India will soon get a seat on the Global Foreign Exchange Committee (GFXC), a newly-constituted forum of central bankers and experts working towards promotion of a robust and transparent forex market.
Background Information:
The Financial Stability Board (FSB), an international body for global financial system, in a progress report on ‘reducing misconduct risks in the financial sector’, informed the G20 Summit, attended by Prime Minister Narendra Modi, in Hamburg, Germany 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 and updated by the new GFXC, comprising public and private sector representatives from the foreign exchange committees of 16 international forex trading centres.
About Global Foreign Exchange Committee (GFXC):
The committee was set up in London during a meeting in May 2017 of public and private sector representatives from the foreign exchange committees of 16 international forex trading centres.
- It has been set up under the guidance of the Bank for International Settlements (BIS), an international financial organisation owned by 60 member central banks, representing countries from around the world.
- The newly expanded and formalised GFXC, replaces a similar but more informal organisation of eight foreign exchange committees — namely those from Australia, Canada, Euro area, Hong Kong, Japan, Singapore, UK and the US.
- The GFXC will now include representatives from existing, or soon to be established, foreign exchange committees or similar structures in Brazil, China, India, South Korea, Mexico, South Africa, Sweden and Switzerland.
- The committee will seek to promote collaboration and communication among local foreign exchange committees and other jurisdictions with significant forex markets. It will also provide a forum for the exchange of views on market trends and developments.