The Central Bank of Nigeria (CBN) has announced the launch of the Electronic Foreign Exchange Matching System (EFEMS) for foreign exchange transactions in the Nigerian Foreign Exchange Market (NFEM).
In a statement by Omolara Duke, Director of the Financial Markets Department, it was confirmed that EFEMS will be implemented by December 1 at the latest.
Duke stated that the new system aims to improve governance, increase transparency, and promote 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 effectively regulate the market.
“Authorised dealers would subsequently conduct all foreign exchange transactions in the interbank Fx market on the EFEMS approved by the CBN where transactions will be reflected immediately,” she said.
She mentioned that a two-week test run would be conducted in November, and once the EFEMS becomes operational, the Central Bank will publish real-time exchange rates.
She added that the CBN would also collect buy and sell order data from the system and, in collaboration with the Financial Markets Dealers Association (FMDA), publish the rules governing the EFEMS.
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“The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also provide guidance to market participants.
“Authorised dealers are, therefore, required to comply with extant guidelines and regulations governing the Nigeria foreign exchange market.
“They should ensure that all necessary documentation, training, and systems integrations are concluded ahead of the go live date,” she said.
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