CBN Introduces “Form X” for SMEs

The Central Bank of Nigeria (CBN) has introduced “Form X” for the Small and Medium Scale Enterprises (SMEs) seeking to purchase foreign exchange.

The CBN said the decision was part of its commitment to increase Forex liquidity and improve access to Forex by SMEs and retail businesses.

The Acting Director, Corporate Communications of the CBN, Mr. Isaac Okorafor, said the measure was intended to ease the challenges with documentation usually encountered by this category of businesses.

SME applicants are required to fill the “Form X” with a supporting application letter, beneficiary invoice and bank wire transfer.

He said the objective of the new guideline was to remove obstacles usually encountered by those whose Forex needs for either visible or invisible transactions were less than or equal to $10,000.

He emphasized the CBN’s determination to continue to ensure adequate supply of Forex for genuine transactions in the coming days.

The introduction of the ‘’Form X” is coming about a week after the Central Bank opened a special Forex window for SMEs.

Despite several interventions in the Forex market by the CBN, the Naira closed at N410 to the dollar on Sunday, leading to concerns about the CBN dollar interventions.

The Deposit Money Banks did not have adequate liquidity to bid for the $100 million offered for sale by the CBN last Thursday with the banks being unable to bid for over $39 million out of the $100 million offered by the apex bank.

The CBN is planning to raise dollar sales to Bureau de Change operators from the $20,000 to $40,000 in a bid to improve liquidity and help support the Naira.

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