CBN Launches New Foreign Exchange Code for FX Transaction as Banks Begin Sale of BTA, PTA

• The Central Bank of Nigeria (CBN) has approved the issuance of the Nigerian Foreign Exchange Code
• The new code, which will be a guideline for authorised forex dealers, will be launched on Wednesday, January 28, 2025
• The new guideline allows bank chiefs and compliance officers to abide by the new FX Code

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Central Bank of Nigeria (CBN) has said it approved the release of the Nigerian Foreign Exchange Code, which is billed for launch on January 28, 2025.

The new code will serve as a rulebook for the banking industry to boost the ethical conduct of authorised FX dealers in the Nigerian Foreign Exchange market (NFEM).

Banks must sign off on new FX code

CBN disclosed that it will launch the code at its head office auditorium in Abuja on Wednesday, January 28, 2025.

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In November 2024, the apex bank introduced the revised guidelines for the NFEM to boost governance and transparency.

An essential feature of the guideline requires bank bosses, their CEOs and Chief Compliance Officers to adhere to the FX Code of Ethics and Conduct.

The move shows the CEOs’ commitment to uphold market integrity and align with all CBN circulars and guidelines.

After consolidating all forex market windows, the new guideline aims to deepen the FX market.

The apex bank’s circular, signed by CBN’s Omolara Duke of CBN’s financial market intelligence unit, supersedes prior orders, including changes made in June 2023 and beyond.

New guideline includes black market operators

The new guidelines say authorised dealers must facilitate forex transactions for companies and individuals while ensuring compliance with regulations.

The dealers are saddled with conducting due diligence and finding solutions. Also, all legitimate forex transactions dealing with unauthorised intermediaries are banned.

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Bureau de Change (BDC) operators are also included in the new guidelines, as licensed BDCs can purchase FX from authorised dealers within the stipulated limits set by CBN.

Additionally, all forex transactions conducted by BDCs, IMTOs, and authorised dealers must abide by the terms of their licenses and the Nigerian FX Code.

Nigerian banks begin sale of FX at new rates

Legit.ng earlier reported that some commercial banks resumed selling to their customers Personal Travel Allowance (PTA) and Business Travel Allowance (BTA), showing a shift in FX availability after a prolonged supply shortage.

The development came as financial institutions adjusted to market demands and the Central Bank of Nigeria (CBN) policy changes.

Nigeria’s oldest financial Institution, First Bank, announced the resumption of FX sales for various international transactions.

Source: Legit.ng