The Central Bank of Nigeria (CBN) has disclosed plans to implement an Electronic Foreign Exchange Matching System (EFEMS), a new platform that is expected to overhaul the nation’s foreign exchange market. The system, aimed at promoting transparency and market-driven rates, will officially be launched on December 1, 2024, following a two-week testing phase set to begin in November.
According to a circular signed by Omolara O. Duke, Director of the Financial Markets Department at the CBN, all authorized foreign exchange dealers will be required to use the EFEMS platform for all foreign exchange transactions. This new system is expected to ensure that every transaction is promptly recorded and visible in the market.
The EFEMS is designed to foster a more transparent and efficient execution of foreign exchange trades within Nigeria’s interbank market, while also enabling the public to easily access a market-driven exchange rate. The CBN believes that this will create a more robust foreign exchange market and improve the overall confidence in Nigeria’s financial system.
The system’s introduction aligns with the CBN’s ongoing efforts to stabilize the naira and improve the transparency and accessibility of foreign exchange transactions in the country.
Further details about the testing phase and how authorized dealers will integrate the EFEMS into their operations are expected to be released in the coming weeks.
