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CBN to launch FX code on January 28 to enhance market transparency

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The Central Bank of Nigeria (CBN) has announced that it will officially unveil the Nigerian Foreign Exchange (FX) Code on January 28, 2025.

Diaspora digital media (DDM) gathered that the FX Code is designed to establish a comprehensive framework that promotes ethical behavior among authorized dealers in the Nigerian Foreign Exchange Market (NFEM).

The CBN aims to improve transparency, governance, and integrity within the FX market through the implementation of this code.

The formal launch event for the Code will take place at the CBN Head Office Auditorium in Abuja.

The initiative is part of a broader strategy to reinforce the stability of Nigeria’s FX market, following the introduction of revised guidelines in November 2024.

These updates focus on ensuring that foreign exchange transactions are carried out in a manner that fosters fairness and transparency, particularly in light of recent structural changes to the market.

One of the key provisions of the revised FX guidelines is that the boards of directors, along with Chief Executive Officers (CEOs) and Chief Compliance Officers of banks, will be required to annually attest to the Code of Ethics and Conduct.

This attestation serves as a public commitment to uphold the principles of the market, ensuring that all parties involved adhere to the regulatory framework set out by the CBN.

The aim is to further solidify trust in the Nigerian FX market, making it more robust and globally competitive.

In addition to the new attestation requirement, the guidelines also emphasize the role of authorized dealers in promoting transparency.

These dealers will be required to carry out due diligence, offer clear pricing, and facilitate access to FX through innovative digital platforms.

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To protect the integrity of the market, all FX transactions must take place through authorized channels, and engaging with unlicensed intermediaries is strictly forbidden.

Furthermore, the revised framework includes specific provisions for Bureaux de Change (BDC) operators.

Licensed BDCs will be permitted to acquire code from authorized dealers in order to meet customer demands within CBN-set limits.

This inclusion ensures that the BDCs also operate within the bounds of the new regulatory framework, guaranteeing that all FX dealings, including those by International Money Transfer Operators (IMTOs) and authorized dealers, comply with the terms of their licenses and the overarching FX Code.

With the consolidation of FX market windows and these new regulations, the CBN is taking significant steps toward improving the overall structure and transparency of Nigeria’s foreign exchange market.


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