Tony Chukwunyem 
The Central Bank of Nigeria (CBN) on Thursday announced that it has introduced the Electronic Foreign Exchange Matching System (EFEMS) for forex transactions in the Nigerian Foreign Exchange Market (NFEM). A circular signed by the apex bank’s Director , Financial Markets Department, Omolara Duke, said the EFEMS will be implemented not later than December 1, 2024, adding that there will be a two-week test run in the month of November.
According to the circular, authorised dealers would subsequently conduct all forex transactions in the interbank forex market on the Electronic Foreign Exchange Matching System (EFEMS) approved by the CBN, “where transactions will be reflected immediately.” The statement said: “ The new system is expected to enhance governance, transparency, and facilitate a gradual market driven exchange rate that will be accessible to the public.
The development is expected to reduce speculative activities, eliminate market distortions and give the CBN improved oversight capabilities to effectively regulate the market.” It added: “The CBN will publish real time prices and buy/sell orders data from the system and in collaboration with the Financial Markets Dealers Association (FMDA), publish the rules for the EFEMS. The Nigerian FX Code and revised market operating guidelines for the Nigeria forein exchange market will also provide guidance to market participants.”
