The Central Bank of Nigeria (CBN) has announced the launch of the Electronic Foreign Exchange Matching System (EFEMS) for Foreign Exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM), set to go live by December 1, 2024. A two-week test run is scheduled for November 2024.
The new system, approved by the CBN, aims to immediately reflect interbank FX market transactions, thereby enhancing governance and transparency while facilitating a market-driven exchange rate accessible to the public. According to Dr. Omolara O. Duke, Director of the Financial Markets Department, this initiative is designed to reduce speculative activities, eliminate market distortions, and provide the CBN with improved oversight capabilities for effective market regulation.
As part of the rollout, the CBN will publish real-time prices and buy/sell order data from the EFEMS. In collaboration with the Financial Markets Dealers Association (FMDA), the CBN will also release the operational rules for the new system. Additionally, the Nigerian FX Code and revised Market Operating Guidelines will serve as guidance for market participants.
Authorized Dealers are reminded to comply with existing guidelines and regulations governing the Nigerian foreign exchange market, ensuring all necessary documentation, training, and system integrations are completed ahead of the launch date.