The Central Bank of Nigeria (CBN) has approved the Nigerian Foreign Exchange (FX) Code, a regulatory framework designed to foster ethical practices, transparency, and stability within the country’s FX market.
An official statement claims that the FX Code acts as a guide for approved dealers, guaranteeing that they uphold the greatest standards of ethics and professionalism in their dealings with foreign currencies.
The CBN emphasizes that the FX Code is part of ongoing efforts to improve market operations and build confidence in Nigeria’s FX ecosystem. It provides clear directives for market participants, ensuring a fair and transparent trading environment.
This initiative comes as Nigeria’s FX market faces challenges, including currency fluctuations and irregular trading practices that impact businesses and investors.
The official launch of the FX Code takes place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja. The event will bring together key players in the financial sector, including representatives from regulatory bodies and banking institutions.
The CBN states that this initiative aims to:
- Boost investor confidence by ensuring ethical FX trading practices.
- Strengthen Nigeria’s financial system amid global economic challenges.
- Improve Nigeria’s attractiveness as an investment destination by fostering a more stable FX market.
The FX Code aligns with other recent measures by the CBN to enhance Nigeria’s foreign exchange system:
- In August 2024, the CBN auctions $876.26 million to end-users through 26 commercial banks to support the naira and reduce FX volatility.
- The Electronic Foreign Exchange Matching System (EFEMS) launches to enhance transparency in FX transactions.
In order to ensure complete compliance and support Nigeria’s economic stability, the CBN encourages banks and market players to become acquainted with the new guidelines as the FX Code implementation draws near.
