New Telegraph

CBN Approves Release Of Nigerian Forex Code

The Central Bank of Nigeria (CBN), on Wednesday, announced that it had approved the release of the Nigerian Foreign Exchange (FX) Code.

In a statement posted on its website, the apex bank said that the Code, which is a guideline to the banking industry, “to promote ethical conduct of Authorised Dealers” in the foreign exchange market, would be formally launched in Abuja next Tuesday.

The statement read: “The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote ethical conduct of Authorised Dealers in the Nigerian Foreign Exchange Market.

The Bank will formally launch the Code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025.” New Telegraph reports that in a circular released in October last year, the CBN announced the introduction of the FX code, which it said was part of its ongoing efforts, “to enhance the integrity and functioning of Nigeria’s wholesale foreign exchange (FX) market.”

The statement said: “Over the years, Nigeria’s financial landscape has seen significant positive transformations. However, weaknesses and risks have also emerged.

In response, the FX Code was developed to address these challenges, setting standards that aim to strengthen the overall performance of the FX market.

The introduction of the FX Code is expected to facilitate better market operations, reinforcing Nigeria’s commitment to maintaining a flexible exchange rate regime.

“The FX Code is intended to promote a robust, fair, liquid, open, and appropriately transparent Market in which a diverse set of Market Participants, supported by resilient infrastructure, can confidently and effectively transact at competitive prices that reflect available market information in a manner that conforms to accepted global standards of behaviour and best practices.”

It further said: “The FX Code applies to Market Participants. These are banks licensed by the Central Bank of Nigeria under the CBN Act 2007 and Bank and Other Financial Institutions Act (BO – FIA) 2020 and engage in the wholesale foreign exchange business in Nigeria as part of their licensed business.

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