The Central Bank of Nigeria (CBN) has approved the Nigerian Foreign Exchange (FX) Code to improve ethical behavior and transparency in the country’s foreign exchange market. This Code will act as a guideline for banks and authorized dealers to ensure they handle FX transactions with professionalism and integrity.

Details of the New Development
The FX Code is part of the CBN’s broader efforts to stabilize and strengthen Nigeria’s FX market. It provides clear rules and expectations for participants, ensuring the market operates fairly and transparently. This initiative is coming at a time when the Nigerian FX market has faced instability, and issues like currency devaluation and irregularities in FX transactions which the FX Code aims to address these challenges and restore confidence among businesses and investors.
The CBN has announced that the FX Code will be officially launched on January 28, 2025, at the CBN Head Office in Abuja. The launch event will include key players in banking, finance, and regulatory sectors.
By introducing the FX Code, the CBN hopes to boost trust among both domestic and international investors. This aligns with the bank’s strategy to create a strong financial system that can handle global economic pressures while ensuring Nigeria’s economy remains competitive.
Now, The FX Code is expected to make Nigeria more attractive for foreign investments by reducing uncertainties in the FX market. Analysts believe this move will help secure Nigeria’s economic stability and improve its position as a reliable investment destination. Due to this, The CBN is urging banks and other participants in the FX market to learn the new guidelines to ensure compliance. This will help achieve the goal of creating a stable and transparent FX market.
What You Should Know
In August 2024, the CBN auctioned $876.26 million to end-users through commercial banks to strengthen the naira. Additionally, it launched an Electronic Foreign Exchange Matching System (EFEMS) to improve the efficiency of FX transactions in the Nigerian market.
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