The Central Bank of Nigeria (CBN) has unveiled a fresh Foreign Exchange (FX) Code aimed at regulating the country’s FX market and stabilizing the Naira.
The new guidelines, released on the CBN’s official website on Thursday, October 3, 2024, outline key principles to govern market participants and align with global best practices.
The FX Code, which will take effect on October 14, 2024, is built around six core principles: ethics, governance, execution, risk management and compliance, information sharing, and confirmation and settlement processes.
These guidelines are designed to ensure a robust, fair, and transparent market where participants can confidently engage in FX transactions.
According to the CBN, all market participants are required to submit a self-assessment report on their compliance with the FX Code by December 31, 2024.
Additionally, participants will be mandated to submit quarterly reports on their compliance levels, with the first report due by December 31, 2024, and subsequent reports within 14 days after the end of each calendar quarter.
The CBN emphasized that the FX Code is intended to foster a liquid, open, and transparent market that reflects competitive pricing and global standards of behavior.
This announcement comes as the Naira has shown signs of appreciation against the Dollar in both the official and parallel markets.
It follows the CBN’s decision to float the Naira in June 2023, a move that initially led to a significant depreciation, with the Naira dropping from N463 per dollar on June 13, 2023, to N1659.26 as of Thursday, October 3, 2024.
