RBI Renews Commitment to FX Global Code for Foreign Exchange Markets

The Reserve Bank of India (RBI) has reaffirmed its dedication to global standards in the foreign exchange (FX) market by signing a renewed Statement of Commitment (SoC) to the FX Global Code. The move underscores the central bank’s efforts to maintain transparency, fairness and trust in the functioning of India’s wholesale FX market.

RBI’s Position On The FX Global Code

As a recognised Market Participant under the Code, RBI has reiterated that it will continue to conduct its FX operations in line with globally accepted principles. In its official release, the Bank stated, “The Bank confirms that it acts as a Market Participant as defined by the Code and is committed to conducting its FX market activities in a manner consistent with the principles of the Code. 

To this end, it has taken appropriate steps, based on the size and complexity of its activities, and the nature of its engagement in the FX market, to align its activities with the principles of the Code.”

Measures Undertaken By The Central Bank

According to the RBI, measures have been taken keeping in view the scale, complexity, and nature of its FX operations, ensuring consistency with the Code’s framework. The decision strengthens the credibility of India’s FX market by aligning practices with international benchmarks and reinforces confidence among domestic and global stakeholders.

History And Revisions Of The Code

The FX Global Code, introduced in 2017, has since undergone two major revisions, first in July 2021 and most recently in December 2024. Each update has reflected evolving market dynamics while sharpening its focus on governance, ethics, and effective execution in FX trading.

Read More: RBI Opens Up Rupee NDF Trading to Standalone Primary Dealers!

Conclusion

By renewing its Statement of Commitment, the RBI has reiterated its role as a responsible player in the global financial system. This step not only upholds the integrity of India’s foreign exchange operations but also reinforces the country’s growing stature in adhering to international best practices.

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