The Central Bank of Nigeria (CBN) has introduced new guidelines for foreign exchange trading through Matching System (EFEMS), starting from November 25, 2024.
The order, signed by Dr. Omolara Duke, Director of the Financial Markets Department, aims to improve Nigeria’s foreign exchange market to be more transparent, efficient, and compliant.
Following the new guidelines, the CBN now mandates a minimum trade value of $100,000 for interbank foreign exchange deals, with additional trades needing to be at least $50,000. This method is intended to set a consistent trade size and lower financial risks.
Bloomberg’s BMatch will be the main platform for these foreign exchange transactions. Trading will be allowed from 9:00 AM to 4:00 PM West Africa Time on weekdays. At first, the system will only handle trades between the Nigerian naira and the US dollar.
Only banks approved by the CBN can take part, and they need to sign contracts with the platform provider, keep correct records, and follow certain rules for credit and payments.
The CBN stressed that not following the rules could lead to serious consequences, including possible release of trading data. The ultimate goal is to enhance operational efficiency, improve market transparency, and provide better oversight of foreign exchange transactions in Nigeria.
