CBN Introduces Electronic Foreign Exchange Matching System For FX Transactions
By Sunday Etuka, Abuja
The Central Bank of Nigeria (CBN) has announced the introduction of the Electronic Foreign Exchange Matching System (EFEMS), for Foreign Exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM).
CBN, in a Circular issued late on Thursday by the Director, Financial Markets Department, Omolara Duke said, the system would be implemented not later than December 01, 2024.
The apex bank further disclosed that there would be a 2-weeks test run in the month of November 2024, after which,
Authorised Dealers would conduct all foreign exchange transactions in the interbank Fx market on the Electronic Foreign Exchange Matching System approved by the CBN where transactions would be reflected immediately.
According to the Circular, the new system is expected to enhance governance, transparency and facilitate a market driven exchange rate that would be accessible to the public.
The development, it disclosed, is expected to reduce speculative activities, eliminate market distortions and give the CBN improved oversight capabilities to effectively regulate the market.
CBN said, it would publish real time prices and buy/sell orders data from the system, and in collaboration with the Financial Markets Dealers Association (FMDA), publish the rules for the EFEMS.
According to the apex bank, the Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market would also provide guidance to market participants.
“Authorised Dealers are therefore required to comply with extant guidelines and regulations governing the Nigeria foreign exchange market, and ensure that all necessary documentation, training, and systems integrations are concluded ahead of the go live date”, the Circular added.
