Regulatory Alerts2024-10-03 | October 3, 2024Nigeria Foreign Exchange (FX) Code Book
The Central Bank of Nigeria (CBN) has released the Nigeria Foreign Exchange Code (FX Code) to strengthen and promote the integrity and effective functioning of the wholesale foreign exchange market in Nigeria. The FX Code sets standards for market participants, including banks licensed by the CBN, to ensure ethical and professional behavior, sound governance, transparent execution, effective risk management, and robust post-trade processes. Compliance with the FX Code is mandatory for market participants, who must conduct self-assessments and submit compliance reports to the CBN by specified deadlines. The CBN may take enforcement actions, including monetary penalties, for non-compliance. The FX Code aims to facilitate a well-functioning, flexible exchange rate regime and promote a robust, fair, liquid, open, and transparent market.