The Central Bank of Nigeria (CBN) has approved a new forex plan that will allow it collaborate with Financial Markets Dealers Association of Nigeria (FMDA) to reduce speculative activities in the market.
A circular released yesterday and approved by Director, Financial Markets Department, Omolara Duke, said the Electronic Foreign Exchange Matching System (EFEMS) for Foreign Exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM) will take effect on December 1, 2024.
The policy provided a two-weeks test run in the month of November 2024. According to her, the new policy provides that authorised dealers would subsequently conduct all foreign exchange transactions in the interbank Fx market on the Electronic Foreign Exchange Matching System approved by the CBN, where transactions will be reflected immediately.
“The new system is expected to enhance governance, transparency and facilitate a market- driven exchange rate that will be accessible to the public.
This development is expected to reduce speculative activities, eliminate market distortions and give the CBN improved oversight capabilities to effectively regulate the market,” she said.
