CBN Fixes $100,000 Minimum Trade For Banks On Forex Platform

This directive, dated November 25, 2024, was signed by Dr. Omolara Duke, CBN’s Director of the Financial Markets Department.

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Dr. Duke explained that this move is part of the CBN’s efforts to enhance transparency, efficiency, and regulatory compliance within Nigeria’s foreign exchange market.

The EFEMS platform is designed to optimize interbank FX trading, minimize counterparty risks, and ensure alignment with CBN regulations.

Additionally, CBN has appointed Bloomberg’s BMatch as the official order-matching platform for interbank transactions. Trading will take place on business days from 9:00 am to 4:00 pm West Africa Time.

The $100,000 minimum trade value will be accompanied by increments of $50,000.

The EFEMS will initially support spot FX transactions involving the Nigerian naira and the US dollar, with the CBN retaining the discretion to introduce additional currency pairs when necessary.

Participation in the EFEMS is restricted to authorised dealer banks licensed by the CBN. Other institutions seeking to join must first obtain prior approval from the CBN.

These institutions are also required to enter into agreements with the CBN-approved platform provider, maintain accurate profiles, and operate within specified credit and settlement limits.

A 30-day notice is required for withdrawal from the platform, and all outstanding obligations must be settled before departure.

Trades conducted on the platform will remain anonymous until matched, with counterparty details disclosed only after the transaction is completed, in accordance with settlement protocols.

Transactions that exceed the prescribed limits or fall outside EFEMS parameters must be promptly reported and logged in the FX blotter within 10 minutes.

The CBN has stressed that it will actively monitor all transactions on EFEMS to ensure market integrity and transparency.

Participants are obligated to submit daily reports on trade volumes, settlement statuses, and counterparties.

Additionally, the CBN reserves the right to publish aggregated or disaggregated trade data for market analysis, in line with confidentiality agreements.

Any breach of EFEMS rules or related regulations will result in severe penalties, including suspension or revocation of access rights.

The CBN also noted that it will periodically assess the platform’s operations to ensure it remains efficient and compliant with its directives.

The CBN announced that the Bloomberg BMatch system will officially launch as the EFEMS for foreign exchange trading on December 2, 2024.

CBN Fixes $100,000 Minimum Trade For Banks On Forex Platform

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CBN Fixes $100,000 Minimum Trade For Banks On Forex Platform

Read Also: CBN Hikes Interest Rate To 27.5%

Read Also: Tinubu Reacts As Port Harcourt Refinery Commences Crude Oil Processing, Gives Fresh Directive To NNPCL

For More Information And News Update, Join Informant Online WhatsApp Channel With Link Below:

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