Forex: CBN directs banks to execute deals via surveillance system
The Central Bank of Nigeria (CBN) has directed banks to execute all Foreign Exchange (FX) trades through the FMDQadvised FX trading, auction and surveillance systems.
The CBN gave the directive in a circular Alvan Ikoku, director, financial markets department, CBN on Friday.
It said with the effect from August 1, 2016, all Foreign Exchange (FX) related trades by authorized dealers and corporate institutions in the Nigerian forex market, must execute all transactions through the FMDQadvised FX trading, auction and surveillance systems.
“Therefore all authorized dealers (i.e. banks) are to execute all FX trades among themselves, and with their clients (corporate institutions) through FMDQ-advised FX systems. The deployment of the FMDQadvised FX systems will only be to those corporates that have been screened and pre-approved by FMDQ in line with its onboarding eligibility criteria” it said.
CBN urged all authorized dealers and corporate institutions operating in the Nigerian foreign exchange market to ensure strict compliance.