CBN Launches Electronic FX Matching System to Boost Transparency
The Central Bank of Nigeria (CBN) has introduced an Electronic Foreign Exchange Matching System (EFEMS) to streamline all foreign exchange (FX) transactions within the Nigerian Foreign Exchange Market (NFEM). The system, set to go live on December 1, 2024, will undergo a two-week test run in November.
According to a circular issued on October 2, 2024, by Dr. Jake Omolara O. Duke, Director of the CBN’s Financial Markets Department, EFEMS aims to enhance governance, transparency, and support a market-driven exchange rate accessible to the public. The system will allow real-time reflection of FX transactions, improving oversight and curbing market distortions.
The CBN stated that once operational, all interbank FX transactions will be conducted via EFEMS, with real-time updates on prices and buy/sell orders available to the public. The system will also assist the CBN in reducing speculative activities and providing better market regulation.
In collaboration with the Financial Markets Dealers Association (FMDA), the CBN will issue operational rules for EFEMS and publish revised market guidelines to ensure compliance among authorized dealers, who are required to complete system integration and training before the December launch.
