The Central Bank of Nigeria (CBN) has announced the launch of an Electronic Foreign Exchange Matching System (EFEMS) for Foreign Exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM), set to be implemented on December 1.
Omolara Duke, Director of the Financial Markets Department, stated that the new system aims to improve governance, and transparency, and facilitate a market-driven exchange rate 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,” Duke explained.
Under the EFEMS, all foreign exchange transactions in the interbank FX market will be conducted by authorized dealers on a platform approved by the CBN, allowing for immediate transaction reflection.
Duke also noted that there will be a two-week test run in November, during which the CBN will publish real-time prices once the system becomes operational. The apex bank plans to manage buy and sell orders through the EFEMS, working in collaboration with the Financial Markets Dealers Association (FMDA) to publish the system’s rules.
To ensure smooth implementation, Duke emphasized that the Nigerian FX Code and revised Market Operating Guidelines will guide market participants. Authorized dealers must comply with existing regulations governing the Nigerian foreign exchange market and ensure all necessary documentation, training, and system integrations are completed ahead of the launch date.
