RBI Reaffirms Commitment to Fair Practices in Forex Market

By siliconindia | Thursday, 25 September 2025, 03:02 Hrs

RBI renews its pledge to follow global best practices in the foreign exchange (FX) market.
The move aligns with the updated FX Global Code issued in December 2024.
RBI aims to promote transparency, fairness, and integrity in the FX market.

The Reserve Bank of India (RBI) has renewed its Statement of Commitment (SoC) to the FX Global Code, reinforcing its promise to follow globally accepted best practices in the foreign exchange market.

The FX Global Code, introduced in 2017, lays out principles that encourage honesty, transparency, and strong governance in the wholesale FX market. It has been revised twice, first in July 2021 and most recently in December 2024, to keep up with evolving market standards.

RBI confirmed it continues to act as a 'Market Participant' under the Code. This means it will ensure its currency market operations follow the updated principles of the Code.

The central bank also mentioned that it has taken necessary steps to align its forex activities with the Code. These steps were tailored to fit the scale, complexity, and nature of its operations in the FX market.

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By renewing this commitment, the RBI aims to maintain trust and efficiency in the foreign exchange ecosystem. This move also sends a clear message to other market participants such as banks, financial institutions, and traders to uphold high standards of conduct in the global currency market.

The FX Global Code is not legally binding, but it serves as a benchmark for ethical and professional behavior in currency trading. The RBI’s continued adherence shows its proactive role in promoting a stable and fair financial environment.