In a move to enhance transparency and strengthen oversight in the foreign exchange market, CBN has announced the official launch of the Nigerian FX Code on January 28, 2025.
This new code aims to promote transparency and ethical conduct among banks and authorised dealers in the foreign exchange market.
To strengthen governance and restore trust, the CBN introduced revised guidelines for the Nigerian Foreign Exchange Market (NFEM) in November 2024.
These guidelines require banks’ boards, Chief Executive Officers (CEOs), and Chief Compliance Officers to annually confirm their adherence to the FX Code of Ethics and Conduct.
As a result, financial institutions will be held accountable for maintaining market integrity and complying with regulatory standards.
Furthermore, the CBN has instructed authorised dealers to conduct due diligence, ensure transparent pricing, and provide easy access to forex transactions through digital platforms.
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In addition, the bank has made it clear that all legitimate FX transactions must go through licensed dealers, warning against any dealings with unauthorised intermediaries.
The revised guidelines also include Bureaux de Change (BDC) operators.
Now, licensed BDCs can purchase FX from authorised dealers within CBN-imposed limits, helping meet customer needs while ensuring compliance.
Similarly, International Money Transfer Operators (IMTOs) and other market participants must follow the FX Code and adhere to their licensing terms.
By launching the FX Code, the CBN seeks to create a more transparent, accountable, and efficient forex market.
Ultimately, this move aims to foster greater confidence and stability in Nigeria’s financial sector.
