In its ongoing efforts to enhance transparency and promote integrity in the foreign exchange market, the Central Bank of Nigeria (CBN) has unveiled a dedicated foreign exchange price verification system. This innovative system is tailored to cater to the needs of importers seeking access to foreign exchange (forex), aligning with the CBN’s commitment to refining the forex landscape.
The CBN made this announcement on Thursday evening through a statement issued by its Trade and Exchange Department. As part of this new directive, all importers seeking forex through Form M requests are now required to furnish a price verification report obtained from the dedicated portal. This regulation will come into effect from August 31, 2023.
The introduction of the forex price verification system underscores the CBN’s resolve to streamline the forex allocation process, ensuring greater accuracy and credibility. This move is aligned with the apex bank’s broader goal of fostering a healthier and more transparent forex market that caters to the needs of various stakeholders.
By mandating importers to present price verification reports obtained from the newly established portal, the CBN aims to curb potential malpractices and ensure that forex transactions are conducted at appropriate and genuine market rates. This step is set to bolster confidence among market participants and further solidify the CBN’s commitment to maintaining the stability of the Nigerian financial ecosystem.
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.
“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.
