The Central Bank of Nigeria (CBN) has authorized the Nigerian Foreign Exchange Code to uphold ethical standards.

The Central Bank of Nigeria (CBN) has sanctioned the Nigerian Foreign Exchange (FX) Code, a detailed guideline designed to foster ethical behavior among authorized dealers in the nation’s foreign exchange market.

In a statement issued on Wednesday, the central bank revealed that this new framework aims to establish a basis for transparency, integrity, and professionalism in forex trading activities.

The Bank indicated that the official launch of the code is set to occur at its headquarters in Abuja on January 28.

“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market.

“The Bank will formally launch the Code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025,” the statement read.

This initiative is part of the Central Bank of Nigeria's ongoing efforts to stabilize the naira, improve liquidity in the foreign exchange market, and address unethical practices such as arbitrage and speculation.

The new framework aims to align Nigeria's foreign exchange operations with global best practices, thereby building trust among market participants and investors.

In October 2024, the bank launched the Electronic Foreign Exchange Matching System (EFEMS) to facilitate Foreign Exchange (FX) transactions within the Nigerian Foreign Exchange Market (NFEM).

This system enables authorized dealers to perform all foreign exchange transactions in the interbank FX market through the CBN-approved Electronic Foreign Exchange Matching System, ensuring that transactions are reflected in real-time.

The central bank indicated that this new system is designed to improve governance and transparency while promoting a market-driven exchange rate that is accessible to the general public.