The Central Bank of the United Arab Emirates has signed a declaration on the adherence to the Principles of the Global Code of Conduct in the foreign exchange market. This step has become the first of its kind for the Arab world, as until now no central bank has joined the group of global central banks and financial institutions working on improving transparency and best practices in the foreign exchange market.
This act reaffirms the Central Bank's commitment to uphold the principles of the Global Code of Conduct in the foreign exchange markets, establishing rules for appropriate practice in the wholesale foreign exchange market and highlighting necessary recommendations for improving the foreign exchange market through the support of transparency, fairness and the dissemination of relevant standards and professional practice among market participants.
As noted by the head of the Central Bank Khalid Mohammed al-Hammi, accepting the Global Code of Conduct in the foreign exchange market reaffirms our ongoing commitment to strengthening the safety and effectiveness of the foreign exchange market in the Emirates, promoting adhering professional practice and rules for its participants.
Joining the Global Code of Conduct in the foreign exchange market complements broader goals endorsed by the Central Bank of the UAE to ensure the effectiveness and safety of financial markets in the country, representing a model for the region. Future efforts will be made to enhance financial stability in the country and close cooperation with regional and international partners to support higher standards in the foreign exchange market.
The Central Bank of the UAE calls upon financial institutions operating in the country to reassess their practices in accordance with the Global Code of Conduct in the foreign exchange markets and commit to supporting relevant systems for monitoring and adherence to this practice, as well as to issue statements on adherence to the Global Code of Conduct in the foreign exchange markets.
