The Central Bank of Nigeria (CBN) announced the introduction of an electronic foreign exchange transaction matching system, known as the Electronic Foreign Exchange Matching System (EFEMS), to enhance transparency in the official foreign exchange market. The system is scheduled to take effect on Dec. 1.

According to an Oct. 2 statement from the bank, the implementation will be preceded by a two-week test run in November. Once the test is complete, authorized dealers will be required to conduct transactions using the system, which reflects them in real-time.

The announcement comes amid Nigeria’s ongoing efforts to stabilize the local currency, which has depreciated by more than 60% in 2024. As reported by Bitcoin.com News, the CBN has injected millions of dollars into the Nigerian Foreign Exchange Market (NFEM) and sold U.S. dollars at discounted exchange rates to bureaux de change operators.

The CBN expects the new system to reduce speculative activities and eliminate market distortions. It will also enhance the central bank’s ability to effectively regulate the market.

“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 rules for EFEMS. The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also provide guidance to market participants,” the central bank said.

Meanwhile, the CBN statement instructed authorized dealers to comply with regulations governing the foreign exchange market and to ensure all documentation, training, and systems integrations are complete before the EFEMS goes live.

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