CBN introduces electronic foreign exchange matching system, offers reasons
by Ganiyu Mubarak · The Eagle OnlineThe Central Bank of Nigeria has announced the introduction of an Electronic Foreign Exchange Matching System for Foreign Exchange transactions in the Nigerian Foreign Exchange Market.
Omolara Duke, the Director, Financial Markets Department of the CBN, said the EFEMS will be implemented latest by December 1.
Duke said that the new system was expected to enhance governance, transparency, and facilitate a market driven exchange rate that would be accessible to the public.
She said: “This development is expected to reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market.
“Authorised dealers will subsequently conduct all foreign exchange transactions in the interbank Fx market on the EFEMS approved by the CBN where transactions will be reflected immediately.”
Duke said that there would be a two weeks test run in November, adding that the apex bank would publish real time prices when the EFEMS becomes operational.
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She said that the CBN would also buy and sell orders from the system and in collaboration with the Financial Markets Dealers Association publish the rules for the EFEMS.
She said: “The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also provide guidance to market participants.
“Authorised dealers are, therefore, required to comply with extant guidelines and regulations governing the Nigeria foreign exchange market.
“They should ensure that all necessary documentation, training, and systems integrations are concluded ahead of the go live date.”
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