The Central Bank of Nigeria (CBN) will implement electronic foreign exchange matching systems (EFEMs) for foreign exchange transactions in the Nigerian foreign exchange market on December 1st, 2024.
In a circular signed by Dr Omolara Duke, Director of Currency Operations, CBN, the process will go through a two-week test run in November 2024 before the take-off date.
According to the statement, authorised dealers would subsequently conduct all foreign exchange transactions in the interbank FX market on the Electronic Foreign Exchange Matching system approved by the apex bank, where transactions will be reflected immediately.
The circular further stated that the new system will enhance transparency and governance and facilitate a market-driven exchange rate that will be accessible to the public.
This development is expected to reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to regulate the market effectively.
“The CBN will publish real-time prices and buy/sell orders data from the system, and in collaboration with the Financial Market Dealers Association, publish the rules for the EFEMs.
“The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also guide market participants,” the circular added
CBN also expects market participants to comply with the extant guidelines and regulations governing the Nigerian foreign exchange market and ensure all necessary documentation, training, and systems integrations are concluded before the go-live date.
