RBI renews the Statement of Commitment (SoC) to the FX Global Code (“Code”).

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

The FX Global Code (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 sets out principles that promote a robust, fair, liquid, open and appropriately transparent market, underpinned by high ethical standards. The Code is voluntary and applies to wholesale FX market participants.

The Code, which was initially launched on May 25, 2017, was subsequently reviewed holistically and the updated Code was published by Global FX Committee (GFXC) on July 15, 2021. Market participants are also encouraged to demonstrate their commitment to adhere to the Code through the Statement of Commitment, which is published as part of the Code. RBI is a member of GFXC. It has renewed Statement of Commitment (SoC) to the FX Global Code published as part of the Code.. 

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

“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”, said the notification of India’s central bank.