CBN Unveils Nigeria’s FX Code to Promote Transparency, Fairness
The Central Bank of Nigeria (CBN) has launched Nigeria Foreign Exchange Code (FX Code) to promote transparency and fairness in the foreign exchange market.
Speaking at the launch on Tuesday, the CBN Governor, Olayemi M. Cardoso, noted the importance of the FX Code in establishing a framework for integrity and efficiency.
“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. It is a firm signal that business-as-usual will no longer suffice,” he stated.
He said the FX Code is built on six core principles—Ethics, Governance, Execution, Information Sharing, Risk Management and Compliance, and Confirmation and Settlement Processes.
According to him, these principles align with international standards while addressing Nigeria’s unique challenges.
The CBN Governor also highlighted the progress recorded through recent financial reforms, such as the introduction of the Electronic Foreign Exchange Matching System (EFEMS) in December 2024.
“Since its launch, the naira has appreciated significantly—from ₦1,663.90 on December 2, 2024, to ₦1,536.72 as of yesterday,” he revealed.
He further noted that the CBN’s reforms, including unifying exchange rate windows and recalibrating monetary policy tools, have been pivotal in restoring order and credibility to the FX market. External reserves, which grew by 12.74% to reach $40.68 billion by the end of 2024, reflect the success of these measures.
Cardoso called on all market participants to embrace the FX Code’s guiding principles and stressed that adherence is not optional.
“The era of opaque practices is over. We will not hesitate to act against any institution or individual that undermines the integrity of our financial markets,” he warned.
Acknowledging the support of the Financial Markets Dealers Association (FMDA) and the Global Foreign Exchange Committee (GFXC), the Governor expressed gratitude for their contributions to capacity building and the successful implementation of the FX Code.
The highlight of the event was the formal signing of the FX Code, symbolising a collective pledge by stakeholders to uphold transparency, ethical conduct, and fairness in the financial ecosystem.
