The Central Bank of Nigeria (CBN) has reiterated its commitment to the Nigerian Foreign Exchange (FX) Code, affirming that it has aligned its regulatory roles with the principles outlined in the global framework. The announcement was made in a statement signed by CBN Governor Olayemi Cardoso, Deputy Governor of Economic Policy Mohammad Abdullahi, and Director of the Financial Markets Department Dr. Omolara Duke.
The CBN stated that its decision follows a comprehensive review of the FX Global Code, which represents a set of internationally recognized best practices for the foreign exchange market. The apex bank emphasized its role as a regulator to market participants, as defined by the Code, and pledged to oversee FX market activities in a manner consistent with its principles.
“The Bank confirms that it acts as a regulator to Market Participants as defined by the Code and is committed to regulating FX Market activities in a manner consistent with the principles of the Code,” the statement read.
The CBN further explained that it has taken appropriate steps to align its operations with the Code, considering the size and complexity of Nigeria’s foreign exchange market. This move underscores the bank’s dedication to fostering transparency, fairness, and efficiency in the FX market, which is critical for maintaining investor confidence and ensuring economic stability.
The FX Global Code, developed by the Bank for International Settlements (BIS), provides a comprehensive set of guidelines to promote integrity and effective functioning in the global foreign exchange market. By aligning with the Code, the CBN aims to strengthen Nigeria’s position in the global financial landscape and enhance the credibility of its foreign exchange operations.
This commitment comes at a time when the Nigerian economy faces significant challenges, including currency volatility and foreign exchange shortages. The CBN’s adherence to the FX Global Code is expected to bolster market confidence and attract foreign investment, which is vital for economic growth and stability.
The statement also highlights the CBN’s ongoing efforts to modernize and streamline its regulatory framework, ensuring that Nigeria’s foreign exchange market operates in line with global standards. This alignment is seen as a critical step toward addressing some of the structural issues that have plagued the market in recent years.
As the CBN continues to implement reforms and uphold the principles of the FX Global Code, stakeholders remain optimistic about the potential for improved market dynamics and a more stable economic environment.
