Central Bank of Nigeria Launches Electronic Foreign Exchange System, Sets $100,000 Minimum Trading Limit

The Central Bank of Nigeria (CBN) has announced the introduction of the Electronic Foreign Exchange Matching System (EFEMS), aimed at fostering greater transparency, fairness, and regulatory compliance in the country’s foreign exchange (FX) market.

A key feature of this new system is a minimum tradable amount of $100,000, as confirmed by a statement shared on the CBN’s X (formerly Twitter) account.

Starting December 2, 2024, the CBN will transition FX trading to the Bloomberg BMatch platform. This change is expected to enhance market transparency, improve pricing, and streamline operations, according to the central bank.

The CBN emphasized that the new system will support improved market integrity, facilitate better price discovery, and provide more efficient FX trading for participants. Additionally, participants are required to submit daily transaction reports to the CBN, which should include details on trade volumes, counterparties, and settlement status.

Participation in the EFEMS is restricted to authorized dealer banks licensed by the CBN, with other institutions needing prior approval before joining. The central bank aims to use the platform to monitor market performance and improve data management, ensuring uniformity and ease of trading among market players.