₦airaland Forum

Great100000:
Source: https://nairametrics.com/2024/11/29/cbn-governor-says-fx-matching-system-will-correct-nairas-true-value/

tundegan:
I like this Cardoso guy.

advanceDNA:
This wéréy just want to build another FX matching website for 100 billion to embezzle.

It's business as usual....once u are in..chop your own before 4 years end

Believeintruth:
Shut up

Fearurcreeator:
Only thing in your own head na negativity, in reality many of you like this corrupt pass anything

tundegan:
I like this Cardoso guy.

advanceDNA:
This wéréy just want to build another FX matching website for 100 billion to embezzle.

It's business as usual....once u are in..chop your own before 4 years end

BreconHills:
It's Bloomberg BMatch software. They are not building anything. The platform is being used all over the world

Believeintruth:
The truth is the only way the true naira value can be determined is if the CBN is sincere is advising the government to ensure that the earnings increases. You cannot have low earning potential and you keep doing tumbo tumbo with the monetary policies whereas the fiscal side is BS.
Until the CBN and Finance ministry address this, the issue will still remain the same.

advanceDNA:
So what's if it's Elon Musk software...... Is it free??
They also collect taxes all over the world....it's here we embezzle our own

advanceDNA:
Lol...the problem with pple like u is that u are delusional, naive, or just foolishly optimistic ......When someone says he will solve a problem without telling you exactly the mechanism of action by which the problem will be solved.. it's all smoke screen.... U snt need rocket science for that

.....no be this same Nigeria wey those that buy dollars just to keep are far more than those buying for actual use.... Solution that doesn't address the peculiarity of Nigeria FX market is what u want me praise...I nor dey praise or raise my optimism for mediocrity..

Shebi na here we dey....., una go start una usual shalaye when no results..then una go quickly look for something else to blame like una blame end sars protest for inflation during buhari era....

Fearurcreeator:
Why are the people you call fools ruling you , doesn that not shows you are the idiot here... Many of you know too much from behind your phone... Mouth no dey do am... Why is your own papa no dey helms of affair if its easy ...

advanceDNA:
I know you already know the answer to your question....
Its because of people like you that collect scrap money to push in clueless, thieving leaders .

.....pple like u who support mediocrity and incompetence ...

..leaders are not making impact in the lives of pple, stealing our common wealth you are here saying its not easy.....

...it's always easy to steal our common wealth ...but when its time to serve the pple ...then its not easy..

actually...its easy to make impact in the life of the people .....just focus on the people's welfare instead of your personal pocket....

Fearurcreeator:
Your papa not capable, just admit and go sleep

advanceDNA:
Sigh...I ddnt know this one is even from the gutters... Please keep ur mentions to urself, u have no point....you will soon be back 4 years time to defend incompetent and embezzling leaders

Great100000:
Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has revealed that the soon-to-be-introduced electronic FX matching system will address the disconnect between the current naira-to-dollar exchange rate and the naira’s true market value.

Speaking at the Bankers’ Committee Annual Dinner held on November 29, 2024, at Eko Hotel, Lagos, Cardoso emphasized that the system would enhance price discovery and restore stability to the foreign exchange (FX) market.

According to Cardoso, the naira’s current exchange rate reflects the actions of desperate buyers rather than genuine market dynamics.

“The current USD exchange rate reflects the price that the most desperate buyers are willing to pay, and this does not represent the true market value of the naira,” he said. The FX matching system, he noted, will correct these distortions, creating a more transparent and stable FX market.

Tackling FX Market distortions

The electronic FX matching system is part of broader efforts by the CBN to unify Nigeria’s exchange rate and eliminate market distortions.

Over the past year, the CBN has implemented significant reforms, including clearing outstanding foreign exchange obligations, which have bolstered confidence among businesses, particularly manufacturers and airlines.

“The introduction of the FX matching system will enable the Central Bank to monitor the market more effectively and intervene where necessary. This will significantly improve transparency and provide a more accurate reflection of the naira’s value,” Cardoso stated.

Countering disinformation

Cardoso also addressed concerns over the widespread narrative of a persistent demand-supply gap in the FX market, which he believes is fueling unnecessary panic. He emphasized that such disinformation has distorted perceptions of the FX market’s true state.

“Disinformation about a supposed demand-supply gap has created panic that is unwarranted. The FX matching system will help put an end to this by ensuring that rates reflect actual market activity,” he explained.

The governor further reassured stakeholders that these measures will create a more functional FX market where businesses and individuals can operate with confidence.

Role of Banks in stabilizing the FX Market

Cardoso highlighted the critical role that Nigerian banks must play in ensuring the success of the FX reforms. He pointed out that a well-functioning FX market cannot rely solely on the Central Bank’s periodic interventions.

“An FX market defined solely by when and how the Central Bank buys or sells dollars is inadequate for the needs of a dynamic economy like Nigeria’s. Now is the time for banks to step up to their intermediation and market-making responsibilities,” Cardoso stated.

He urged financial institutions to actively provide tailored solutions to businesses and individuals, enabling them to manage risks and meet their operational needs effectively.

Strengthening Market Confidence

- With the rollout of the electronic FX matching system, the CBN aims to foster greater stability and predictability in the FX market.

- By addressing speculative distortions and ensuring that exchange rates are driven by real demand and supply, the naira is expected to better reflect its true value.

- Cardoso reiterated the CBN’s commitment to maintaining price stability and creating a policy environment conducive to economic growth.

- He expressed optimism that the new measures would restore confidence in Nigeria’s FX market and encourage long-term investments.

The FX matching system, which has been successfully implemented in other markets, is set to launch in the coming months, signalling a significant step toward achieving transparency and stability in Nigeria’s foreign exchange landscape.
Source: https://nairametrics.com/2024/11/29/cbn-governor-says-fx-matching-system-will-correct-nairas-true-value/

eseelvis:
What is electronic FX matching system

An Electronic FX Matching System is a computerized platform that facilitates the matching of foreign exchange (FX) trades between buyers and sellers. Here's a breakdown:

*Key Components*

1. *Electronic Trading Platform*: A digital platform that enables participants to submit FX trade orders.
2. *Matching Engine*: A sophisticated algorithm that matches buy and sell orders based on price, quantity, and other criteria.
3. *Order Management System*: A system that manages and prioritizes trade orders, ensuring that they are executed efficiently and accurately.

*How it Works*

1. *Order Submission*: Participants submit FX trade orders (buy or sell) through the electronic trading platform.
2. *Order Matching*: The matching engine analyzes the orders and matches them based on price, quantity, and other criteria.
3. *Trade Execution*: Once a match is found, the trade is executed, and the parties are notified.
4. *Settlement*: The trade is settled, and the exchange of currencies takes place.

*Benefits*

1. *Increased Efficiency*: Electronic FX matching systems automate the trading process, reducing manual errors and increasing efficiency.
2. *Improved Transparency*: The system provides real-time price information, enabling participants to make informed trading decisions.
3. *Reduced Costs*: Electronic trading reduces the need for intermediaries, resulting in lower transaction costs.
4. *Enhanced Liquidity*: The system attracts a large number of participants, increasing liquidity and reducing price volatility.

*Examples*

1. *EBS (Electronic Broking Services)*: A leading electronic FX trading platform.
2. *Reuters Dealing*: A popular electronic FX trading system.
3. *Bloomberg FXGO*: A electronic FX trading platform for institutional investors.

Electronic FX matching systems have revolutionized the foreign exchange market, enabling faster, more efficient, and more transparent trading.



Examples of country that is using electronic FX matching system


Here are some examples of countries that use electronic FX matching systems:

1. *United States*: The US uses various electronic FX trading platforms, including EBS, Reuters Dealing, and Bloomberg FXGO.

2. *United Kingdom*: The UK is home to several major electronic FX trading platforms, including EBS, Reuters Dealing, and ICAP.

3. *Japan*: Japan uses electronic FX trading platforms, such as EBS, Reuters Dealing, and Bloomberg FXGO.

4. *Singapore*: Singapore is a major FX trading hub and uses electronic FX trading platforms, including EBS, Reuters Dealing, and Bloomberg FXGO.

5. *Australia*: Australia uses electronic FX trading platforms, such as EBS, Reuters Dealing, and Bloomberg FXGO.

6. *Canada*: Canada uses electronic FX trading platforms, including EBS, Reuters Dealing, and Bloomberg FXGO.

7. *Germany*: Germany uses electronic FX trading platforms, such as EBS, Reuters Dealing, and Bloomberg FXGO.

8. *France*: France uses electronic FX trading platforms, including EBS, Reuters Dealing, and Bloomberg FXGO.

9. *China*: China uses electronic FX trading platforms, such as the China Foreign Exchange Trading System (CFETS).

10. *India*: India uses electronic FX trading platforms, such as the Indian Rupee-US Dollar (INR-USD) trading platform.

These countries are not exhaustive, and many other countries use electronic FX matching systems to facilitate foreign exchange trading.

CodeTemplarr:
How will the matching system work? Will the regulators circumvent it by collusion?