In a statement issued by Omolara Duke, the Director, Financial Markets Department , the EFEMS will be implemented latest by Dec.1.
According to the CBN, the introduction of EFEMS is expected to enhance governance, transparency, and facilitate a market driven exchange rate that would be accessible to the public.
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“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,” she said.
She said that there would be a two-week test run in November, adding that the apex bank would publish real time prices when the EFEMS starts becomes operational.
She said that the CBN would also buy and sell orders 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 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.
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“They should ensure that all necessary documentation, training, and systems integrations are concluded ahead of the go live date,” she said.
The launch of EFEMS is part of the CBN’s larger initiative to reduce speculative activities that can distort the true value of the Nigerian naira. Speculation in the foreign exchange market has caused significant volatility, widening the gap between official and parallel market rates. By implementing a system that provides real-time transparency, the CBN aims to curb the influence of speculators who manipulate market prices for their own benefit.
