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The Central Bank of Nigeria (CBN) has introduced the Electronic Foreign Exchange Matching System (EFEMS), a new initiative designed to promote transparency, fairness, and efficiency in foreign exchange (FX) trading.
As part of the guidelines, the CBN has set the minimum tradable amount at $100,000, signaling a move towards streamlining the FX market.
Seamless FX Trading Through Bloomberg BMatch
In a statement shared on its official X account, the apex bank announced that the EFEMS will transition FX trading to the Bloomberg BMatch platform, effective December 2, 2024.
“The Bloomberg BMatch platform will boost market integrity, enhance price discovery, and ensure seamless FX trading among participants,” the statement read.
The platform is expected to offer improved operational efficiency and ensure fair pricing, fostering confidence in Nigeria’s FX market.
Guidelines for Participation
Participation in the EFEMS is restricted to authorised dealer banks licensed by the CBN. Other institutions seeking access to the platform must obtain prior approval from the regulator.
Additionally, the CBN requires daily submission of transaction reports, which must include details such as trade volumes, counterparties, and settlement statuses. This mandate aims to improve market monitoring and ensure compliance with trading standards.
Aims of the EFEMS
The EFEMS is part of the CBN’s broader strategy to:
- Enhance transparency in the FX market.
- Promote uniformity and ease of trading among participants.
- Strengthen data management for better market performance monitoring.
This initiative underscores the CBN’s commitment to modernizing the FX market, improving confidence among stakeholders, and aligning trading practices with global standards.
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