The Central Bank of Nigeria (CBN) has announced the introduction of an Electronic Foreign Exchange Matching System (EFEMS) for transactions in the Nigerian Foreign Exchange Market (NFEM). According to a statement by Omolara Duke, Director of the Financial Markets Department, the new system will be fully implemented by December 1, 2024.
The EFEMS aims to improve governance, enhance transparency, and foster a market-driven exchange rate, making it more accessible to the public. Duke highlighted that the system is designed to reduce speculative activities, eliminate market distortions, and give the CBN better oversight to regulate the market effectively.
“All foreign exchange transactions in the interbank FX market will be conducted on the EFEMS, with transactions reflected immediately,” Duke stated. A two-week test run will be conducted in November before the system becomes operational, with real-time prices to be published by the CBN.
The CBN, in collaboration with the Financial Markets Dealers Association (FMDA), will establish guidelines for EFEMS, and the Nigerian FX Code will offer additional guidance to market participants. The CBN urged authorized dealers to ensure all necessary preparations, including documentation, training, and system integration, are completed ahead of the go-live date.
