CBN Introduces Price Verification System for FX Transactions

By Dipo Olowookere

The Central Bank of Nigeria (CBN) has launched a price verification system portal to allow importers and others to have access to foreign exchange (FX).

The system is to enable transparency in forex transactions, as it will have details of how customers obtained the foreign currencies and at what rate.

There had been allegations of round tripping, especially against banks and their officials, putting pressure on the Nigerian Naira at the FX market.

To tackle this, the apex bank introduced the price verification system.

In a circular issued on Thursday night, the CBN said the system is mandatory for accessing forex through the official window. It added that it would become effective from Thursday, August 21, 2023.

“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).

Consequently, with effect from August 31, 2023, 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.”

“All authorised dealers are, hereby, advised to bring this to the attention of their customers,” the notice signed by the Director for Trade and Exchange Department, Mr O.S. Nnaji, stated.

Recall that in June 2023, the central bank announced the unification of the rates of the Naira to the Dollar at all the segments of the forex market.

Initially, the exchange rate at the official window (Investors and Exporters), black market, and the peer-to-peer (P2P) almost converged, but the arbitrage later widened until it stretched to over N200 this week.