CBUAE Becomes First Arab Central Bank To Adopt FX Global Code For Forex Integrity

The Central Bank of the UAE (CBUAE) has become the first in the Arab world to endorse the FX Global Code. This move aligns it with other central banks and financial institutions globally, aiming to promote integrity and best practices in the foreign exchange market. The Code is a set of guidelines for sound practice in the wholesale foreign exchange market.

By signing the Statement of Commitment, CBUAE shows its dedication to upholding these principles. The FX Global Code seeks to enhance transparency, fairness, and integrity while promoting ethical standards among market participants. This contributes to global financial system stability and safety.

Khaled Mohamed Balama, Governor of CBUAE, stated, "The Central Bank’s adoption of the FX Global Code underlines its unwavering commitment to enhancing the integrity and efficiency of the UAE’s foreign exchange market, and promoting ethical practices and sound professional rules for its participants. We are honoured to be the first central bank in the Arab world to adopt this Code, and we look forward to collaborating with international regulators and market participants to ensure a transparent and well-regulated environment in accordance with best practices and professional efficiency."

This adherence marks a significant milestone for CBUAE. It reinforces their broader objectives of maintaining efficient functioning within UAE's financial market while setting a regional example. The bank remains focused on safeguarding financial stability in collaboration with regional and international partners.

The CBUAE urges licensed financial institutions in the UAE to align their practices with the FX Global Code. They should ensure adequate control systems are in place for compliance. Additionally, these institutions are encouraged to issue their own Statement of Commitment to uphold these standards.

Through this initiative, CBUAE aims not only at enhancing local market integrity but also at fostering a culture of transparency and professionalism across all participating entities. This approach ensures that ethical standards are maintained consistently throughout the region's financial sector.

The commitment by CBUAE highlights its role as a leader in promoting ethical conduct within foreign exchange markets. By adopting such measures, it sets an example for others while contributing positively towards global financial stability efforts.

With inputs from WAM