The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has officially launched the Nigeria Foreign Exchange Code (FX Code), a framework designed to promote integrity, fairness, transparency, and efficiency in the nation’s foreign exchange market. The initiative is expected to strengthen economic growth and ensure stability in the financial sector.
The FX Code is structured around six core principles: ethics, governance, execution, information sharing, risk management and compliance, as well as confirmation and settlement processes. These principles align with global best practices while addressing challenges unique to Nigeria’s foreign exchange market.
Speaking at the launch, Governor Cardoso described the FX Code as a critical step toward instilling discipline and accountability in foreign exchange operations. He emphasized that the new framework would eliminate opaque practices and reinforce ethical conduct. He stated, “The FX Code represents a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency, and good governance in our foreign exchange market. The era of opaque practices is over. The FX Code marks a new era of compliance and accountability. Under the CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions.”
Cardoso further highlighted the impact of ongoing reforms in the financial sector, noting that the structural adjustments introduced in 2024 had contributed to restoring a freely determined market price for the naira while addressing market distortions.
Beyond the foreign exchange sector, the FX Code forms part of the CBN’s broader efforts to enforce compliance across the financial industry. The framework consists of six guiding principles and 52 sub-principles, establishing a comprehensive benchmark for ethical conduct among all participating institutions.
The launch event was attended by key stakeholders, including banking executives and financial market leaders, who pledged their commitment to upholding the FX Code’s standards. The event concluded with the formal signing of the code by participating banks, signifying a unified effort to enhance transparency and trust in Nigeria’s financial markets.
The introduction of the FX Code marks a significant milestone in Nigeria’s financial reforms, reinforcing the CBN’s commitment to fostering a more accountable and resilient economic landscape.
