The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, unveiled a new Foreign Exchange (FX) Code on Tuesday, aimed at establishing clear and enforceable standards for ethical conduct, transparency, and good governance in the foreign exchange market.
During the event in Abuja, Cardoso emphasised that the FX Code marks a significant step forward, sending a clear message that “business-as-usual will no longer suffice.” He pointed out that the code was developed as a blueprint for the future, informed by the lessons of the past.
Cardoso highlighted the detrimental effects of the previous era of multiple exchange rates, which created privileges for a select few at the expense of the broader population. He cited the ongoing verification process of a $7 billion FX backlog, which had taken over 12 months to resolve and uncovered several unethical and illegal practices.
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“We must not forget where we are coming from,” Cardoso said, stressing that the FX Code rejects such distortions and firmly commits to a future based on fairness, trust, and market-driven principles. He added that any violation of the FX Code would be met with swift and decisive sanctions.
The CBN Governor also provided an update on the progress of market reforms aimed at improving the FX market. He noted that 2024 was marked by significant structural reforms, including the unification of exchange rate windows and the clearing of foreign exchange commitments, all designed to restore credibility to the market.
“The introduction of the Electronic Foreign Exchange Matching System (EFEMS) in December 2024 has significantly improved market transparency and efficiency,” Cardoso said, adding that the Naira has appreciated from N1,663 on December 2, 2024, to N1,536 as of Monday.
Mrs Omolara Duke, CBN’s Director of Financial Markets Department, described the launch of the FX Code as a crucial milestone. She explained that the code was driven by a belief that Nigeria deserves an ethical, transparent, and resilient foreign exchange market, which serves everyone fairly and inspires both local and international confidence.
The FX Code is built on six core principles: ethics, governance, execution, information sharing, risk management, and settlement processes. These principles, according to Duke, represent Nigeria’s commitment to a foreign exchange market that aligns with the country’s financial aspirations.
Zenith Bank Plc Chairman, Mr. Jim Ovia, praised the initiative, calling the FX Code a significant blessing for the banking sector. He expressed optimism that it would unlock new opportunities for Nigeria and the financial industry as a whole.
