A progression of stringent guidelines has been introduced by the Central Bank of Nigeria (CBN) which aims at taking control of the fixed income market in the country.
These policies, which will be implemented in November are aimed at increasing transparency in the Nigerian financial sector. This was announced by the highest body of financial authorities in a recent communique.
According to the CBN, this initiative is a pivotal part of far reaching financial market reforms.
The main aim is to enhance regulations control and enhance the ability of market to effectively transmit the monetary policy, thus enhancing economic growth.
The statement further reveals that this transition will facilitate the CBN to assume direct accountability in the management of the trading platform and its full settlement operations via the developed settlement system of the bank in carrying out transactions in the financial market.
Also, according to DAILY POST, fixed income securities can be characterized as investments that yield returns in the form of frequent fixed interest payment and later on, repayment of the principal as the investment matures.
