CBN Launches Electronic Foreign Exchange Matching System to Address Distortion and Speculation in FX Transactions
The Central Bank of Nigeria (CBN) has announced the launch of a new electronic foreign exchange matching system (EFEMS) designed to enhance transparency and governance in the foreign exchange market.
In a circular released on Thursday by Omolara Duke, CBN’s Director of the Financial Markets Department, it was stated that the system is set to go live by December 1, 2024, with a two-week testing period planned for November.
“Authorised Dealers would subsequently conduct all foreign exchange transactions in the interbank FX market on the Electronic Foreign Exchange Matching System approved by the CBN where transactions will be reflected immediately,” the CBN stated.
The EFEMS aims to establish a more market-driven exchange rate and improve transparency, ensuring that it will ultimately be 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,” the CBN added.
As part of its initiative to enhance the FX market, the CBN also announced that real-time prices and buy/sell order data will be published through the new system.
In partnership with the Financial Markets Dealers Association (FMDA), the CBN will provide guidelines for the operations of EFEMS.
“The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also provide guidance to market participants,” the CBN noted.
The apex bank further instructed authorized dealers to comply with all existing guidelines and regulations governing the FX market.
In anticipation of the EFEMS launch, the CBN advised these dealers to complete all necessary documentation, training, and system integrations before the go-live date.
You may be interested

Military Kills 1,770 Terrorists, Arrests Over 3,000 In North-West – CDS
gisthub - Apr 25, 2025The Chief of Defence Staff, General Christopher Musa, has disclosed that the Nigerian Armed Forces neutralised at least 1,770 terrorists and arrested…

Bloom PFM earns ISO certification
gisthub - Apr 25, 2025Bloom PFM, a Nigerian facility management firm, has earned the ISO 9001:2015 certification, marking a significant step in its pursuit of quality and…

Kenyan Woman Shot Dead By Her Babydaddy After Domestic Squabble In The US
gisthub - Apr 25, 2025A tragic incident occurred in the United States on Tuesday, April 22, 2025, when Hulda Bochere Mosiori, a 42-year-old mother of four from…
Most from this category

Killings: Alia Guarantees Corps Members’ Security In Benue
gisthub - Apr 25, 2025
Akpabio Heads Nigerian Delegation To Pope Francis’ Funeral
gisthub - Apr 25, 2025
Russia Detains Romanian Suspected of Espionage for Ukraine
gisthub - Apr 25, 2025
Leave a Comment