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LequteMan
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The Central Bank of Nigeria, CBN, has been forced to amend parts of its new foreign exchange policy by a major controversy, Vanguard reports.
The controversial aspect was the Foreign Exchange Principal Dealers, FXPD, arrangement under which the apex bank said it would trade forex principally with about eight to 10 banks which it would register as principal dealers or FXPDs, who in turn would deal with other banks and traders.
It's believed that about 13 banks shut out of the initial FXPD class have pressured the apex bank to either jettison the FXPD arrangement or accommodate more or all banks, a request the apex bank was said to have accepted as a compromise, thereby, jettisoning its initial criteria for admitting banks into the FXPD class.
Consequently, the apex bank had reversed itself by weekend, issuing FXPD license to 15 banks instead of maximum 10.
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The controversial aspect was the Foreign Exchange Principal Dealers, FXPD, arrangement under which the apex bank said it would trade forex principally with about eight to 10 banks which it would register as principal dealers or FXPDs, who in turn would deal with other banks and traders.
It's believed that about 13 banks shut out of the initial FXPD class have pressured the apex bank to either jettison the FXPD arrangement or accommodate more or all banks, a request the apex bank was said to have accepted as a compromise, thereby, jettisoning its initial criteria for admitting banks into the FXPD class.
Consequently, the apex bank had reversed itself by weekend, issuing FXPD license to 15 banks instead of maximum 10.
Read more
