Bismarck Rewane, CEO of Financial Derivatives, stated that the Central Bank of Nigeria’s (CBN) discontinuation of the price verification system (PVS) portal indicates that it has achieved its goal. Rewane made this comment during an interview on Channels Television’s ‘Business Morning’ show.
On June 26, the CBN announced the end of the FX PVS portal, which was introduced nearly a year ago for validating all Form M applications. Form M is a document used to declare the intention to import physical goods into Nigeria.
Rewane explained that the termination of the portal suggests that Nigeria’s efforts to harmonize FX rates have been successful. He noted that the narrow difference between the official and parallel markets means there is no longer an incentive for round-tripping foreign currency.
“With the removal of the price verification system, importing goods into Nigeria is now easier. The narrow price differences between the two markets mean there is no room for arbitrage,” Rewane said. He added that this move is making the market more transparent and efficient.
The CBN’s policy, announced on June 14, unified all segments of the FX market into the investors and exporters (I&E) window. While this initially led to a significant devaluation of the naira and market fluctuations, recent weeks have seen increased stability with only marginal differences between the parallel and official FX markets.
 discontinuation of the price verification system (PVS) portal indicates that it has achieved its goal){kind=link}