The Central Bank of Nigeria (CBN) says it is introducing Electronic Foreign Exchange Matching System (EFEMS) for foreign exchange transactions in the nation’s Foreign Exchange Market.
Announcing the introduction, a circular to authorised dealers signed by the Director, Financial Markets Department of the apex bank, Dr. Omolara Duke, said the new system aims to enhance governance, transparency, and facilitate a market-driven exchange rate.
EFEMS the circular notes aims to replace the current manual system, with all authorized dealers required to conduct foreign exchange transactions through the electronic platform starting December 1, 2024. A two-week test run is scheduled for November 2024.
EFEMS the circular further adds is expected to reduce speculative activities, eliminate market distortions, and provide improved oversight capabilities.
Real-time prices as well as buy/sell orders data will be published, and market participants will be guided by the Nigerian FX Code and revised Market Operating Guidelines.
This development marks a significant milestone towards modernizing Nigeria’s foreign exchange market.
Authorized dealers must comply with existing guidelines and regulations and complete necessary documentation, training, and system integrations before the go-live date.