Lagos – The two-way quote (2-WQ) inter-bank foreign exchange market has gone live on the platform of FMDQ OTC Securities Exchange.
FMDQ in a statement issued in Lagos on Monday said that this followed the release of the revised Central Bank of Nigeria (CBN) guidelines for the operation of the Nigerian Inter-Bank FX Market.
The statement said that Naira-settled OTC FX Futures market would be launched on June 27 on FMDQ.
The CBN has resolved to clear the backlog of FX demand through Spot and Forward Settlements, thereby giving the market the needed liquidity and confidence.
It stated that “the CBN’s Authorised Dealers (ADs) set the pace for this market-driven trading window through the FMDQ Thomson Reuters Foreign Exchange Trading System”.
It explained that the single and autonomous inter-bank FX market structure guidelines would support the apex bank’s desire to enhance efficiency and facilitate a liquid and transparent Nigerian FX market.
The statement said that the CBN would perform its role as a market intervention participant, in line with global standards, while market forces determine demand and supply dynamics of the market.
According to the statement, the CBN FX Primary Dealers have also been introduced to help facilitate the apex bank’s market interventionist role.
Ms Tumi Sekoni, FMDQ Vice President & Divisional Head, Marketing & Business Development, was quoted by the statement as saying that the organisation would ensure greater investor confidence in the FX market through the inter-bank 2-WQ FX market.
Sekoni said that FMDQ was adequately equipped to provide a complete and consolidated marketplace for FX trading and reporting.
She added that FMDQ would offer market participants and regulators a robust and flexible set of tools to support the full trade work flow.
“The reforming of the 2-WQ inter-bank FX market brings about a lot of promise for the resuscitation of the Nigerian FX market and by extension the development of the nation’s economy,” Sekoni said.
She further highlighted that the goal of FMDQ for the OTC fixed income, FX and derivatives markets was to make the Nigerian financial market globally competitive, operationally excellent, liquid and diverse. (NAN)
