In a bid to douse the fire in the Naira, the Central Bank of Nigeria has introduced a new Foreign Exchange Code that will guide genuine investors into the country’s FX market.
The code was part of a document published on the official website of the CBN today, Thursday, October 3, 2024.
According to the apex bank, the FX code is to regulate Nigeria’s financial system and to supervise the foreign currency market in line with international best practices.
CBN added that the new FX Code rested on six principles, including ethics, governance, execution, risk management and compliance, information sharing as well as confirmation and settlement processes.
The apex bank added that the guidelines will take effect from October 14, 2024.
The code stipulated that all market participants are required to provide a self-assessment report about their degree of adherence to the FX code by December 31, 2024.
“The FX Code is intended to promote a robust, fair, liquid, open, and appropriately transparent Market in which a diverse set of Market Participants, supported by resilient infrastructure, can confidently and effectively transact at competitive prices that reflect available market information in a manner that conforms to accepted global standards of behavior and best practices,” he wrote.
Full adherence to the FX Code and, therefore all Market Participants shall be in full compliance by December 31, 2024.
“Market Participants shall submit a quarterly report to the FMD on the level of compliance to the FX Code within 14 days after the end of every calendar quarter with the first report being due by December 31, 2024”, the statement guided.
This comes as the Naira gains strength against the dollar in both official and parallel foreign exchange markets.
Recall that on June 14 last year, the CBN floated the Naira on the FX market.
The development caused the value of the Naira in the FX market to tumble from N463 per dollar on June 13 of last year to N1659.26 on Thursday.
