CBN Launches EFEMS for FX Transactions
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has launched the Electronic Foreign Exchange Matching System (EFEMS) for foreign exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM).
The system will be fully implemented from December 1, 2024, with a two-week test run scheduled for November 2024.
In a circular issued by Dr. Omolara O. Duke, Director of the CBN’s Financial Markets Department, it was disclosed that “Authorised Dealers will 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 EFEMS aims to enhance governance, transparency, and facilitate a market-driven exchange rate accessible to the public, while also reducing speculative activities and market distortions.
The CBN will provide real-time pricing data and work with the Financial Markets Dealers Association (FMDA) to publish rules for the system. Authorised Dealers are required to comply with existing guidelines and ensure readiness ahead of the official launch.
