ABUJA, Nigeria — The Central Bank of Nigeria (CBN) has rolled out guidelines for its Electronic Foreign Exchange Matching System (EFEMS), a move designed to foster transparency, fairness, and compliance in the foreign exchange (FX) market.
The apex bank announced that the Bloomberg BMatch platform would officially power FX trading from December 2, 2024, setting a minimum tradable amount at $100,000.
In a statement posted on its official X (formerly Twitter) account, the CBN emphasized the benefits of this transition:
“The CBN transitions FX trading to Bloomberg BMatch, promising enhanced transparency, fair pricing, and operational efficiency.”
The platform, according to the statement, will enhance market integrity, improve price discovery, and streamline FX trading among market participants.
Key Features and Requirements
The CBN outlined the following mandates for participants:
- Daily Reporting: Authorized dealers must submit daily transaction reports to the CBN, detailing trade volumes, counterparties, and settlement statuses.
- Restricted Participation: Only authorized dealer banks licensed by the CBN can participate. Other institutions seeking access must obtain prior approval.
The system aims to standardize FX trading processes, ensure seamless operations, and provide a centralized mechanism for monitoring market performance and managing data.
Aiming for Market Efficiency
By adopting Bloomberg BMatch, the CBN intends to promote operational uniformity while bolstering confidence in Nigeria’s FX trading landscape. This initiative also positions the regulator to monitor market trends more effectively, aligning with global best practices in currency trading.
As the December 2 rollout approaches, the policy is expected to reshape the FX trading ecosystem, creating a more transparent and efficient market environment.
