CBN introduces FX price verification system

The Central Bank of Nigeria (CBN) has introduced a foreign exchange price verification system, specifically designed for importers to have access to forex as part of the apex bank’s bid to sanitise the foreign exchange market

The CBN disclosed this on Thursday night in a statement from its Trade and Exchange Department, adding that a price verification report from the portal was now mandatory for all Form M requests.

The new measure takes effect from August 31, 2023.

The statement reads: “Following the successful conduct of the pilot run and various trainings held with all the banks, the Central Bank of Nigeria hereby announces the Go- Live of the Price Verification System (PVS),” the statement reads.

“All applications for Forms M shall be accompanied by a valid price verification report generated from the price verification portal.

“For the avoidance of doubt, by this circular, the price verification report has become a mandatory trade document precedent to the completion of a Form M.”

The apex bank urged all authorised dealers to inform their customers of the development, adding that the CBN would appropriately sanction any case of infraction.

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“Please, ensure compliance,” the apex bank added.

Meanwhile, the black market recorded an improvement in the naira-dollar exchange rate on Thursday,

Following the same trend, the official I&E window witnessed a positive movement on Thursday, 16th August 2023, closing at N870/$1 among traders, compared to N890/$1 on Wednesday.

At the official market, the naira appreciated by 1.92% to close at N759.86 per dollar, compared to the previous day’s closing rate of N774.77 per dollar.

The data from the I&E FX window showed that the Niara started the day at N781.66/$1, but it fluctuated during the day, reaching a peak of N799/$1 and a trough of N740 per dollar. It then recovered and ended the day at N759.86 per dollar.

A sharp drop of 36.17% in the forex supply at the I&E window was recorded on Wednesday, as it plunged from $95.79 million to $61.14 million in the intraday market session. This resulted in a $34.65 million loss in forex turnover.