The Central Bank of Nigeria (CBN) has unveiled a new Foreign Exchange (FX) Code, set to take effect on October 1.
This initiative is designed to regulate the financial system and oversee the foreign exchange market in alignment with global best practices. The code is structured around six fundamental principles: ethics, governance, execution, risk management and compliance, information sharing, and confirmation and settlement processes.
According to the CBN, "The FX Code is intended to promote a robust, fair, liquid, open, and appropriately transparent Market in which a diverse set of Market Participants, supported by resilient infrastructure, can confidently and effectively transact at competitive prices that reflect available market information in a manner that conforms to accepted global standards of behavior and best practices."
All market participants are required to submit a self-assessment report on their compliance with these guidelines by December 31, 2024. Furthermore, they must provide quarterly reports to the Financial Markets Department (FMD) within 14 days after the end of each calendar quarter, with the first report due by the end of the year.
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