Home News Finance Nigeria’s Central Bank Issues New FX Code, Mandates Compliance for Banks and BDCs
FinancePolitics

Nigeria’s Central Bank Issues New FX Code, Mandates Compliance for Banks and BDCs

590
CBN Issues New FX Code, Mandates Compliance for Banks and BDCs

Central Bank of Nigeria (CBN) has issued a new Foreign Exchange (FX) code as guidelines mandating compliance for commercial banks and Bureau De Change operators.

The apex bank disclosed this on Thursday in a 38-page document detailing how the new FX code will help stabilise the naira.

According to CBN, it is a set of principles of good practice in the Nigerian Foreign Exchange Market (NFEM) that aligns with global standard practices while strengthening the country’s financial system.

CBN noted it was created on six critical principles, including ethics, governance, execution, information sharing, risk management and compliance, confirmation and settlement, all of which will take effect on October 14, 2024.

While all Market Participants (licensed Banks and BDCs operators) must submit a self-assessment report on compliance level, they are also required to be in full compliance by December 31, 2024.

Market Participants will be required to submit a quarterly report to the Financial Markets Department (FMD) on the level of compliance with the FX Code within 14 days after the end of every calendar quarter, with the first report due by December 31, 2024,” the guideline reads partly.

Meanwhile, following President Tinubu’s directive to the CBN governor, Yemi Cardoso to float the Naira, it fell from N465 per dollar to N1,657.86.

By floating the Naira, the Nigerian government gave room for demand and supply in the foreign exchange market to determine the value of the Naira, resulting in several measures by CBN to stabilise the naira, including a crackdown on BDC operators and cryptocurrencies, and now, new FX code.

Read Also: Naira Suffers More Depreciation at N1,669/$, After Independence Day Celebration

About The Author

Written by
Mayowa Durosinmi

M. Durosinmi is a West Africa Weekly investigative reporter covering Politics, Human Rights, Health, and Security in West Africa and the Sahel Region

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

NewsPoliticsWorld

At 92, Africa’s Oldest President Paul Biya Wins Eighth Term in Cameroon

Paul Biya, aged 92, has once again won Cameroon‘s presidency, marking his...

NewsPoliticsSecurity

Four Dead, Dozens Arrested as Cameroon Awaits Election Results

A wave of unrest is sweeping Cameroon as the country stands on...

NewsPoliticsSecurity

At Least Two Dead, Internet Blackout as Election Crackdown Escalates in Cameroon

Opposition protesters across Cameroon have been met with the authorities as tensions...

NewsPoliticsWorld

Tanzanian President Uses Banned Platform X for Campaign Messages — The Height of Political Hypocrisy

Tanzania’s president has come under criticism after posting a series of campaign...