By Samiat Nov, 27, 2024 Finance

CBN Sets New $100,000 Minimum for FX Transactions 💹💰

The Central Bank of Nigeria (CBN) has introduced fresh guidelines for interbank foreign exchange (FX) trading through the Electronic Foreign Exchange Matching System (EFEMS), requiring a minimum trade value of $100,000. Here’s what you need to know:

Key Highlights

• 🖋️ Directive Issued: Signed by Dr. Omolara Duke, Director of Financial Markets Department, on November 25, 2024.

• 🌍 Trading Platform: Bloomberg’s BMatch is the designated platform for order matching.

• 🕒 Trading Hours: 9:00 AM - 4:00 PM (WAT) on business days.

• 💵 Minimum Trade Size: $100,000, with incremental clip sizes of $50,000.

• 🇳🇬 Scope of Transactions: Limited to spot FX trades between the Nigerian Naira and US Dollar, with the possibility of adding other currency pairs.

Participant Requirements

• 🔒 Eligibility: Only authorized dealer banks licensed by the CBN can trade.

• 📝 Compliance: Participants must adhere to CBN regulations, execute agreements with Bloomberg, and maintain accurate trade profiles.

• 💳 Limits: Transactions exceeding pre-set credit or settlement limits will not execute.

Transparency & Reporting

• 🔍 Anonymous Trading: Details remain confidential until transactions are matched.

• 📄 Daily Reports: Participants must report trade volumes, settlements, and counterparties to ensure transparency.

• 🛑 Penalties: Violations attract strict measures, including suspension or revocation of access rights.

Important Dates

• 🚀 Bloomberg BMatch Launch: December 2, 2024, as the official platform for FX trading.

This move by the CBN aims to enhance transparency, efficiency, and integrity in Nigeria’s FX market. 📊

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