India to join new global forex committee

India will soon get a seat on the Global Foreign Exchange Committee (GFXC) — a forum of central bankers and experts working towards promotion of a robust and transparent forex market.

The committee has been set up under the guidance of the Bank for International Settlements, an international financial organisation owned by 60-member central banks, representing countries from around the world. In a progress report on ‘reducing misconduct risks in the financial sector’, the Financial Stability Board (FSB) informed the G20 Summit, attended by Prime Minister Narendra Modi, here that actions to enhance conduct standards and adherence in markets include a ‘Global Code of Conduct for the Foreign Exchange Markets’.

This Code will be maintained by the new GFXC, comprising representatives from the foreign exchange committees of 16 international forex trading centres. The newly formalised GFXC, which will meet regularly, replaces a similar, but more informal organisation of eight foreign exchange committees.

The GFXC will also now include representatives from existing, or soon to be established, foreign exchange committees or similar structures in Brazil, China, India, Korea, Mexico, South Africa, Sweden and Switzerland.