CBUAE Becomes First Arab Central Bank to Adopt FX Global Code

The Central Bank of the UAE (CBUAE) has made a significant move by becoming the first central bank in the Arab world to adopt the FX Global Code, marking a major step in promoting best practices and integrity within the foreign exchange (FX) market.

The CBUAE’s commitment to this Code highlights its dedication to maintaining transparency, fairness, and ethical standards in the FX market, which contributes to the stability of the global financial system.

The FX Global Code provides a set of guidelines aimed at enhancing the integrity and transparency of the wholesale foreign exchange market. It sets ethical and professional standards that market participants are encouraged to follow, ensuring a well-regulated and efficient financial environment.

Khaled Mohamed Balama, Governor of the CBUAE, emphasized that adopting the FX Global Code reflects the bank's commitment to fostering a more transparent, efficient, and ethical FX market in the UAE. He stated,

“We are honoured to be the first central bank in the Arab world to adopt this Code, and we look forward to working with international regulators and market participants to ensure a transparent and well-regulated environment.”

This move reinforces the CBUAE’s ongoing efforts to uphold financial stability in the UAE while serving as a model for the region. The bank has also encouraged licensed financial institutions in the UAE to review their practices in line with the FX Global Code and to ensure they have the necessary control systems in place.

With this landmark decision, the CBUAE sets a new standard for FX market practices in the region, reinforcing its role as a key player in global financial stability.

News Source: Emirates News Agency