The Central Bank of Nigeria (CBN) has introduced the Nigeria Foreign Exchange Code (FX Code), aimed at fostering transparency, ethical conduct, and fairness within the country’s foreign exchange market.
At the launch event on Tuesday, the CBN Governor, Olayemi M. Cardoso, described the FX Code as a transformative initiative designed to enhance the integrity and efficiency of Nigeria’s forex operations.
“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. It is a firm signal that business-as-usual will no longer suffice,” Cardoso said.
The newly launched FX Code is underpinned by six core principles: Ethics, Governance, Execution, Information Sharing, Risk Management and Compliance, and Confirmation and Settlement Processes. The Governor noted that these principles not only align with international standards but are also tailored to address Nigeria’s specific challenges in the forex market.
Cardoso emphasized the progress achieved through recent financial reforms, particularly the Electronic Foreign Exchange Matching System (EFEMS) introduced in December 2024. He revealed the impact of the system on the value of the naira, stating, “Since its launch, the naira has appreciated significantly—from ₦1,663.90 on December 2, 2024, to ₦1,536.72 as of yesterday.”
The Governor also highlighted other reform milestones, such as the unification of exchange rate windows and adjustments to monetary policy tools. He noted that these measures have bolstered investor confidence and restored credibility to Nigeria’s forex market. As a result, external reserves grew by 12.74% to reach $40.68 billion by the end of 2024.
Cardoso called on all forex market participants to align with the FX Code’s guiding principles, stressing that adherence is mandatory. “The era of opaque practices is over. We will not hesitate to act against any institution or individual that undermines the integrity of our financial markets,” he warned.
The Governor also expressed gratitude to the Financial Markets Dealers Association (FMDA) and the Global Foreign Exchange Committee (GFXC) for their support in capacity building and the successful implementation of the FX Code.
