The Central Bank of Nigeria (CBN) has unveiled a new initiative aimed at curbing speculation in the Nigerian Foreign Exchange Market.
The Electronic Foreign Exchange Matching System (EFEMS) is set to be implemented by December 1,and promises to enhance governance and transparency within the market.
According to Omolara Duke, Director of the Financial Markets Department at CBN, "This development is expected to reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market."
EFEMS will require all foreign exchange transactions to be conducted by authorized dealers on this new platform. A two-week test run is scheduled for November, during which real-time prices and buy/sell orders data will be published. The CBN, in collaboration with the Financial Markets Dealers Association (FMDA), will also release the rules governing EFEMS.
Duke emphasized the importance of compliance, stating, "Authorised dealers are 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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