ICYMI: CBN to launch FX code for authorised dealers on January 28

The Central Bank of Nigeria (CBN) says it will launch the Nigerian foreign exchange (FX) code as a guideline to promote the conduct of authorised dealers in the forex market.

In a statement on Wednesday, CBN announced that it approved the release of the code, noting that it will be formally launched on January 28 in Abuja.

“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 ethical conduct of Authorised Dealers in the Nigerian Foreign Exchange Market,” CBN said.

“The bank will formally launch the Code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025.”

The FX code is part of CBN’s efforts to reform the FX market.

On October 3, 2024, the central bank announced the introduction of an electronic foreign exchange matching system (EFEMS).

CBN said the system seeks to enhance governance, and transparency and facilitate a market-driven exchange rate that will be accessible to the public.

The apex bank further explained that the platform would further reduce speculative activities, eliminate market distortions and give the CBN improved oversight capabilities to effectively regulate the market.

CBN noted that authorised dealers would subsequently conduct all FX transactions in the interbank FX market on the EFEMS approved by the apex bank where transactions will be reflected immediately.

The central bank added that it would publish real-time prices and buy/sell orders data from the system, and in collaboration with the Financial Markets Dealers Association (FMDA), publish the rules for the EFEMS.