In a significant move for the financial sector in the Arab world, the Central Bank of the UAE (CBUAE) has become the first central bank in the region to adopt the FX Global Code. The CBUAE officially signed a Statement of Commitment to the FX Global Code on March 7, 2025, aligning itself with a growing group of central banks and financial institutions worldwide working to establish best practices and promote integrity in the foreign exchange (FX) market.
The FX Global Code, which defines a set of comprehensive guidelines for ethical and sound practices in the wholesale foreign exchange market, is designed to foster transparency, fairness, and trust. By endorsing these principles, the CBUAE seeks to strengthen the stability and safety of the global financial system while enhancing the integrity and transparency of the UAE’s foreign exchange market.
H.E. Khaled Mohamed Balama, the Governor of the CBUAE, emphasized the importance of this initiative. “The adoption of the FX Global Code underscores the Central Bank’s commitment to improving the integrity and efficiency of the UAE’s FX market,” he stated. “This move also highlights our dedication to promoting ethical practices and sound professional standards for market participants. We are proud to be the first central bank in the Arab world to make this commitment, and we look forward to collaborating with international regulators and market participants to create a more transparent and well-regulated financial environment.”
The signing of the Statement of Commitment marks a significant milestone for the CBUAE in its ongoing efforts to enhance financial stability and market confidence in the UAE. The adoption of the FX Global Code is expected to set a new standard for financial institutions in the UAE and beyond, reinforcing the country’s status as a key player in the global financial landscape.
The FX Global Code aims to improve the functioning of the FX market by encouraging ethical conduct and transparency across market participants. The Code focuses on core principles such as integrity, transparency, fairness, and professionalism in market practices. These principles are critical for fostering a more stable and effective FX market, and ultimately contribute to the health and stability of the global financial system.
As part of its commitment to the FX Global Code, the CBUAE is encouraging all licensed financial institutions operating in the UAE to review their current practices and ensure that they are aligned with the principles outlined in the Code. The central bank has also called on these institutions to implement robust systems of control to uphold the ethical and professional standards set forth in the Code, ensuring that they remain in full compliance.
In addition to its broader objectives of promoting the UAE’s financial market stability, the CBUAE’s adoption of the FX Global Code will also support efforts to foster collaboration between regional and international financial regulators. By upholding global standards for integrity and best practices in the FX market, the CBUAE aims to bolster its reputation as a financial hub in the Middle East.
This historic move also sets a positive example for other countries in the Arab world and could lead to more regional financial institutions adopting similar standards. With global financial markets increasingly interconnected, adherence to the FX Global Code will help ensure that the UAE remains a key player in global finance while maintaining a reputation for strong regulatory oversight and market integrity.
The CBUAE’s adoption of the FX Global Code represents not only a commitment to global best practices but also a strategic effort to ensure the continued health and growth of the UAE’s foreign exchange market. With this move, the central bank sets the stage for enhanced regulatory cooperation and a more robust, transparent financial environment in the region.