The Central Bank of Nigeria (CBN) has announced the launch of an electronic foreign exchange matching system (EFEMS) for FX transactions, set to be implemented by December 1.
In a circular issued on Thursday October 3, Omolara Duke, Director of the CBN’s Financial Markets Department, stated that a two-week trial run would take place in November ahead of the full implementation.
The CBN highlighted that following the test period, all authorised dealers must conduct their foreign exchange transactions through the EFEMS, which will reflect transactions immediately. The system is designed to enhance governance, transparency, and promote a market-driven exchange rate accessible to the public.
According to the CBN, the new system will help curb speculative activities, eliminate market distortions, and provide better regulatory oversight.
The bank also announced it would publish real-time prices and buy/sell order data from the system. In collaboration with the Financial Markets Dealers Association (FMDA), the CBN will release the rules for EFEMS.
Additionally, the Nigerian FX Code and updated Market Operating Guidelines will guide participants in the market. Authorized dealers are expected to adhere to all existing regulations, with CBN urging them to complete the necessary documentation, training, and systems integration ahead of the official launch date.
