Asides existing ‘form M’ and ‘form A’, the Central Bank of Nigeria (CBN) has introduced ‘form X’, which is aimed at easing access to forex for small businesses.
In the past, those filing request for foreign exchange for invisibles used ‘form A’, while manufacturers, airlines, and those in need of forex in large quantity used ‘form M’.
But on Monday, the CBN announced the introduction of ‘form X’, solely for small and medium enterprises (SMEs).
“As part of its determination to increase foreign exchange liquidity and improve access by small and medium enterprises (SMEs) and retail businesses, the Central Bank of Nigeria (CBN) has introduced the use of FORM X for the SMEs that requires just basic documentation,” CBN said in a statement.
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Isaac Okorafor, the bank’s spokesman said “the innovative measure is intended to ease documentation challenges usually encountered by this category of businesses”.
He explained that the new form which must be completed by all SME applicants requires the applicant to fill the form with a supporting application letter as well as beneficiary invoice and bank wire transfer.
The objective of the new guideline, he added, is to remove obstacles usually encountered by those whose forex needs for either visibles or invisibles were as small as or less than $10,000.
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He reiterated the apex bank’s determination to continue to ensure adequate supply of forex for genuine transactions in the coming days.
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