CBN introduces price verification system portal for FX transactions

The Central Bank of Nigeria (CBN) has introduced a foreign exchange price verification system designed for importers to have access to forex, as it moves to sanitise the foreign exchange market by granting importers more access to forex.

The apex bank in a statement from its trade and exchange department, said that starting from August 31,2023,  a price verification report from the portal would be made mandatory for all Form M requests.

Consequently,  all applications for Forms M shall be accompanied by a valid price verification report generated from the price verification portal.

The statement  which was signed by O.S. Nnaji ,the director for trade and exchange department, read,“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),”

“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 CBN also urged all authorised dealers to ensure compliance and  inform their customers of the development, warning that any case of infraction would be appropriately sanctioned.

The price verification system is expected to address persistent allegations of round tripping, especially against banks and their officials, which is believed to have put pressure on the Nigerian Naira at the FX market.

According to the CBN, the price verification system would enable it to appropriately distinguish those who genuinely need forex and halt the crisis in the sector.