"CBN Launches Forex Price Verification Portal to Curb Bargain Dollar Tactics Amid Naira's Recovery"

The Central Bank of Nigeria (CBN) has introduced a Price Verification System (PVS) portal aimed at importers engaged in foreign currency transactions. The initiative, revealed in a circular from the Trade and Exchange Department on August 17, 2023, as reported by Punch, is set to be operational from August 31, 2023. This move is expected to bolster transparency within forex dealings by furnishing comprehensive insights into the acquisition of foreign currencies and their corresponding exchange rates.

In a statement released by the CBN, it was stated, "Following a successful pilot run and extensive training sessions conducted in collaboration with all banks, the Central Bank of Nigeria is pleased to announce the official launch of the Price Verification System (PVS)." The communiqué further clarified that all applications for Forms M must be accompanied by a valid price verification report generated through the newly established portal. The circular expressly stipulated that the price verification report is now an obligatory trade document, a prerequisite for finalizing a Form M. Additionally, the CBN emphasized that the PVS is obligatory for obtaining forex via the official channel and called upon all authorized dealers to apprise their clientele of this development. The CBN cautioned that any violations would incur appropriate penalties and urged strict adherence, concluding with a stern "Please, ensure compliance."

Regarding forex policies, the Nigerian regulatory bank has consistently maintained its stance that naira depreciation is not solely a result of market forces. Acting CBN governor, Folashodun Shonubi, articulated this perspective following a meeting with President Bola Tinubu. 

Shonubi conveyed, "The president has expressed serious concerns over certain occurrences in the foreign exchange market. Our discussions included strategies to bring about stabilization. I am of the opinion that the fluctuations observed in the parallel market are influenced not solely by genuine economic factors of supply and demand, but rather heightened by speculative activities."

By instituting the new price verification system, the CBN aims to curtail the prevalence of illicit practices and tactics employed to secure discounted dollars from banks at official rates and then vend them on the clandestine market.