CBN Governor Issues Stern Warning on Compliance with New Foreign Exchange Code

1 minute read

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has issued a stern warning to commercial banks and Bureau De Change (BDC) operators, urging them to comply strictly with the newly introduced Foreign Exchange (FX) Code.

Cardoso made this declaration on Tuesday during the official launch of the FX Code, outlining its importance in strengthening the integrity of Nigeria’s financial sector.

The FX Code is designed to ensure transparency and curb unethical practices in the foreign exchange market. Governor Cardoso emphasized that the Code serves as a binding commitment to accountability and transparency in all foreign exchange transactions within the country.

“The FX Code represents a firm commitment to accountability, transparency, and ethical conduct in our financial systems. It is an essential step towards restoring confidence and ensuring that our market operates on principles of fairness and integrity,” Cardoso stated. “This Code sends a clear and unequivocal signal that the status quo of unethical practices will no longer be tolerated.”

He further highlighted that any deliberate efforts to distort the FX market by financial players will be met with stringent consequences. “The FX Code is a strong rejection of any form of market distortion, and it is a resolute pledge to uphold a future based on fairness, trust, and market-driven principles,” Cardoso emphasized.

Following the launch of the FX Code, there was a noticeable appreciation of the Naira against the U.S. dollar, with the currency strengthening in both the official and parallel foreign exchange markets on Tuesday. This development has been seen as a positive reflection of the confidence the FX Code is expected to instill in Nigeria’s financial system.