CBN Alters Rules For Selection Of Primary Dealers As New FX Regime Takes Off Today

As trading on the Nigeria Interbank Foreign Exchange (NIFEX), which allows the exchange rate of the naira to be market-driven commences today, the Central Bank of Nigeria (CBN) has moved to change the guidelines for the selection of FX Primary Dealers (FXPDs) who shall deal in wholesale forex transactions with the CBN.

Last Wednesday, the CBN had unveiled the guidelines for the commencement of a flexible exchange rate regime, adding that it would appoint eight to 10 primary dealers, whom the central bank Governor, Mr. Godwin Emefiele, referred to as “Grade A” dealers.

Others were classified as “Grade B”, whom the CBN termed as non-primary dealers, but shall remain valid and eligible to participate in the market.

It had also said interbank trading under the new guidelines would begin today, while tenors and rates for the naira-settled OTC FX Futures would be announced on June 27, 2016.

Under the guidelines for primary dealership in forex products, the CBN also stipulated that authorized dealers would be required to have a minimum shareholders’ fund unimpaired by losses of at least N200 billion, a minimum of N400 billion in total foreign currency assets, and minimum liquidity ratio of 40 per cent.

The names of the eight or 10 primary dealers were to be released by the CBN last Friday.

However, the segmentation of the market into “Grade A” and “Grade B” dealers by the CBN resulted in concerns that limiting the market to eight or 10 primary traders or banks with access to forex from the central bank could lead to the emergence of a cartel of favoured banks and price-fixing among them.

Credit: Thisday

Tension In Ile-Ife Over Selection Of Ooni’s Deputy

There was tension in Ile-Ife, Osun State, yester­day in the ongoing screening of candidates for the selection of Obalufe of Ife as deputy to Ooni of Ife, Oba Adeyeye, Enitan Ogunwusi.

The position became vacant after the demise of the late Obalufe, Oba Solomon Omi­sakin in 2015.

Obalufe is the traditional ruler of Iremo, in Ile-Ife; head of Ife kingmakers and next in command to the Ooni in hier­archy according to the tradi­tion of the town.

The process of selecting a new Obalufe started with the inauguration of a committee under the chairmanship of Ayoola Olafiranye.

Daily Sun gathered that the committee was saddled with the responsibility of screen­ing all the 10 contenders from the Aga Ruling House for the stool and report its findings to the house.

The committee reportedly invited all the aspirants and screened them but, before it could submit its reports, majority of the contenders accused it of planning to an­nounce the name of an aspi­rant, Elu Abayomi, from the female lineage. They insisted Abayomi is not qualified to contest.

This led to rancour by the supporters of the contenders who threatened to shut down the town if Abayomi, alleged­ly preferred by the committee, was announced as planned.

A traditional chief in Ife, Atimi Bada, the Logun Apata of Ile-Ife told Daily Sun that the contenders for the vacant stool must come from a male lineage and that those from the female lineage could only contest only if there was no competent candidate from the male lineage.

Credit: Sun