The Central Bank of the UAE (CBUAE) signed a Statement of Commitment to the FX Global Code, marking its position as the first central bank in the Arab world to embrace this Code. This initiative aligns CBUAE with a coalition of central banks and financial institutions globally, all dedicated to promoting integrity and best practices within the foreign exchange market.
Commitment to integrity and best practices
CBUAE’s endorsement of the Statement of Commitment reflects its unwavering dedication to the principles articulated in the FX Global Code. This Code establishes a unified framework of sound practices for the wholesale foreign exchange market, with the aim of bolstering integrity, transparency, and fairness. It also serves to disseminate suitable ethical and professional standards among market participants, which is essential for the overall stability and safety of the global financial system.
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Enhancing UAE’s foreign exchange market
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.”
Adhering to the FX Global Code represents a pivotal milestone, reinforcing CBUAE’s broader goals of ensuring the efficient operation of the UAE’s financial market while setting a standard for the region.
Safeguarding financial stability in the UAE
CBUAE further remains committed to safeguarding financial stability within the UAE and will continue to collaborate closely with its regional and international partners to promote integrity and uphold the highest standards in the foreign exchange market.
Moreover, CBUAE urges licensed financial institutions operating in the UAE to reassess their practices in relation to the FX Global Code, ensuring that they maintain robust systems of control to uphold their compliance with the Code. Additionally, these institutions are encouraged to issue their own Statement of Commitment to the FX Global Code.
