CBN introduces electronic matching system for FX transactions, to begin by December

Oct. 4, 2024 - Nairametrics

The Central Bank of Nigeria (CBN) has announced the introduction of an electronic matching system for foreign exchange transactions in the Nigeria FX market scheduled to begin from December 1, 2024. According to the CBN, authorized dealers must conduct all foreign exchange transactions through the CBN-approved system, with immediate transaction reflection.

The statement explained that the system will improve governance, transparency, and market-driven exchange rates, reducing speculation and market distortions. The statement reads, “The Central Bank of Nigeria (CBN) hereby announces the introduction of the Electronic Foreign Exchange Matching System (EFEMS), for Foreign Exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM) to be implemented no later than December 01, 2024.

By mandating its use, the CBN aims to tighten its regulatory oversight while addressing issues like speculation and volatility, thereby ensuring better management of the interbank foreign exchange market in Nigeria...