Banks Anticipate Result of New Forex Auction System

After the replacement of the wholesale foreign exchange auction method called Wholesale Dutch Auction System (WDAS) with the newly introduced retail foreign exchange auction system (RDAS) on Wednesday by the Central Bank of Nigeria (CBN), the financial market anticipate the outcome and how possibly it will affect the economy. This measure was taken as a tool to control money laundering and reduce inflation crisis.

The President, Financial Market Dealers Association, Sola Adegbesan, said that RDAS would assist the CBN to discover possible loopholes in the financial system and consequently plug them to improve the economy.

Research and financial analysts said the purpose of the policy was to help the CBN block possible leakages, which have been putting pressure on the naira. The CBN aims to reduce the amount of dollars in circulation as such, had directed most foreign exchange payments to be made via cards, electronic transfers and other cash-less means.