CBN sets August 1 date for banks to use FMDQ platform –


With effect from August 1st 2016, all forex-related trades by banks and corporate institutions in the forex market must be executed through the FMDQ-advised FX trading, auction and surveillance systems, the Central Bank of Nigeria (CBN) has said.

The apex bank gave this directive in a circular posted on its website last Friday.

According to the circular, which was signed by the Director, Financial Markets Department, Dr. Alvan Ikoku, “all Authorised Dealers (i.e. Banks) are to execute all FX trades among themselves and with their clients (i.e. Corporate Institutions) through the FMDQ-advised FX Systems.

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

”Stressing that banks and corporate institutions operating in the foreign exchange market should comply strictly with the directive, the apex bank said it was part of efforts to engender, transparency and professionalism in the Nigerian foreign exchange market.”

Financial analysts, however, believe that the directive is an attempt by the regulator to close possible loop holes for abuse that it had observed since trading under the new forex system, which commenced on June 20th.