• Saturday, June 15, 2024
businessday logo

BusinessDay

CBN directs currency dealers to execute trades via FMDQ-advised FX system

businessday-icon

Effective August 1, 2016, the Central Bank of Nigeria (CBN) has directed that all Foreign Exchange (FX) related trades by authorized dealers and corporate institutions in the Nigerian forex market, be executed through the FMDQ-advised FX trading, auction and surveillance systems.

This is in furtherance of its efforts in engendering transparency and professionalism in the Nigerian foreign exchange market.

In a circular signed by Alvan Ikoku, director, financial markets department, the CBN said all authorized dealers (banks) are expected to execute all FX trades among themselves and with their clients (corporate institutions) through the FMDQ-advised FX systems.

The deployment of the FMDQ-advised FX systems will only be to those corporates that have been screened and pre-approved by FMDQ in line with its on-boarding eligibility criteria, the CBN said.

The Apex bank urged all authorize dealers and corporate institutions operating in the Nigerian foreign exchange market to ensure strict compliance.