The Central Bank of Nigeria has officially approved the Nigerian Foreign Exchange Code to promote ethical conduct and transparency in the country’s FX market.
The Code, announced on the CBN website on Wednesday, is intended to guide the banking sector by ensuring that authorized dealers maintain the highest standards of professionalism and integrity when conducting FX transactions.
The CBN emphasized that the introduction of the FX Code is part of its ongoing efforts to strengthen the stability and integrity of Nigeria’s foreign exchange market.
The FX Code will provide clear directives on the expectations for market participants, ensuring that the market operates fairly and transparently.
This move is especially important given the volatility in Nigeria’s FX market in recent years, characterized by currency devaluation and irregularities in FX transactions, which have had a negative impact on both investors and businesses.
“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 said.
The CBN has also scheduled the formal launch of the FX Code for Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
The event will be attended by key stakeholders from the banking and financial sectors, as well as representatives from regulatory bodies.
“The Bank will formally launch the Code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025,” the statement said.
By introducing this comprehensive set of guidelines, the CBN aims to boost the trust and confidence of both domestic and international investors in Nigeria’s FX market.
Analysts note that this initiative aligns with the bank’s broader strategy to maintain robust and resilient financial systems amid global economic challenges. Additionally, the FX Code is expected to contribute to the long-term sustainability and competitiveness of Nigeria’s economy.
