The Central Bank of Nigeria (CBN) has unveiled the Nigeria Foreign Exchange (FX) Code to strengthen the nation’s foreign exchange market and address emerging risks in the evolving financial landscape. Drawing inspiration from the Global FX Code and best practices worldwide, the FX Code aims to enhance market efficiency, transparency, and integrity.
According to the CBN, the Code is designed to promote a fair, liquid, and transparent FX market, fostering confidence among diverse market participants. It outlines six key principles: ethics, governance, execution, information sharing, risk management and compliance, and settlement processes. The Code also emphasizes strict anti-money laundering measures to protect the domestic and global financial systems.
The FX Code applies to authorized dealers, banks, and other financial institutions engaged in wholesale FX trading. The CBN expressed optimism that the new guidelines would reinforce Nigeria’s flexible exchange rate regime and align the country’s FX market with global standards, ensuring efficient and competitive pricing for all stakeholders.