The Central Bank of the UAE (CBUAE) has signed a Statement of Commitment to the FX Global Code, marking its position as the first central bank in the Arab world to adopt this important framework. By joining a global coalition of central banks and financial institutions, the CBUAE aims to promote integrity and best practices within the foreign exchange market.

This adoption reflects the CBUAE’s commitment to the principles outlined in the FX Global Code. The Code establishes a common set of guidelines that promote sound practices in the wholesale foreign exchange market, focusing on enhancing integrity, transparency, and fairness. These efforts also serve to disseminate ethical and professional standards among market participants, which contribute to the overall stability and safety of the global financial system.

H.E. Khaled Mohamed Balama, Governor of the CBUAE, emphasized the significance of this milestone, stating that the Central Bank’s adoption of the FX Global Code underscores its unwavering commitment to improving the integrity and efficiency of the UAE’s foreign exchange market. He expressed pride in being the first Arab central bank to adopt the Code and highlighted the intention to collaborate with international regulators and market participants to ensure a transparent and well-regulated environment.

The adherence to the FX Global Code is a crucial step that reinforces the CBUAE’s broader objectives of maintaining efficient financial market operations in the UAE, setting a precedent for the region. The CBUAE will continue to prioritize the safeguarding of financial stability and work closely with regional and international partners to uphold the highest standards within the foreign exchange market.

Furthermore, the CBUAE encourages licensed financial institutions in the UAE to review their practices in line with the FX Global Code. Institutions are advised to ensure they have adequate control systems to support their compliance with the Code, including issuing their own Statements of Commitment.