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- The Central Bank of Nigeria has continued its effort to stabilise the naira against dollar at the foreign exchange market
- The latest move is the introduction of a foreign exchange price verification system for importers to buy dollars
- The portal is set to go live by the end of August 2023, and the analyst believes it could be a game-changer if it is done right
The Central Bank of Nigeria (CBN) has launched a price verification system(PVS) portal for importers buying foreign currencies.
The apex disclosed this in a Trade and Exchange Department circular on Thursday, August 17, 2023, Punch reports.
Photo credit: NurPhoto
Source: Facebook
The system will go live on Thursday, August 31, 2023, enhancing transparency in forex transactions.
It will provide details regarding how customers acquired foreign currencies and at what exchange rate.
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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.
CBN 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
CBN 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.
Nigeria’s debt stock hits N82 trillion amid CBN’s naira devaluation
Meanwhile, in another report, Legit.ng reported that Nigeria’s public debt has risen to N82 trillion from N77 trillion before the Central Bank of Nigeria (CBN) exchange rate unification, announced on Wednesday, June 14, 2023.
According to a press release by the CBN, all exchange rate windows are collapsed into the Importers and Exporters (I&E) window, showing a merger of the multiple exchange rates.
The unification has seen the naira fall to N664 per dollar and has attracted severe consequences for the nation’s economy, including a spike in public debt.
Source: Legit.ng
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