The Central Bank of Nigeria (CBN) has ordered banks to publish details of all foreign exchange transactions on the Financial Market Dealers Quote (FMDQ) platform.
Meanwhile the naira depreciated by 1.5 percent (N4.5) at the interbank foreign exchange market for spot transactions. From N305.25 per dollar at the end of transactions on Friday, the exchange rate for spot transactions dropped rose to N309.84 per dollar at the close of business yesterday. But at the parallel market the naira remained relatively stable as the parallel market rate stood at N376 per dollar.
Announcing the directive of the CBN in an email to foreign exchange dealers, Managing Director/Chief Executive FMDQ, Mr. Bola Onadele said, “Banks should “update all trades irrespective of the exchange rate.
“The CBN is very interested in credible price formation for the spot foreign-exchange market. It is also imperative for price discovery and liquidity assessment of our market, which are key to activate foreign portfolio investment flows”, he said Banks should publish all their so-called “off-line trades” on its trading system “within 30 minutes of execution of such transactions,” according to a separate e-mail sent to dealers by FMDQ on the same day. The naira fell 3.9 percent, the most since the devaluation, to 305.25 on July 22, the day after Onadele’s e-mails. It rose 2.9 percent to 296.75 by 2:38 p.m. in Lagos on Monday.
Nigeria has struggled to attract foreign money into its bond and equity markets since devaluing the naira by 30 percent on June 20, ending a 16-month peg of 197-199 per dollar, with investors concerned the central bank was still controlling the exchange rate. FMDQ started operations in 2013 and is chaired by Sarah Alade, deputy governor of the CBN.