RBI renews statement of commitment to global code on best market practices

The FX Global Code, developed under Bank for International Settlements, Basel, compiles the practices formulated by central banks worldwide

RBI
Photo: Bloomberg
BS Reporter Mumbai
2 min read Last Updated : Jul 21 2022 | 1:31 AM IST
The Reserve Bank of India has renewed its statement of commitment to the FX Global Code, which is a compilation of best market practices formulated by central banks worldwide.

“RBI continues to support the principles of good practices within the Code. RBI had also facilitated the formation of India Foreign Exchange Committee (IFXC) to promote adoption and adherence of the Code among FX market participants in India,” the RBI said through a press release on Wednesday.

The FX Global Code has been developed under the auspices of the Bank for International Settlements, Basel.

The FX Global Code was initially launched in May, 2017. Subsequently, after a holistic review, an updated code was published by the Global FX Committee on July 15, 2021, the RBI said.

“The Code is applicable to the Wholesale FX market participants covering sell-side, buy-side and financial intermediaries, and is voluntary in nature. The Code does not impose any legal or regulatory obligation and is intended to be a supplement to the local laws, rules and regulations,” the RBI said.

At present, the code is being implanted across the world by the Global FX Committee in coordination with Local FX Committees in each jurisdiction.

According to a statement on the website of the Global FX Committee, the purpose of the code is to promote a robust, fair, liquid, open, and appropriately transparent market.

The code aims to facilitate effective transactions at competitive prices which reflect available market information for a diverse set of market participants.

In May, 2017, the Bank of Korea, the Hong Kong Monetary Authority, the Monetary Authority of Singapore, the Reserve Bank of Australia and the RBI had jointly welcomed the publication of the code.

“Given the increasing volume of FX activity taking place in Asia, they encourage all market participants based in their jurisdictions to adhere to the principles of the Code,” read the joint statement in May 2017. 

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Reserve Bank of Indiaglobal central banksforeign exchangeCentral banksReserve Bank of AustraliaMarketsRBIBank of Korea

Next Story