Naira gains as weekly dollar liquidity surges 216% on FX code
The naira rose 2.08 percent against the dollar this week as the greenback’s liquidity in the official foreign exchange market
The naira rose 2.08 percent against the dollar this week as the greenback’s liquidity in the official foreign exchange market more than tripled amid the launch of the FX Code by the central bank.
The total turnover in the FX spot and derivatives markets surged to $3,866.66 million from $1,224.90 million last year, according to data obtained by MarketsReporters from securities exchange FMCG.
The increase in total turnover was solely driven by the 215.67% increase in FX spot transactions, while there were no derivatives transactions.
The average Nigerian Autonomous Foreign Exchange Fixing rate was $/₦1,522.43, compared to $/₦1,554.07 last week.
On Tuesday, the Central Bank of Nigeria formally launched the Nigerian Foreign Exchange Code (FX Code), to promote accountability, ensure compliance, and engender transparency in the country’s foreign exchange market.
“The FX Code marks a new era of compliance and accountability. It is not just a set of recommendations; this is an enforceable framework,” Olayemi Cardoso, governor of the CBN, said.
He said the FX Code, which comes on the heels of the Electronic Foreign Exchange Matching System launched in December 2024, “sets clear and enforceable standards for ethical conduct and governance in the foreign exchange market, addressing past challenges that undermined market integrity”.
He noted that unethical behavior and systemic abuses were key contributors to past issues and vowed decisive action against any breaches of the FX Code.
“We will not tolerate any attempts to revert to those practices. Any individual or institution that violates the FX Code will face swift and decisive sanctions.”
Nigerian FX Code was adopted from the Global FX Code, launched in May 2017. She noted that Nigeria now joins 54 other central banks in signing onto this global standard.
