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What is FX Global Code?

Reserve Bank of India (RBI) has signed its renewed Statement of Commitment (SoC) to the FX Global Code. 

What is FX Global Code?

FX Global Code is a compilation of best market practices, formulated by Central Banks and market participants, developed under the auspices of Bank for International Settlements (BIS), Basel.

The Code, which was initially launched on May 25, 2017, was subsequently reviewed holistically and the updated Code was published by Global FX Committee on July 15, 2021.

When is FX Global Code applicable?

FX Global 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. 

Where is FX Global Code implemented?

FX Global Code is currently being implemented globally by the Global FX Committee (GFXC) in co-ordination with the Local FX Committee (LFXC) in each jurisdiction. 

Is FX Global Code implemented in India?

RBI is a member of the Global FX Committee (GFXC). 

RBI, along with four major Central Banks (BOK, HKMA, MAS, RBA), had welcomed the publication of the Code through joint media release dated May 25, 2017. Later, RBI had issued its Statement of Commitment on April 18, 2019.

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. 

In July 2022, RBI has signed its renewed Statement of Commitment to the FX Global Code.


References

Reserve Bank of India. (2022, July 20). 'Reserve Bank of India renews its Statement of Commitment to the FX Global Code'. Retrieved from https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=54062


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