Tuesday, 21 June 2016

CBN Appoints Wema Bank as FXPD



 The Central Bank of Nigeria on Monday appointed Wema Bank Plc as one of the primary dealers in the foreign exchange inter-bank market in the country.
The bank said in  a statement that with this new appointment, it was positioned as one of the banks to deal with the CBN in wholesale foreign exchange transactions (minimum of $10m) on a two-way quote basis, among other obligations as stated in the new forex guidelines.

The Managing Director and Chief Executive Officer, Wema Bank, Mr. Segun Oloketuyi, was quoted as saying, “This is a great achievement for the bank, which is presently undergoing a thorough business evolution. The appointment of Wema Bank as a primary dealer definitely implies that we control a relatively higher proportion of forex market volumes, which will be positive for our net interest revenue line.”
He said there was generally a huge backlog of forex demand (letters of credit, repatriations and foreign investment outflows) in the Nigerian economy, adding that the bank’s appointment as one of the primary dealers would go a long way in fostering its bid to serve its customers better.
While unveiling the broad forex market framework last week, the Governor, CBN, Godwin Emefiele, had said the primary dealers would be able to deal in minimum sizes of $10m for spot transactions and at least $5m for forwards, forex swaps and futures.


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