The Two-Way Quote System
The Two Way Quote System is one that requires Banks to provide bid and offer rates and to deal on either regardless of its trading position. This is accepted as best practice internationally.
The Two Way Quote System has the potential of deepening the Nigerian Money Market. Firstly, it is a transparent means of trading, as players will be forced to show margins between their bid and offer rates. This reduces the likelihood of players making undue margins and forces the market to be competitive. Secondly, it creates a vibrant and liquid secondary market as players can buy and off load at anytime.