The Central Bank of Nigeria, CBN, has approved the release of a new FX code aimed at boosting ethical conduct and ensuring a more transparent foreign exchange market. The code is designed to create a foreign exchange market in which authorised dealers carry out transactions with the highest level of professionalism and integrity.
The creation of the new code comes at a time the Nigerian FX market is facing a number of challenges and volatility issues with problems like currency devaluation and irregularities in FX transactions affecting both investors and businesses.
The CBN is hoping to address these issues and create a more transparent FX system through the new FX code which would ensure the market operates in a fair and transparent manner. The bank encouraged to market participants to familiarise themselves with the guidelines to ensure compliance and support the country’s efforts toward economic stability.
In addition, the CBN is looking to enhance the trust of both domestic and international investors in the country’s FX market while attracting further foreign capital inflows and reducing the uncertainties surrounding the FX market.
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The new FX code follows the creation of an Electronic Foreign Exchange Matching System (EFEMS), designed for seamless Foreign Exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM) while helping the FX system to maintain stability and competitiveness in the global market.
