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FOREX code, Cardoso’s approach to stabilizing the naira
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By Dr. Ibrahim Modibbo
Within hours after the launch of foreign exchange code by the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, on January 28, 2025, in Abuja, the positives from this move by the apex bank emerged as the naira appreciated against the US dollar. Following the launch of the FX code on Tuesday, the naira appreciated by 0.97 percent, gaining N16 against the dollar in the parallel market, by trading at an average rate of N1, 634 compared to N1, 650 it traded on Monday. In the official window, data from the CBN revealed that the naira was quoted at N1, 533.50 to the dollar at the Nigerian Foreign Exchange Market (NFEM).
Cardoso’s newly introduced FX code is aimed at improving market liquidity, enhancing transparency, and providing guidance for all those participating in the country’s foreign exchange sector. The code represents a set of principles that are not only encouraged, but accepted as best practices in the global foreign exchange market. The CBN as the regulator of Nigeria’s turbulent forex market drafted the FX code to address risks associated with the emerging financial landscape in the nation, while also strengthening the integrity and functionality of the foreign exchange market.
The CBN in developing the FX code is responding to Nigeria’s financial transformation in recent years and the attendant risks associated with such a growth, in spite of significant progress recorded. The code seeks to establish standards that ensure the efficient functioning of the wholesale FX market, further reinforcing the country’s flexible exchange rate system. It will further promote a robust market that’s characterised by fairness, openness, and adequate transparency, enabling a diverse group of participants to engage effectively at competitive rates that reflect accurate market information. It outlines behavioral standards and best practices that align with global expectations.
Addressing industry players at the launch and alluding to the deep insights and interactions with them, Cardoso said that the acceptance of the FX code reflects the collective vision of everyone for a foreign exchange market built on integrity, fairness, transparency and efficiency, based on its critical nature for Nigeria’s economic growth and stability.
Making reference to the words of the late Nelson Mandela, on the need for leaders to be great listeners, the CBN governor admitted that the apex bank through its interactions with industry players, better understands the perspectives, concerns, and recommendations they expressed. He said the ideas shared reaffirmed the collective commitment to shaping a more resilient and transparent FX market.
He declared that the FX code represents a decisive step forward by the CBN, to set a clear and enforceable standards for ethical conduct, transparency, and good governance in Nigeria’s foreign exchange market. The code, Cardoso added is a firm signal that business-as-usual in the forex market has ended because the code is a blueprint for the future, that is grounded in the hard lessons of the past.
“We must not forget where we are coming from. The era of multiple exchange rates, which created privileges for a select few at the expense of most Nigerians, severely undermined market integrity. As an example, the $7billion of FX backlogs that has taken over 12 months to verify has led to the discovery of multiple unethical and even illegal practices that we should not be proud of as a nation,” he disclosed.
The CBN governor further stated that the period of unprecedented ways-and-means-financing that inflicted significant damage on Nigeria’s economy, contributing to rising inflation, currency depreciation, and eroded public confidence in government’s ability to deal with adverse economic issues is over.
“These practices must never return. The FX Code is a firm rejection of such distortions and an equally firm commitment to a future defined by fairness, trust and market-driven principles. Let us be clear: the system itself played a key role in the challenges of the past.
“Unethical behaviours and systemic abuses – whether by those with privileged access or by complicit participants – eroded public trust and harmed our economy. 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,” Cardoso warned.
Predicting the future, he expressed confidence that the nation’s journey towards market reforms is already yielding positive results. According to him, 2024 was marked by structural reforms which sought to return the naira to a freely determined market price and ease volatility.
Such reforms include the discontinuation of quasi-fiscal interventions, unifying the exchange rate windows, clearing a backlog of foreign exchange commitments, and recalibrating monetary policy tools to redirect the course of Nigeria’s economy, restore order and credibility to our FX market, and refocus the CBN on discharging its core mandates.
Cardoso used the opportunity of the FX code to reel out some notable achievements of his stewardship, pointing to the introduction of the Electronic Foreign Exchange Matching System (EFEMS) in December 2024 that has improved market transparency and efficiency. Since its launch, the naira has appreciated significantly—from ₦1, 663.90 on December 2,
2024, to ₦1, 536.72 as of January 28, 2025. Also worthy of mention is the country’s external reserves that have grown by 12.74 percent, reaching $40.68 billion at the end of 2024.
He emphasized the importance of exchange rate stability, describing it as the cornerstone of macro-economic health for an economy like Nigeria’s. The apex bank governor said that beyond daily market rates, the exchange rate influences critical indicators such as the balance of payments, external reserves, international trade, inflation, economic growth, and foreign investment. These factors collectively, he submitted shape the economic welfare of the nation and that of Nigerians.
To Cardoso, tackling rising inflation remains a major challenge of the CBN under his watch, as in his view, rising prices erode the purchasing power of Nigerians and increases the cost of living. However, he believes strongly too that by fostering an exchange rate stability, the problem of inflation can be tackled head-on.
The FX code, the CBN chief asserted marks a new era of compliance and accountability. The code, he declared is not just a set of recommendations, but an enforceable framework, warning industry players that under the CBN Act, 2007 and BOFIA Act, 2020, violations will be met with penalties and administrative actions. He told stakeholders who attended the launch that they must recognize that adherence to the code is not merely about compliance but about restoring public trust in Nigeria’s financial system.
“Beyond the foreign exchange market, the FX code forms part of our renewed focus on compliance across the financial services industry and I am particularly pleased that we have the leadership of the industry to reinforce a collective commitment to the journey ahead. Self-regulation and conduct are at the core of the changes in culture we expect to see at play in the industry, and I expect the principles of the FX code to be applied across other business areas.
“The FX code is built on six core principles—ethics, governance, execution, information sharing, risk management and compliance, and confirmation and settlement processes. These principles align with international standards, while addressing Nigeria’s unique challenges. Together, they provide the foundation for a resilient and transparent market that inspires confidence among both domestic and international participants.
“Today, as we formally launch the FX code, I call on all market participants to embrace its principles wholeheartedly. The six guiding principles and 52 sub-principles must become the standard for conduct across all participating institutions. Leaders in this room – board chairs, managing directors, and chief compliance officers – must lead from the front. Embedding these standards within your organizations is not optional,” Cardosa stated.
He reiterated that the eras of opaque practices is over because the CBN will not hesitate to deal with any institution or individual that undermines the integrity of the financial markets. The code, he added, serves as a collective pledge to transparency, ethical conduct, and fairness in the forex market, and that most importantly, through strict adherence to thev code, Nigeria can build a financial ecosystem that embodies resilience, global competitiveness, and economic prosperity.
Dr Modibbo is an Abuja based Development communication analyst.
News
INEC unveils Final list of candidates for 2027 elections, Jonathan, Nwoko, Goje, others missing
The Independent National Electoral Commission (INEC) on Saturday released the final list of candidates for the 2027 general elections, bringing months of political uncertainty to an end.Several prominent politicians were absent from the list, including former President Goodluck Jonathan, whom the Tanimu Turaki-led faction of the Peoples Democratic Party (PDP) had claimed as its presidential candidate.
Also missing were the senator representing Delta North, Ned Nwoko; former Ogun State Governor Gbenga Daniel (Ogun East); former Gombe State Governor Danjuma Goje (Gombe Central); and the senator representing Kebbi South, Garba Maidoki.
The development comes two months after Senate President Godswill Akpabio assured lawmakers who lost their return tickets during the All Progressives Congress (APC) primaries that the party leadership was working to resolve grievances arising from the exercise.
Although the APC reinstated six serving senators after reviewing petitions submitted to its Primary Election Appeal Committee, several influential politicians who had hoped to benefit from the review remained excluded from the final list submitted to INEC.
In Delta State, Nwoko’s name was absent from the list displayed at the INEC office in Asaba, with former Delta State Governor Ifeanyi Okowa confirmed as the APC’s senatorial candidate for Delta North. The outcome confirmed Nwoko’s earlier defeat in the party’s primary election.
In Gombe State, former governor Danjuma Goje also failed to secure the APC ticket, losing to retired Deputy Commissioner of Police Mohammed Ahmed.
On the opposition side, former Governor Ibrahim Hassan Dankwambo emerged as the PDP candidate for Gombe North Senatorial District, while Senator Anthony Siyako secured the party’s ticket for Gombe South.
In Bauchi State, Senator Shehu Buba, who represents Bauchi South, and Mansur Soro, the member representing Darazo/Ganjuwa Federal Constituency, were also absent from the final list.
Buba, who was elected on the APC platform, will not seek re-election after defecting to the Peoples Redemption Party, where he secured the party’s governorship ticket. Soro had earlier announced that he would not contest either the Bauchi Central Senatorial seat or another term in the House of Representatives.
The APC’s review of its primary election results affected nine states — Kogi, Benue, Taraba, Ondo, Abia, Niger, Kwara, Kaduna and Ebonyi — and resulted in the reinstatement of Senators Sunday Karimi, Emmanuel Udende, Titus Zam, Shuaibu Isa Lau, Adeniyi Adegbonmire and Olajide Ipinsagba.
The party also replaced Edinburgh Uchenna Erondu with Prince Paul Ikonne as its candidate for Abia South Senatorial District.
News
Tehran Denies Negotiating With US After Trump Announces Talks
The rebuttal by the Iranian foreign ministry follows Trump saying he had held off launching new strikes on the Islamic republic to allow for further diplomatic efforts, a familiar pattern in the conflict.
Iran denied that any negotiations were taking place with the United States after President Donald Trump said new talks would begin Monday in an effort to end their war, now in its sixth month.
The rebuttal by the Iranian foreign ministry follows Trump saying he had held off launching new strikes on the Islamic republic to allow for further diplomatic efforts, a familiar pattern in the conflict.
Washington and Tehran have been at war since February 28, when the US and Israel launched surprise strikes against Iran, though months of on-off diplomacy have led to periods of relative calm.
Trump last week threatened to hit Iran “very hard”, with the US leader reportedly considering renewed attacks, including against energy infrastructure.
But the president pulled back from that threat Saturday, saying the “perimeters” of a deal were there.
Iran’s foreign ministry, however, denied there were currently negotiations taking place.
“We are not currently negotiating with the United States. Our negotiations are with Oman to secure passage through the Strait of Hormuz,” said foreign ministry spokesman Esmaeil Baqaei during a weekly press briefing.
The Hormuz shipping route is a major sticking point in efforts to end the war.
Iran has obstructed vessels attempting to pass the critical trade corridor, firing on commercial ships.
Before the war, there was free passage through the strait, but Iran now insists on retaining control and charging fees, something the US rejects.
The US-Saudi strikes killed at least 20 militants, including Iranians, according to the Hashed al-Shaabi.
Tehran has refused to let ships travel any route other than one which hugs the Iranian coast.
On Sunday, Baqaei told state television that a deal was close on managing Hormuz together with Oman, which sits on the other side of the narrow waterway.
“We are now going to reach an understanding on a route acceptable to both sides — neither the northern route nor the southern route — but one that respects the sovereign rights of both sides and safeguards our national interests and security,” he said.
But he insisted that such an agreement did not mean the reopening of the strait.
The Israeli bombardment of Lebanon has caused widespread destruction, mainly in the south, though violence has declined since the signing of a US-Iran memorandum last month and the Lebanon-Israel framework deal. Lebanon was drawn into the Middle East war on March 2 when Tehran-backed militant group Hezbollah launched attacks on Israel to avenge the killing of the Iranian leader. Israel has responded with broad strikes across Lebanon and a ground offensive.
On Sunday, a tanker off the coast of Oman reported hearing an explosion nearby, the United Kingdom Maritime Trade Operations (UKMTO) Centre reported, but the ship and crew were all reported safe.
Trump told reporters on Sunday that the new talks with Iran would cover Hormuz and ultimately the denuclearisation of Iran.
The US president said at the start of the conflict that the war was necessary to deal with Iran’s nuclear programme. Western nations accuse Iran of seeking a bomb, though Tehran insists the programme is entirely civilian in nature.
“Now what we’re doing is we’re talking to them in the form of a negotiation. It begins tomorrow afternoon,” Trump told reporters aboard Air Force One on Sunday, without providing details of the venue or participants.
The president said he had been asked by Iran as well as US partners Saudi Arabia, the United Arab Emirates and Qatar to hold off on further strikes, which he claimed would have been “the biggest attack since World War II”.
Iranian media denied that Tehran had asked Trump not to strike.
Trump has repeatedly claimed a settlement to end the war is near, only for fighting to resume. He has previously issued apocalyptic warnings to Tehran, only to later backtrack by saying diplomacy was underway.
A previous ceasefire deal between the foes fell through last month. It was supposed to open the Strait of Hormuz to ships carrying vital energy exports from the Gulf to feed the global economy.
Iranian lawmaker Hassan Ghashghavi, spokesman for the parliament’s national security commission, said on Sunday that mediators were trying to revive the US-Iran memorandum of understanding that was agreed in June.
That agreement was not intended as a final peace deal, but as a stepping stone to negotiations on a comprehensive agreement, though it did include provisions on Hormuz.
“They know that the main issue and, in fact, the key to the matter right now is the issue of the Strait of Hormuz, so yes, there is an exchange of views,” Ghashghavi said.
Posting on X, Iranian President Masoud Pezeshkian said: “We must strive to compel the enemy to remain committed to what it has signed.”
AFP
News
Kidnapped Kebbi Judge Faruku Bunza finally goes home after relaxing in abductors ‘paradise’ for one week
The High Court Judge kidnapped in Kebbi State one week ago, Justice Faruku Bunza, has regained his freedom and returned home safely after staying in abductors haven for one week.
This was contained in a statement issued on Monday, the Public Relations Officer of the Kebbi State Police Command, Bashir Usman, said the judge regained his freedom on Monday, adding that his release had been confirmed by both his family and the Kebbi State Ministry of Justice.
The police disclosed that although the kidnappers demanded a ransom, the Command maintained its policy against ransom payments.
Police authorities said security agencies have intensified investigations to track down those responsible for the abduction and ensure they are brought to justice.
The Command appealed to members of the public to provide useful information that could aid the ongoing investigation, assuring that all information received would be treated with strict confidentiality.
The police also expressed appreciation to residents and partner security agencies for their support and cooperation throughout the period of the judge’s captivity.
“We are in jubilation and full of gratitude to God for seeing our own return safely from captivity.
He was just released and has returned home now after spending one week with the bandits,” the relative said.
The family expressed appreciation to all those who stood by them during the ordeal.
“We sincerely thank and appreciate the Kebbi State Judiciary, the security agencies, and the entire people of Kebbi State who contributed in different ways, offered prayers, and sent messages of sympathy. Your concern and support gave us strength, and we are grateful for your solidarity,” the family member stated.
The source said details of how the judge was released will be made public later.
“Other details of how he was released will be made available later,” he added.
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