The Central Bank of Nigeria (CBN) has made history in the Nigerian FX market as it becomes the pioneer seller of the Naira-settled OTC FX Futures contracts on FMDQ OTC Securities Exchange (FMDQ) today, Monday, June 27, 2016.
A statement from the CBN said the CBN Governor, Mr. Godwin Emefiele, expressed delight that the foreign exchange market in Nigeria has attained the position where participants in Nigeria can settle foreign exchange futures transactions in Naira.
According to Emefiele, who was represented by the Special Adviser, Financial Market, Mr. Emmanuel Ukeje, “this product is novel in Nigeria and it gives comfort regardless of the price at which you have quoted to buy foreign exchange in Nigeria.
“In the same vein, the product is also expected to provide relief to Nigerians seeking Dollars to import critical machinery and raw materials from abroad as they can now lock-in their foreign exchange deals in earnest against their future demands,” the statement said.
He said the launching of the first naira-settled OTC FX Futures contracts was an important innovation in Nigeria’s financial market.
Emefiele explained that the product would offer Nigerians and investors the opportunity to rebuild the volatility witnessed in the FX market in the past.
He said CBN would continue to support the growth of the money and capital markets by introducing more friendly products for economic growth and development.
He added that the product would offer foreign investors the opportunity to channel their foreign exchange inflow to the country and thereby enhance liquidity.