CBN: ‘No more tricks to buy cheap dollar’ – Central Bank of Nigeria introduces forex price verification portal as naira recovers
The Central Bank of Nigeria (CBN) has launched a price verification system (PVS) portal for importers buying foreign currencies.
The apex bank disclosed this in a Trade and Exchange Department circular on Thursday, August 17, 2023, Punch reports.
The system will go live on Thursday, August 31, 2023, enhancing transparency in forex transactions…….Continue Reading
It will provide details regarding how customers can acquire foreign currencies and at what exchange rate.
The CBN 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.
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The apex bank also noted that the system is mandatory for accessing forex through the official window and urged all authorised dealers to inform their customers of the development while warning that cases of infractions would be appropriately sanctioned.
CBN warned: “Please, ensure compliance.”
CBN forex decisions
The country regulatory bank has consistently argued that it does not believe that the market forces cause naira depreciation.
Folashodun Shonubi, the acting CBN governor, following a meeting with President Bola Tinubu, said: “The president is very concerned about some of the goings-on in the foreign exchange market. One of the things we discussed was what could be done to stabilise.
“I do not believe that the changes going on in the parallel market are driven by pure economics demand and supply, but I topped by speculative demand by people.”
With the implementation of the new price verification system, the CBN hopes to limit the chances of sharp practices and tricks used to buy cheap dollars in banks at the official rate and sell them on the black market..Continue Reading
