THE Central Bank of Nigeria (CBN) said it has approved the release of the Nigerian Foreign Exchange (FX) Code.
It announced the approval in a statement issued on Wednesday, January 22, adding that the code would formally be launched in Abuja next week.
It said the FX Code would help promote ethical conduct in the Nigerian foreign exchange market.
“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market.
“The Bank will formally launch the Code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025,” CBN started.
The Code will offer clearer directives on the expectations for market participants and ensure that the market operates fairly and transparently.
The CBN step is necessary as the Nigerian FX market has been experiencing volatility in recent years, with issues such as currency devaluation and irregularities in FX transactions affecting both investors and businesses.
The ICIR can report that in October last year, the apex bank introduced the Electronic Foreign Exchange Matching System (EFEMS) and set a minimum trade value of $100,000 for interbank foreign exchange trading via the platform.
The system is designed to streamline interbank FX trading, reduce counterparty risks, and ensure adherence to CBN regulations.
Among other guidelines, participation in the EFEMS is limited to authorised dealer banks licensed by the CBN, while other institutions wishing to join the platform must first obtain prior approval, The ICIR reported.