
By Abidemi Samuel
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The Central Bank of Nigeria (CBN) has given the green light for the release of the Nigerian Foreign Exchange (FX) Code, a landmark move aimed at promoting ethical conduct and transparency in the country’s foreign exchange market.
This development is particularly significant, given the recent fluctuations of the naira against the dollar in the FX market. According to the CBN, the FX Code will serve as a vital guideline for the banking industry, ensuring that
authorized dealers uphold the highest standards of professionalism and integrity when conducting FX transactions. The Code is designed to enhance the stability and integrity of Nigeria’s FX market, which has experienced volatility in recent years due
to issues such as currency devaluation and irregularities in FX transactions. The CBN will formally launch the FX Code on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja. This launch is part of the CBN’s ongoing efforts to strengthen the governance and transparency of Nigeria’s FX market.
In November 2024, the CBN introduced revised guidelines for the Nigerian Foreign Exchange Market (NFEM), which require bank boards, CEOs, and Chief Compliance Officers to annually attest to the Nigeria FX Code of Ethics and Conduct. The revised guidelines aim to deepen the foreign exchange market following the consolidation of all official FX market windows.
Authorized dealers are now required to facilitate FX transactions for firms and individuals while ensuring compliance with regulations. This includes conducting due diligence, providing transparent pricing, and offering market access through digital solutions.
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