CBN Boosts FX Market Transparency. As the apex Bank directs banks to execute all FX trades with corporates on FMDQ-advised FX Trading and Surveillance Systems.
In line with efforts geared towards the repositioning of the Nigerian foreign exchange (FX) market, and in its bid to promote transparency, professionalism and integrity in the market, the Central Bank of Nigeria (CBN) on July 8, issued a directive to all Authorised Dealers mandating that they execute all FX trades with corporate clients only through the FMDQ-advised Trading & Surveillance System, effective August 1, 2016.
The System, which is the FMDQ-Thomson Reuters Foreign Exchange Trading System (TRFXT) is being deployed to, among other things, enhance system-based dealing for FX (trading & surveillance) and provide the much needed credibility and transparency for all FX trades, whilst acting as a robust information depository, lending itself as an indispensable tool for the regulators.
This welcome move towards the resuscitation of the Nigerian FX market will serve to restore confidence, as the improved transparency is a major precursor for further inflows into the market, invariably improving the liquidity of the market. This is well in line with FMDQ’s mandate of making the Nigerian financial market globally competitive and liquid.
To this end, FMDQ has launched an onboarding process aimed at ensuring a seamless integration of all relevant stakeholders to the TRFXT.