The European System of Central Banks (ESCB) has reaffirmed its commitment to the FX Global Code following its latest update in December 2024. The FX Global Code, which was first introduced in 2017, sets out global principles for good practice in the foreign exchange market. These principles aim to promote integrity, effective functioning, and high ethical standards within the market.
The Global Foreign Exchange Committee has revised the Code twice, once in July 2021 and again in December 2024, to ensure it remains relevant and aligned with changes in the foreign exchange market. The ESCB believes that well-functioning financial markets are crucial for all participants and play a significant role for central banks by facilitating the smooth transmission of monetary policy to the real economy.
All members of the ESCB, including the European Central Bank (ECB), have renewed their Statements of Commitment to adhere to these principles when participating in the foreign exchange market. This action highlights their dedication to aligning internal practices with updated principles and supporting broader adherence to the Code.
The EU central banks are encouraging all foreign exchange market participants within their jurisdictions to review the updated Code and renew their own Statements of Commitment. This step is seen as vital for maintaining integrity and ensuring effective functioning within the foreign exchange market.
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