The Central Bank of Nigeria (CBN) has launched the Nigeria Foreign Exchange (FX) Code, aimed at fostering transparency, ethical practices, and efficiency in the nation’s foreign exchange market.

Speaking during the launch in Abuja on Tuesday, the CBN governor, Mr Olayemi Cardoso, explained that the FX code sets clear and enforceable standards to address past malpractices and prevent a recurrence of systemic abuses that have undermined Nigeria’s financial ecosystem.

Cardoso said: “The era of multiple exchange rates, which created privileges for a select few at the expense of most Nigerians, severely undermined market integrity. As an example, the $7bn of FX backlogs that has taken over 12 months to verify has led to the discovery of multiple unethical and even illegal practices that we should not be proud of as a nation. The forensic verification process is now near complete, and final settlements will be processed accordingly.”

He said the FX Code is structured around six core principles namely: Ethics, Governance, Execution, Information Sharing, Risk Management and Compliance, and Confirmation and Settlement Process, which align with global standards while addressing Nigeria’s unique challenges.

The CBN boss further warned that violations of the FX code would not be tolerated, while urging market participants, including bank board chairs, managing directors, and compliance officers, to adopt the principles of the FX code within their organisations.

The apex bank tsar also disclosed that the period of unprecedented ways-and-means-financing inflicted significant damage on our economy, contributing to inflation, currency depreciation, and eroded public confidence.

He said: “These practices must never return. The FX code is a firm rejection of such distortions and an equally firm commitment to a future defined by fairness, trust and market-driven principles.

https://dailytrust.com/cbn-launches-fx-code-to-settle-backlogs-soon/