The European System of Central Banks (ESCB) recently gave unconditional support of the Foreign Exchange Global Code of Conduct, noting that central banks would abide by the code and expect their international counterparts and market participants to do the same.

The group thinks that the code will promote openness and transparency in the foreign exchange market through high ethical standards, which will make the market more robust, fair and liquid, according to a release from the ESCB.

The ESCB release noted that each of the central banks under its umbrella will support and promote the code both within their home jurisdictions and with their foreign exchange trading counterparties. The ESCB central banks expect market participants in their jurisdictions to adhere to the code as well, and the ESCB has requested that market participants endorse the Code’s Statement of Commitment.

The ESCB highlighted the importance of well-functioning financial markets in central banks’ abilities to fulfill their key roles. Central banks rely upon financial markets to implement monetary policy decisions in the real economy, according to the release.