The Central Bank of Nigeria (CBN) has officially announced the rollout of an Electronic Foreign Exchange Matching System (EFEMS) aimed at enhancing Foreign Exchange (FX) transactions within the Nigerian Foreign Exchange Market (NFEM).
In a statement released by Omolara Duke, the Director of the Financial Markets Department, the EFEMS is set to be operational by December 1.
Duke emphasized that the new system is designed to improve governance and transparency while facilitating a market-driven exchange rate that is accessible to the public.
“This initiative is anticipated to diminish speculative behaviors, eradicate market distortions, and provide the CBN with enhanced oversight capabilities for effective market regulation,” she stated.
From the launch date, authorized dealers will be required to conduct all foreign exchange transactions in the interbank FX market through the CBN-approved EFEMS, where transactions will be recorded in real time.
A two-week trial period is scheduled for November, during which the apex bank will begin publishing real-time pricing once the EFEMS becomes operational.
Additionally, the CBN will manage buy and sell orders within the system and, in partnership with the Financial Markets Dealers Association (FMDA), will release the operational guidelines for the EFEMS.
The Nigerian FX Code and updated Market Operating Guidelines for the Nigerian Foreign Exchange Market will offer further guidance to market participants.
Authorized dealers are therefore urged to adhere to existing guidelines and regulations governing the Nigerian foreign exchange market, ensuring that all necessary documentation, training, and system integrations are finalized prior to the launch date.
