CBN Settle For Firstbank, Zenith, UBA and GTB for Foreign Exchange

By Monday tomorrow the the Nigerian Economic will commence  a new Flexible Foreign Exchange regime, The Central Bank Of Nigeria, CBN is prepare to elect the major player in the foreign exchange market.

Key players would be known as Foreign Exchange Primary Dealers, FXPD.

 According to CBN 8 or 10 bank would have been registered as FXPD, according to a news reporter only 4 banks are fully qualified, due to their audited financial report, as at 2015 and first quarter of 2016.

The four banks that have fully met the criteria are FirstBank of Nigeria Limited,
Zenith Bank Plc, United Bank for Africa Plc and Guaranty Trust Bank Plc.

Further analysis of the top 10 banks in the country, going by CBN’s criteria, shows that about four others may have also qualified with additional four close to meeting the benchmark.

From source the banks are Access Bank Plc, Diamond Bank Plc, FCMB Plc, Fidelity Bank Plc,
which have some of the key requirements as at end of 2015 and are expected to have qualified by the first quarter of 2016.Access Bank, GTB, FirstBank, Zenith and UBA have been leading in volume of bids and allocation of foreign exchange from the CBN weekly foreign exchange trading since last year.

Other banks that would have been considered if CBN decides to move up the list include Stanbic IBTC Bank Plc, Skye Bank Plc and Sterling Bank Plc,

In other word, Ecobank, is expected to hit 10 but their financial reports were US dollar denominated and could not be immediately translated into Naira due to the regime policy.

According to CBN stating: “To improve the dynamics of the market, the apex bank will introduce Foreign Exchange Primary Dealers (FXPD), who would be registered with the CBN to deal directly with the apex bank for large trade sizes on a two-way quotes basis.

“These primary dealers shall operate with other dealers in the inter-bank market, among other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines.


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