The FMDQ congratulates CBN for restoring transparency on the foreign exchange market

By Goddy Egene

The CEO, Groupe FMDQ, Mr. Bola Onadele. Koko, praised the Central Bank of Nigeria (CBN) for enabling trading on the system and reporting of foreign exchange transactions (FX) on the system advised by the FMDQ.

The CBN, in line with its desire for a more liquid market, last month took a remarkable step in increasing transparency by activating trading on the system and reporting foreign exchange transactions on the system advised by the FMDQ. .
This move was supported by the adoption of NAFEX as the benchmark rate for public sector transactions denominated in foreign currencies.

Commenting on this development, Onadele said: “The FMDQ is delighted with the introduction of market development initiatives by the CBN to ensure the further development of the foreign exchange market, recognizing that a liquid, transparent and credible foreign exchange market is a major precursor for an increased influx into the Nigerian financial market.

“The FMDQ remains committed to institutionalizing structures – processes, efficient systems, etc., in collaboration with market players, to support initiatives aimed at creating a thriving foreign exchange market well positioned to support the Nigerian economy. “

According to him, speaking to the market, the Governor of the CBN, Mr. Godwin Emefiele, had stressed the importance of a transparent and credible foreign exchange market, and had reiterated the commitment of the CBN to implement the initiatives. market improvement necessary to instill confidence in order to sustain and deepen the Nigerian Foreign Exchange Market.

To this end, the CEO of FMDQ said that the implementation of the market initiatives has resulted in a significant increase in the turnover recorded in the foreign exchange market, from an average monthly turnover recorded in January to April 2021 at $ 1.30 billion, compared to May 2021 with revenue of $ 2.52 billion. recorded, while the number of executed trades rose from an average monthly number of 6,733 transactions in January to April, to 6,949 transactions in May.

“The renewed confidence and depth of the forex market will enhance the attractiveness of the Nigerian market for foreign portfolio investors and also pave the way for the introduction of new derivatives on the FMDQ platform to support exposure hedging.” risks by local and foreign market players. ,” he said.

According to him, as Africa’s first vertically integrated Financial Market Infrastructure (IMF) group and one-stop-shop platform to start and complete all financial market transactions in a transparent, fast and cost-effective manner, the FMDQ group remains in a position to work in collaboration with the market players in the development of Nigerian markets through innovative and value-added solutions.

“With its renewed aspiration as encapsulated in its mission to ‘collaborate to empower markets for economic progress towards prosperity’, the FMDQ group, having consolidated its activities into a fully diversified platform across several classes of assets, is strategically positioned to support the transformation of the Nigerian economy. financial market to become globally competitive, operationally excellent, liquid and diversified, ”he said.

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