Foreign Exchange Market: CBN introduces Price Verification System( PVS), mandates commercial banks on compliance.

The Central Bank of Nigeria has announced mandatory compliance by all commercial banks to the Price Verification System.

The apex bank made this known yesterday through a Circular titled, " Go-Live of the Central Bank of Nigeria Price Verification Portal System" and signed by the Director of Trade and Exchange Department, Dr O. S Nnaji.

It reads, " Following the successful conduct of the pilot run and the various training held with 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 authorized dealers are hereby advised to bring this to the attention of their customers as any case of infraction will be appropriately sanctioned.

Please, ensure compliance."

Price Verification is the process of comparing internal prices and parameters used to mark positions to obtain position valuations to a corresponding set of independently verifiable external prices and parameters.

This system is effective in trading at the Foreign Exchange Market such as the Investor's and Exporter's Window by the CBN. It will enable the CBN to monitor and weed FX speculators from the matket.

Recall that the CBN Acting Governor, Folashodun Shonubi, after having a meeting with President Bola Tinubu, had said that the apex bank is taking a tough measure to weed speculators from the FX market.

Try and error

I hope this will work

God bless CBN. China did it and it's working perfectly for them. Even the price of ordinary lizard is regulated by the Chinese Government. Nothing like "dollar don increase" on local farm products even when transportation price is stable as we see happened in 2020 under Buhari. Also,.if this work well it can help control PMS marketers who used to remove subsidy in advance over an old subsidised petrol.

What Nigeria needs is a strict social economy on our local products. Even though it may not work as intended now in Nigeria, but as far as the process's started, it's a welcome development as it will be perfect gradually in the future.

God bless CBN, God bless Nigeria...

sirgoody:
Foreign Exchange Market: CBN introduces Price Verification System( PVS), mandates commercial banks on compliance.

The Central Bank of Nigeria has announced mandatory compliance by all commercial banks to the Price Verification System.

The apex bank made this known yesterday through a Circular titled, " Go-Live of the Central Bank of Nigeria Price Verification Portal System" and signed by the Director of Trade and Exchange Department, Dr O. S Nnaji.

It reads, " Following the successful conduct of the pilot run and the various training held with 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 authorized dealers are hereby advised to bring this to the attention of their customers as any case of infraction will be appropriately sanctioned.

Please, ensure compliance."

Price Verification is the process of comparing internal prices and parameters used to mark positions to obtain position valuations to a corresponding set of independently verifiable external prices and parameters.

This system is effective in trading at the Foreign Exchange Market such as the Investor's and Exporter's Window by the CBN. It will enable the CBN to monitor and weed FX speculators from the matket.

Recall that the CBN Acting Governor, Folashodun Shonubi, after having a meeting with President Bola Tinubu, had said that the apex bank is taking a tough measure to weed speculators from the FX market.