EFEMS: CBN launches new guidelines for Interbank FX trading

The Central Bank of Nigeria (CBN) has introduced new guidelines for foreign exchange trading through its Electronic Foreign Exchange Matching System (EFEMS), effective November 25, 2024. Dr. Omolara Duke, Director of the Financial Markets Department, signed the directive to improve transparency, efficiency, and compliance in Nigeria’s foreign exchange market.

Key highlights of the new guidelines include:

Trading Requirements:

The CBN now requires a minimum trade value of $100,000 for interbank foreign exchange transactions, with incremental trades of at least $50,000. This approach aims to standardize trade sizes and reduce financial risks.

Platform and Timing:

Bloomberg’s BMatch will serve as the official platform for foreign exchange transactions. Trading will be permitted from 9:00 AM to 4:00 PM West Africa Time on business days. Initially, the system will only support transactions between the Nigerian naira and the US dollar, though this may expand in the future.

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