Cbn directs authorized dealers to involve corporate participation in forex trading

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CBN Directs Authorized Dealers to Involve Corporate Participation in Forex Trading

The Central Bank of Nigeria (CBN) has issued a directive to authorized dealers in the foreign exchange market to involve corporate participation in forex trading. This move is aimed at increasing the participation of corporate entities in the foreign exchange market, thereby deepening the market and reducing the dominance of individual players.

According to the CBN, the directive is part of efforts to promote a more robust and efficient foreign exchange market, which will ultimately benefit the economy. The apex bank believes that corporate participation will bring more stability and predictability to the market, as well as reduce the volatility that has characterized the market in recent times.

The CBN has also emphasized the need for authorized dealers to ensure that their corporate clients are properly vetted and meet the necessary requirements before participating in the foreign exchange market. This includes ensuring that the clients have a valid business license, a good credit history, and a clear understanding of the risks involved in foreign exchange trading.

The directive is seen as a positive development by many market analysts, who believe that it will help to increase the liquidity of the foreign exchange market and reduce the reliance on individual players. It is also expected to promote a more competitive market, which will ultimately benefit the economy and improve the overall well-being of Nigerians.

Overall, the CBN's directive is a step in the right direction, and it is expected to have a positive impact on the foreign exchange market and the economy as a whole.