2023-12-18 | 1141600350

Banking Circular No.16 of 2023 - Introduction of Electronic Matching Systems (EMS) in the Interbank Foreign Exchange Market

The Central Bank of Kenya (CBK) has introduced electronic trading in the interbank foreign exchange market through Electronic Matching Systems (EMS), aiming to enhance efficiency and smooth operations. The CBK, in collaboration with market participants, has developed rules for EMS and emphasized the market-making obligation of commercial banks to establish an efficient market-clearing exchange rate. These changes, including the withdrawal of the maximum spread between indicative two-way quotes, are effective immediately.

Kenya

Central Bank of Kenya

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