The Nigeria FX Code of Ethics now requires banking leaders to annually attest to it, as the Central Bank of Nigeria (CBN) introduces a new directive to boost transparency in the foreign exchange market.
The Central Bank of Nigeria (CBN) has introduced new guidelines for the Nigeria Foreign Exchange Market (NFEM) to improve transparency and governance.
Notably, a key requirement is for bank boards, CEOs, and Chief Compliance Officers to annually affirm adherence to the Nigeria FX Code of Ethics, promoting integrity and accountability.
The guidelines, outlined by Director of the CBN’s Financial Markets Department, Omolara Omotunde Duke, replace previous directives, including the June 2023 changes.
In particular, authorised dealers must facilitate FX transactions transparently by ensuring compliance with regulations, verifying documentation, and offering digital access.
Moreover, all transactions must occur through licensed dealers, with unauthorised dealings strictly prohibited.
Similarly, Bureaux de Change (BDCs) can source FX from authorised dealers within CBN-imposed limits.
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At the same time, all activities by BDCs, International Money Transfer Operators (IMTOs), and authorised dealers must comply with licensing terms and the Nigeria FX Code.
Additionally, the Electronic Foreign Exchange Matching System (EFEMS) regulates pricing, publishes daily rates, and ensures market transparency.
Furthermore, to strengthen oversight, all FX transactions must be reported to the CBN within 10 minutes.
Banks and BDCs must submit real-time data through designated systems, while the CBN maintains a central repository of market information to support price discovery and efficiency.
Ultimately, by enforcing these reforms, the CBN seeks to create a transparent, well-regulated FX market.
Thus, the CBN encourages stakeholders to comply with the new rules to support sustainable market development.
