The Tinubu Media Support Group
(TMSG) has described the Nigeria Foreign Exchange code (FX code) introduced by the Central Bank of Nigeria (CBN) as the beginning of a new era of regulation in the country’s foreign exchange market.
In a statement signed by its Chairman Emeka Nwankpa and Secretary Dapo Okubanjo, TMSG maintained that the new regulations would prevent a situation that led the current CBN leadership to launch a forensic audit into the $7 billion backlog it inherited.
“We see the Central Bank’s introduction of the new code of ethics to guide operations in Nigeria’s foreign exchange market as long overdue.
“Coming off the back of the end of the free-for-all that bookmarked the era of multiple exchange rate, it is clear the move would enhance transparency and help stabilize the naira.
“Listening to the CBN governor Olayemi Cardoso speak on the forensic audit of the $7 billion backlog, it is obvious that the Nigerian forex environment was replete with unethical practices that the apex bank is no longer prepared to tolerate.
“For us, it was heartwarming hearing the CBN governor reading the riot act to bank executives about the bank’s zero tolerance to attempts to revert to the past with a clear warning that any individual or institution that violates the FX code will face swift and decisive sanctions.
“We agree with Cardoso’s submission that exchange rate stability remained a ‘cornerstone of macroeconomic health for the Nigerian economy that is capable of influencing critical indicators including balance of payments, external reserves, international trade, inflation, economic growth, and foreign investment.
“And with the signing of the commitment charter by chief executives of banks at the launch of the FX code, we dare say that Nigeria is on the cusp of a new era of professionalism and ethical operation in the foreign exchange market.
“It is also not surprising that even before the launch, Nigerians have been witnessing some sanity in recent months in the forex market with the naira becoming more stable while also appreciating further in the parallel market,” it added.
The group urged the CBN leadership to stay the course in its quest to entrench good governance and restore sanity in the forex market as well as strengthen the naira.
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