By Barnabas Esiet.
The Central Bank of Nigeria (CBN) has announced the introduction of the Electronic Foreign Exchange Matching System (EFEMS) for foreign exchange transactions in the Nigerian Foreign Exchange Market.
A circular to authorised dealers signed by the Director, Financial Markets Department, Dr. Omolara Duke, said the new system aims to enhance governance, transparency, and facilitate a market-driven exchange rate.
EFEMS is set to replace the current manual system, with all authorized dealers required to conduct foreign exchange transactions through the electronic platform starting December 1, 2024. A two-week test run is scheduled for November 2024.
The CBN expects EFEMS to reduce speculative activities, eliminate market distortions, and provide improved oversight capabilities.
Real-time prices and buy/sell orders data will be published, and market participants will be guided by the Nigerian FX Code and revised Market Operating Guidelines.
Authorized dealers must comply with existing guidelines and regulations and complete necessary documentation, training, and system integrations before the go-live date.
This development marks a significant step towards modernizing Nigeria’s foreign exchange market.
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