Last updated on August 20th, 2023 at 10:39 am
PVS: Definition, Launch Date, and How It Works
Nigeria’s apex bank will launch Go- Live of the FX Price Verification System (PVS) on August 31, 2023, it said in a statement Thursday.
What is Forex Price Verification System?
The Forex Price Verification System is a foreign exchange price verification system designed for importers to have access to foreign exchange it is designed by the Central Bank of Nigeria (CBN) set for launch end of August.
Message to importers
The Trade and Exchange Department of the CBN stated that a price verification report from the portal is now mandatory for all Form M requests.
The statement reads: “All applications for Forms M shall be accompanied by a valid price verification report generated from the price verification portal.
By this circular, it means “the price verification report has become a mandatory trade document precedent to the completion of a Form M.”
The apex bank stated that before the lauch, it had conducted “pilot run and various training held with all the banks, the Central Bank of Nigeria hereby announces the Go- Live of the Price Verification System (PVS).”
CBN vowed that any case of infraction would be appropriately sanctioned. The new move is to bring sanity to Nigeria’s troubled forex exchange market. The apex bank has also reintroduced the sales of Forex to more than 4,000 licenced BDC operators in Nigeria.
How will CBN’s FX Price Verification System (PVS) Work?
Assuming you want to import Toyota Avalon 2022 from AuctionExport in Ontario, here is a real example of how the new CBN’s Price Verification System will come into play:
1) You will contact the customer support of AuctionExport to get an Invoice
2) AuctionExport Ontario will have to register on a dedicated electronic portal provided by CBN but operated by the CBN agent service provider.
3) The registration fee will apply and can be valid for 12 months.
4) The CBN’s service provider will issue AuctionExport Ontario a digital certificate. AuctionExport will sign your e-Invoice with this digital certificate.
5) Then the auto firm will provide the authenticated e-Invoice to you.
6) The CBN’s service provider will transmit the AuctionExport e-Invoice to CBN through Nigeria Single Window Portal Trade Monitoring System (TRMS).
7) If AuctionExport quoted price for your Toyota Avalon 2022 is more than 2.5% of the benchmark price, then your Form M will not be processed.
They must quote within a 2.5% band.
That’s a sample of how Go-Live of the Forex Price Verification System (PVS) will work when it is launched by August 31, 2023.
Note: This guide is an adaption of an explanation by a financial analyst Kalu Aja