The Central Bank of Nigeria (CBN) has announced a December 1 go-live date for the Electronic Foreign Exchange Matching System (EFEMS) introduced to manage foreign exchange (FX) transactions in the Nigerian FX market.
The system is set to go live by December 1, 2024, following a two-week test run in November, according to the apex bank.
EFEMS will require authorised dealers to carry out all FX transactions in the interbank market electronically, with transactions immediately reflected on the platform, according to the CBN.
“The new system,” the apex bank says, “is expected to enhance governance, transparency and facilitate a market-driven exchange rate that will be accessible to the public. This development is expected to reduce speculative activities, eliminate market distortions and give the CB improved oversight capabilities to effectively regulate the market.
“CBN will 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. The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also provide guidance to market participants.”
Additionally, the CBN, in partnership with the Financial Markets Dealers Association (FMDA), says it will release operational rules for EFEMS. The Nigerian FX Code and revised Market Operating Guidelines will also serve as references for participants in the foreign exchange market.
The banking regulator says it has instructed authorized dealers to ensure all necessary documentation, training, and system integrations are completed ahead of the system’s official launch. Dealers must also comply with existing regulations governing the Nigerian foreign exchange market.
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