The Central Bank of Nigeria (CBN), on 28 January 2025, launched the Foreign Exchange Code (FX Code) as a guide to the banking industry to promote ethical conduct in the Nigerian Foreign Exchange Market (FX Market).
The FX Code with a retrospective effective date of 2 December 2024, is grounded on six guiding principles, namely, ethics, governance, execution, information sharing, risk management and compliance, confirmation and settlement processes, and applies to all Market Participants including Authorized Dealers, Banks and Other Financial Institutions licensed by the CBN under the Banks and Other Financial Institutions Act 2020 (BOFIA).
In this newsletter, our finance team provides an overview of the principles stated in the FX Code whilst also highlighting the potential impact of the FX Code on the Nigerian FX Market.
