CBN Governor, Godwin Emefiele
The Central Bank of Nigeria (CBN) has officially approved 16
commercial banks to participate in the market as primary dealers of the
new flexible foreign exchange policy.
The number of dealers is six more than the initial 10 the CBN
governor, Godwin Emefiele, said would be appointed to play in the new
market which took off on Monday.
According to a CBN source who disclosed to Premium Times on
Thursday in Abuja, at least 16 of country’s top banks met the criteria
for selection as primary dealers in the market.
Recall that at the unveiling of the new FX policy last week, CBN
governor, Godwin Emefiele, said that only 10 banks with financial
capacity to handle a minimum volume of $10 million deal, would be
appointed to work with the CBN as primary dealers when the market
formally opens.
The primary dealers, the CBN governor explained, would operate with
other dealers in the Inter-bank market in line with stipulated foreign
exchange primary dealers (FXPD) guidelines, while CBN’s participation
would be limited to periodic interventions to either buy or sell FX as
the need arises.
The source at the CBN, said that prior to the formal opening of the
new FX market on Monday, all banks were given the opportunity to show
capacity to participate in the market.
According to the source, apart from three merchant banks that were
unable to respond, all interested banks submitted applications after
reviewing the stipulated guidelines for prospective dealers, at the end
of which 16 of them were considered qualified as primary dealers.
He however refused to name the 16 selected banks, saying in view of
the CBN’s determination not to be seen as influencing the independence
of the market, it was advisable that only the affected banks would be
allowed to make such disclosures.
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