- The Central Bank of Nigeria has launched the foreign exchange code to foster ethical market practice
- The CBN says it will commence the payment of the foreign exchange backlog soon
- It reiterated its commitment to market stability and transparency
The Central Bank of Nigeria (CBN) has launched the Nigeria Foreign Exchange (FX) Code to foster ethical conduct among authorised dealers and transparency in the forex market.
At the launch in Abuja on Tuesday, January 28, the CBN governor, Olayemi Cardoso, reiterated that the code is part of the apex bank’s ongoing reforms to sanitise the market, drive transparency, and serve as a regulatory framework for the banking industry.
The CBN earlier stated that the FX code ensures that authorised dealers uphold the highest standards of professionalism and integrity when conducting forex transactions, as it offers clear directives on the expectations for market participants, ensuring that the market operates fairly and transparently.
Cardoso stressed that the code will ensure that all participants in Nigeria’s forex market play their part transparently, warning that any Deposit Money Bank (DMB) found violating the ethics outlined in the FX Code would face sanctions.
He said, “The era of opaque practices is over. The FX code is a binding commitment to transparency and accountability and we must all play our part.
“This is our market; we must do everything possible to make it work for all of us.”
CBN to commence payment of FX backlog
At the event, Cardoso also announced the completion of forensic verification to clear all pending foreign exchange backlogs, saying it will soon commence payments.
Cardoso noted the challenges faced in addressing the $7 billion forex backlog, which took over 12 months to clear in 2024.
He said, “In March last year, the CBN announced the clearance of the backlog, effectively eliminating a legacy burden.”
Commitment to forex market stability
The CBN governor also stressed that the era of multiple exchange rates, which led to market speculations and arbitrage is over.
Cardoso also disapproved of what he described as an era of “unprecedented ways and means of financing,” which he said had negatively impacted the economy by driving high inflation and currency depreciation.
On the impact of the Electronic Foreign Exchange Matching System (EFEMS), launched in December 2024, Cardoso assured that the intervention had improved market transparency and efficiency, noting that the naira had appreciated from N1,663/$ in December 2024 to N1,536/$ as of January 27, 2025.
FX matching system will address rate disparity, naira’s true value – Cardoso
Meanwhile, TheRadar earlier reported that the governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said the electronic foreign exchange (forex) matching system will soon address the disparity between the current naira-to-dollar exchange rate and the naira’s true market value.
Cardoso stated this at the Bankers’ Committee annual dinner held on Friday, November 29, in Lagos.
