The Governor of Central Bank of Nigeria, CBN, Olayemi Cardoso has presently launched the Nigeria Foreign Exchange Code (FX Code), emphasising integrity, fairness, transparency and efficiency as critical pillars for Nigeria’s economic growth and stability.
Accotding to CBN, the FX Code is built on six core principles: ethics, governance, execution, information sharing, risk management and compliance, as well as confirmation and settlement processes. These principles align with international standards while addressing Nigeria’s unique challenges.
“The FX Code represents a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency, and good governance in our foreign exchange market. – Cardoso
“The era of opaque practices is over… The FX Code marks a new era of compliance and accountability… Under CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions* – Cardoso
“Our journey towards market reform is already yielding results. The year 2024 was marked by structural reforms which sought to return the naira to a freely determined market price and ease volatility as several distortions were removed from the market.”- Cardoso
Beyond the foreign exchange market, the FX Code forms part of the CBN’s renewed focus on compliance across financial sectors. The code’s six guiding principles & 52 sub-principles are intended to become the benchmark for conduct across all participating institutions.
Commending the launch, key stakeholders, including bank chiefs and financial market leaders, pledged their commitment to the CBN FX Code, culminating in the formal signing by participating banks.
…stay tuned for more!