2025: CBN sets January 31 deadline for submission of FX market report
The Central Bank of Nigeria (CBN) has directed participants in the nation’s foreign exchange (FX) market to submit a compliance report on their adherence to the Nigeria Forex Code by January 31, 2025.
The apex bank said the directive is part of its efforts to strengthen ethical practices, governance, and transparency in the Forex market.
According to the Nigeria Foreign Exchange Code (Forex Code) document released by CBN on its website on Monday, it said “Market Participants will be required to conduct a self-assessment and submit to the CBN a report on the institution’s level of compliance with the Forex Code by January 31, 2025. All M market participants will thereafter be required to submit to CBN a detailed compliance implementation plan that is approved and signed by its Board along with the extracts of the Board meeting.”
“Market Participants will be required to submit a quarterly report to the Financial Markets Department (FMD), on the level of compliance to the FX Code within 14 days after the end of every calendar quarter, with the first report due by March 31, 2025.”
It stated that the Nigeria Forex Code which became effective from December 2, 2024, outlines principles of good practice to ensure a robust, fair, and transparent Forex market. It applies to authorised dealers licensed under the CBN Act 2007, the Bank and Other Financial Institutions Act 2020, and other institutions engaged in wholesale forex business.
The apex bank said the Forex Code is expected 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 acceptable global behavioral standards and best practices.”
It said the FX Code was in response to these developments to set out standards to holistically strengthen and promote the integrity and effective functioning of the wholesale foreign exchange (FX) market in Nigeria, adding that it will facilitate better functioning of the market, further reinforcing Nigeria’s flexible exchange rate regime.
