange Market and primary auctions of government securities.

However, the CBN retained the restriction on same-day participation in Open Market Operations (OMO) auctions for institutions accessing the Discount Window. This revised framework follows earlier circulars issued on October 7, 2022, and October 23, 2019, regarding access to the Discount Window and OMO auctions.