The Central Bank of Nigeria (CBN) has announced its approval for the release of the Nigerian Foreign Exchange (FX) Code. The official launch of the Code is scheduled for next week in Abuja.
In a statement, the CBN indicated that the Code is intended to serve as a framework for the banking sector, aimed at fostering ethical practices among authorized dealers within the nation's FX market.
The CBN stated: “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 the 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.”
Nigeria's financial scene has gone through some pretty impressive changes over the years. But with those changes, some weaknesses and risks have popped up too.
To tackle these issues, the FX Code was created, aiming to set standards that will boost the overall performance of the foreign exchange market.
With the FX Code in place, we can expect smoother market operations, showing Nigeria's dedication to keeping a flexible exchange rate system.
The FX Code is all about fostering a strong, fair, liquid, open, and transparent market where a variety of participants can confidently trade at competitive prices that reflect the latest market info, all while sticking to global standards and best practices.
This code is meant for Market Participants, which include banks licensed by the Central Bank of Nigeria under the CBN Act 2007 and the Bank and Other Financial Institutions Act (BOFIA) 2020, who are involved in the wholesale foreign exchange business as part of their licensed activities.