FMDQ seeks improved action to attract $30 trillion sustainability fund in the capital market

Traders on the FMDQ where forex is traded officially have implemented a +/-5% band around the previous day NAFEX while also caping bid/offer spread to N50.

Sources with knowledge of the matter reveal the new changes is not an FMDQ official guideline, however, they are aware of the changes being introduced by some major forex dealers including banks Some commercial bank officials also confirmed same to Nairametrics.

The actions form part of a broader set of changes in the nation’s official market for trading forex which has been plagued by forex volatility. Trading hours have also been set for 10am to 2pm from the previous 10am to 4pm.

Also introduced is a standard ticket size of $100,000 which refers to the minimum transaction size or the smallest amount that can be traded on this market. Setting a standard ticket size of $100,000 indicates that the market is targeting institutional investors or large transactions, rather than retail investors.

This is expected to enhance the market’s liquidity and ensure that significant amounts of foreign currency can be traded with relative ease, catering to the needs of large corporations and financial institutions.

Stakeholders in Nigeria’s forex market opine this is reminiscent of the market structure that existed around 2006 when over $2 million was the standard ticket size.

Another important feature introduced by the so-called dealers is a bid/offer spread of N50 which is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (offer).

A fixed spread of N50 suggests a controlled trading environment, which could make trading costs predictable. However, it also means traders have less flexibility to negotiate prices, which could impact the market’s adaptability to sudden changes in supply and demand.

The traders also introduced circuit breakers which are mechanisms used to temporarily halt trading on an exchange if prices hit predefined levels, while a volatility band refers to the range within which the exchange rate is allowed to fluctuate during a trading session.

The introduction of a +/- 5% band around the previous day’s NAFEX (Nigerian Autonomous Foreign Exchange Rate Fixing) rate means that the exchange rate for the day’s trading cannot deviate more than 5% from the previous day’s NAFEX rate. This is intended to prevent excessive volatility and protect the market from erratic fluctuations.

The guideline that the +/- 5% band around the previous day’s NAFEX rate can be communicated daily ahead of the market open suggests a commitment to transparency and allows market participants to prepare for the day’s trading with a clear understanding of the permitted trading range.

https://nairametrics.com/2024/02/23/fmdq-traders-introduce-cap-bid-offer-spread-to-n50-in-new-forex-trading-changes/

The actions form part of a broader set of changes in the nation’s official market for trading forex which has been plagued by forex volatility. Trading hours have also been set for 10am to 2pm from the previous 10am to 4pm.

No going back on the economic reforms. This is the best opportunity we have to correct our mistakes and reform our economy. The era of using our hard earned forex to defend foreign currency criminally overvalued on the streets and manipulated by speculators and unpatriotic elements is coming to an end.

God bless Nigeria for ever! Check my signature for free stuffs!

Tinubu and his bunch of scammers deceiving the populace. They sell crude oil, get dollars and other foreign currencies and sell the dollars to banks at over N1500 and still go around to arrest the bureau the change operators that bought the dollars from the banks to resell. Doing everything they can to BLAME EVERYONE ELSE, But themselves. Even the innocent crypto traders are not left out. Thieves.

Uhm

Ok

Friends Jesus Christ loves y'all and he want you to accept him as your personal lord and saviour by giving your life to Christ, believing in him and repenting of your sins.remember tomorrow might be too late. Shalom

Speculators VS FG, who blinks first?
saboteurs VS CBN, who will win?

Right now, scores is:


saboteurs 3: 0 CBN


but CBN still has time to equalize and win. Right now, they have been changing formation which is confusing both their supporters and opponents alike

Hope this people knows
What they're doing

This is good!

Enemy of Nigeria will lose last last. Those losers that want Nigeria perish because their Pandora master lost election will be disgraced

What about the fundamentals?

Good move!

Way to go

How these go benefit common man.

Z

A lot is going on in the financial sector for the good of the country.

Keep up the good work guys! Nigeria is being re-engineered for prosperity.

Good. Bring in more regulations. Better than using tout approach. Directing security operatives to arrest or shoot any dollar at sight!

All I can say is
If Tinubu can solve this FX issue once and for all .. he should do that..
I support any reforms that can take away this pain...
If Nigeria collapses today it's not gonna be sweet

VeeVeeMyLuv:
What about the fundamentals?

One after the other! Technicals and fundamentals will be tackled.

Chai..


Either good or bad,

...activated teens will still throw stones and bricks.

Ok

The mandate thief is busy chasing red herrings

Okay

Palliatives, everywhere
No amount of Tum-bom, tum-bom can stand in the way of the market forces.

May God give him the knowledge and understanding to achieve his aim

FreeStuffsNG:
The actions form part of a broader set of changes in the nation’s official market for trading forex which has been plagued by forex volatility. Trading hours have also been set for 10am to 2pm from the previous 10am to 4pm.

No going back on the economic reforms. This is the best opportunity we have to correct our mistakes and reform our economy. The era of using our hard earned forex to defend foreign currency criminally overvalued on the streets and manipulated by speculators and unpatriotic elements is coming to an end.

God bless Nigeria for ever! Check my signature for free stuffs!

All these are just government propaganda to deceive guillable Nigerians.

The price of the dollar is controlled by market forces of demand and supply.

And the demand for the dollar in the country right now is astronomically high caused mostly by government paraststals and agencies including state governors who converts government allocations in naira to dollars, give to the banks are channelling the dollars the black market at exorbitant price

Do you know the impact this will have on the economy