The CBN governor stated that FX primary dealers would be registered to deal directly with the CBN for large deal sizes.
According to Emefiele, “FX primary dealers will deal with other authorised dealers. There will be no more spread restrictions. The 41 items classified for not valid for FX are still not admissible in FX interbank market. The apex Bank may offer long-tenored FX forwards. However, selling of FX forwards must be trade backed with no pre-determined spreads. Over the Counter (OTC) FX futures will be introduced. The OTC FX futures are bespoke and volumes could be non-standard. Non-oil exporters are now allowed unfettered access to export proceeds via the interbank market.”
He continued “Guidelines of the general FX market and FX primary dealers will be released immediately. FX primary dealers will be appointed and notified by June 17, 2016. Interbank FX trading under the new guidelines will begin on June 20, 2016.”
The equities market breadth closed positive as NEM led 33 gainers against 10 losers topped by UPL at the end of Wednesday’s session, an improved performance when compared with previous outlook. Market turnover closes positive as volume surged by 244.74% against 12.05% uptick recorded in the previous session. United Bank for Africa (UBA), Skye Bank and First City Monument Bank (FCMB) were the most active to boost market turnover. Guaranty Bank and UBA Plc top market value list. Champion leads the list of active stocks that recorded impressive volume spike at the end of Wednesday’s session.