• About Us
  • Contact Us
  • Privacy & Policy
Thursday, October 9, 2025
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
Advertisement
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
  • National
  • Politics
  • Economy
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Columns
No Result
View All Result
Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history
No Result
View All Result

CBN Launches EFEMS to Combat Forex Market Distortions and Boost Transparency

Vincent Amadi by Vincent Amadi
October 4, 2024
in Economy, News
Reading Time: 3 mins read
A A
0
CBN Launches EFEMS to Combat Forex Market Distortions and Boost Transparency
Share on FacebookShare on TwitterShare on WhatsappShare on EmailShare on Telegram


On Thursday, the Central Bank of Nigeria (CBN) introduced a new system aimed at overhauling the foreign exchange (forex) market.

Known as the Electronic Foreign Exchange Matching System (EFEMS), this initiative is part of the CBN’s broader effort to tackle the distortions that have plagued the forex market, curb speculative activities, and instill greater transparency in the management of foreign exchange.
The details of this new policy were communicated in a circular signed by Omolara Duke, who serves as the Director of the Financial Markets Department at the CBN.

According to the circular, the EFEMS will revolutionize the way foreign exchange transactions are conducted within Nigeria’s interbank market.

Under the new system, authorized dealers—those entities allowed to engage in forex transactions—will be required to carry out all transactions using the EFEMS platform.

This platform has been specifically approved by the Central Bank to ensure that each transaction is instantly visible and accurately reflected in real-time.
A key aspect of this policy is its timeline for implementation. The CBN has stated that the new system will be fully operational no later than December 1, 2024.

However, in preparation for this shift, a two-week test period will take place in November 2024 to iron out any potential issues and ensure a smooth transition to the new framework.
In the statement, the CBN underscored the significance of the EFEMS. It emphasized that the system will not only improve market governance but will also foster transparency by making exchange rate mechanisms more accessible and understandable to the public.

Furthermore, the introduction of this system is seen as a crucial step in minimizing speculative trading, a practice that has historically contributed to the volatility of Nigeria’s forex market.

The bank’s statement read, “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.”
A notable feature of the EFEMS is its capability to provide real-time pricing. The CBN has announced that it will publicly display live prices and buy/sell orders, thereby increasing market visibility.

This means that market participants and stakeholders will have a clearer view of forex rates and transactions as they occur, leading to a more informed and balanced market environment.
In terms of regulatory oversight, the CBN is not working in isolation. It has partnered with the Financial Markets Dealers Association to outline the rules governing the use of the EFEMS.

Together, these two entities will ensure that the system operates smoothly and that market participants adhere to established guidelines.
In addition to the new system, the CBN has pointed to existing frameworks that will provide further guidance for those involved in the forex market.

Specifically, the Nigerian FX Code and the Revised Market Operating Guidelines will be key resources for understanding the regulatory expectations under the new system.

These documents are expected to guide authorized dealers and market participants, helping them align with the goals of the CBN’s forex market reforms.
In the final part of the circular, the CBN issued a directive to authorized dealers, stressing the importance of compliance with all current regulations governing the Nigerian foreign exchange market.

The central bank called on dealers to ensure that they have the necessary systems, documentation, and training in place well ahead of the December 1, 2024 rollout of the EFEMS.

The statement concluded with a clear mandate: “Authorised dealers are therefore required to comply with extant guidelines and regulations governing the Nigeria foreign exchange market and ensure that all necessary documentation, training, and systems integrations are concluded ahead of the go-live date.”
This new initiative by the CBN is seen as part of a broader strategy to strengthen Nigeria’s forex market and stabilize its economy by promoting more transparent and efficient trading practices.

Through these reforms, the CBN aims to foster a more open and regulated market, one that aligns with global best practices while addressing local challenges.

Vincent Amadi

Vincent Amadi

Related Posts

Naira Appreciates to N1,465/$ as External Reserves Reserves Jump to $42.4bn
Economy

Naira Appreciates to N1,465/$ as External Reserves Reserves Jump to $42.4bn

4 days ago
BREAKING NEWS: PENGASSAN Declares Nationwide Strike.
Economy

BREAKING NEWS: PENGASSAN calls off strike

1 week ago
Kwara govt denies claims DSS disarmed vigilantes before Oke-Ode attack
National

Kwara govt denies claims DSS disarmed vigilantes before Oke-Ode attack

1 week ago
Boko Haram kills one, burn several homes in Borno community
National

Boko Haram kills one, burn several homes in Borno community

1 week ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

NATIONS NEWS

I’m the most important politician in South East – Orji Kalu declares
National

I’m the most important politician in South East – Orji Kalu declares

6 minutes ago
Akpabio, Moro in heated argument over senators’ defections
National

Akpabio, Moro in heated argument over senators’ defections

9 minutes ago
Obasanjo wanted third term, he can’t deny it now – Orji Kalu
National

Obasanjo wanted third term, he can’t deny it now – Orji Kalu

12 minutes ago
17 Soldiers Killed as Bandits Attack Military Bases in Niger State
National

Why Boko Haram remains a bold threat in Nigeria – Former NAF spokesman

1 day ago
‘Dangote not above Nigerian labour law’ – NLC blasts VP Shettima
National

‘Dangote not above Nigerian labour law’ – NLC blasts VP Shettima

1 day ago
Politicians disappointed as Yakubu steps down as INEC chair – Ex-presidential aspirant
National

Politicians disappointed as Yakubu steps down as INEC chair – Ex-presidential aspirant

1 day ago

POLITICS

Akpabio, Moro in heated argument over senators’ defections

Akpabio, Moro in heated argument over senators’ defections

9 minutes ago
Court Orders INEC to Prosecute 2023 Election Offenders

Fix INEC before 2027 elections – Political leaders urge Tinubu

2 days ago
Taraba gov, Kefas set to defect to APC

Taraba gov, Kefas set to defect to APC

3 days ago
2027: Nigerians don’t trust INEC – ADC

2027: Nigerians don’t trust INEC – ADC

4 days ago
2027: Tinubu will not win if Atiku, Jonathan contest – Ex-VP’s aide

2027: Tinubu will not win if Atiku, Jonathan contest – Ex-VP’s aide

4 days ago
Gary Lineker apologises to Osimhen over past comment

Gary Lineker apologises to Osimhen over past comment

5 days ago

YOUR ECONOMY

Naira Appreciates to N1,465/$ as External Reserves Reserves Jump to $42.4bn
Economy

Naira Appreciates to N1,465/$ as External Reserves Reserves Jump to $42.4bn

4 days ago
BREAKING NEWS: PENGASSAN Declares Nationwide Strike.
Economy

BREAKING NEWS: PENGASSAN calls off strike

1 week ago
You’re scaring off investors – Senator Karimi warns PENGASSAN over feud with Dangote Refinery
Economy

You’re scaring off investors – Senator Karimi warns PENGASSAN over feud with Dangote Refinery

1 week ago
BUA Chairman: Naira Will Settle at N1,300/$ by December 2025
Economy

BUA Chairman: Naira Will Settle at N1,300/$ by December 2025

2 weeks ago
IMF, World Bank, puppeteers behind Nigeria’s full fuel subsidy removal – Falana
Economy

IMF, World Bank, puppeteers behind Nigeria’s full fuel subsidy removal – Falana

3 weeks ago
Dangote Refinery Begins Distribution of Petrol Nationwide
Economy

Dangote Refinery begins nationwide distribution of petrol

3 weeks ago

E & P

EPL: They’ll be beaten – Paul Scholes predicts winner in Liverpool vs Man Utd
Sports

EPL: They’ll be beaten – Paul Scholes predicts winner in Liverpool vs Man Utd

by Steven Atogi
1 day ago
0

Manchester United legend, Paul Scholes has predicted the Premier League match between the Red Devils and Liverpool. Liverpool will host...

EPL: Amorim should use Mbeumo as striker over Sesko — Owen

EPL: Amorim should use Mbeumo as striker over Sesko — Owen

6 days ago
Xavi Hernandez hinted to replace Ruben Amorim at Old Trafford

Xavi Hernandez hinted to replace Ruben Amorim at Old Trafford

1 week ago
Dembele wins 2025 Ballon d’Or ahead of Yamal [Full list]

Dembele wins 2025 Ballon d’Or ahead of Yamal [Full list]

2 weeks ago
Paul Scholes Defends Amorim’s System, Slams Manchester United Recruitment System

Paul Scholes Defends Amorim’s System, Slams Manchester United Recruitment System

3 weeks ago
Lookman Wins Atalanta Player of the Month of September 2024

Siasia to Chelle: Rely on Lookman, Arokodare

4 weeks ago

YOUR THOUGHT & HISTORY

NASS Rubber-Stamp Tinubu: PDP Chieftain Blasts Legislature, Calls Akpabio ‘Unfit’
National

NASS Rubber-Stamp Tinubu: PDP Chieftain Blasts Legislature, Calls Akpabio ‘Unfit’

by Steven Atogi
4 days ago
The Union, the Tycoon, and the State: Dangote versus PENGASSAN War, A New Precedent for Nigerian Labour
Opinion

The Union, the Tycoon, and the State: Dangote versus PENGASSAN War, A New Precedent for Nigerian Labour

by Odini Brains
1 week ago
HOW MR EAZI, OTEDOLA’S SON-IN-LAW, BUILT AN 18-COUNTRY EMPIRE
Opinion

HOW MR EAZI, OTEDOLA’S SON-IN-LAW, BUILT AN 18-COUNTRY EMPIRE

by Odini Brains
1 month ago
Mr Eazi and Temi Otedola: A Love Story That Traveled Three Continents
National

Mr Eazi and Temi Otedola: A Love Story That Traveled Three Continents

by Odini Brains
1 month ago
The Rise And Fall Of Sports Institute, Isaka
Columns

The Rise And Fall Of Sports Institute, Isaka

by Tammy Opoki
2 months ago

Who we are

Umpirenews | Latest News, Politics, Breaking News, Nigeria and African history

Welcome to Umpire News, your go-to online newspaper dedicated to broadening perspectives and expanding the horizons of our numerous readers. Read more

Browse by Category

  • Columns
  • Economy
  • Editorial
  • Entertainment
  • International
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Trends

Recent News

I’m the most important politician in South East – Orji Kalu declares

I’m the most important politician in South East – Orji Kalu declares

October 9, 2025
Akpabio, Moro in heated argument over senators’ defections

Akpabio, Moro in heated argument over senators’ defections

October 9, 2025
  • About Us
  • Contact Us
  • Privacy & Policy

© 2024 Copyright Umpirenews. All rights reserved

No Result
View All Result
  • Home
  • National
  • Economy
  • Politics
  • Sports
  • Entertainment
  • Editorial
  • Opinion
  • Columns

© 2024 Copyright Umpirenews. All rights reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

🤑Join & Get Our Easter Gifts 🤑

Enter your NAME & Email NOW!!

Be among the 1st 100 lucky WINNERS to win our Amazing GIFTs this Easter Period as you READ our Daily hot NEWs & make meaningful comments and follow us on our social media handles.

Name
Enter your email address