2023-12-18

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

Effective immediately, the Central Bank of Kenya (CBK) has introduced Electronic Matching Systems (EMS) in the interbank foreign exchange (FX) market. This follows the announcement on August 29, 2023 regarding changes to operations in the FX market, such as the limit on tenor for swaps and minimum traded amounts. The CBK, in collaboration with market participants, has also developed a set of rules for Electronic Matching Systems (EMS) to enhance efficiency and smooth operation in the market. Consequently, the maximum spread between indicative two-way quotes set at Kes 20 cents previously will no longer apply, allowing for freely negotiated rates and prudent management of FX risk within prudential limits.

Kenya

Central Bank of Kenya

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