CBN Introduces Electronic Foreign Exchange Matching System for Nigerian Forex Market

The Central Bank of Nigeria (CBN) has announced the upcoming implementation of the Electronic Foreign Exchange Matching System (EFEMS) for foreign exchange transactions in the Nigerian Forex Market (NFEM), set to launch by December 1, 2024.

In a circular signed by Omolara O. Duke, Director of the Financial Markets Department, the CBN indicated that a two-week test run will take place in November 2024. Following this, authorized dealers will be required to conduct all interbank foreign exchange transactions through the new system, ensuring immediate reflection of transactions.

The CBN anticipates that EFEMS will enhance governance and transparency while facilitating a market-driven exchange rate accessible to the public. This development aims to reduce speculative activities, eliminate market distortions, and provide the CBN with improved oversight capabilities for effective regulation of the market.

Additionally, the CBN will publish real-time prices and buy/sell order data from the system. In collaboration with the Financial Markets Dealers Association (FMDA), the CBN will also publish the rules governing EFEMS. The Nigerian FX Code and revised Market Operating Guidelines will further guide market participants.

The CBN has urged authorized dealers to comply with existing guidelines and regulations governing the Nigerian foreign exchange market, ensuring that all necessary documentation, training, and systems integration are completed before the go-live date.

Written By; Christopher Emuakpeje

Likes:
0 0
Views:
26
Article Categories:
Business

Leave a Reply

Your email address will not be published. Required fields are marked *