CBN introduces Form X to ease documentation challenge for SMEs

CBN introduces Form X to ease documentation challenge for SMEs

… As naira firms to N405 per dollar

The Central Bank of Nigeria (CBN) on Monday introduced the use of FORM X for Small and Medium Enterprises (SMEs) that requires just basic documentation.

The move is part of Apex Bank’s determination to increase foreign exchange liquidity and improve access by Small and Medium Enterprises (SMEs) and retail businesses.

Confirming the new development, the apex Bank spokesman, Isaac Okorafor, said that the innovative measure is intended to ease documentation challenges usually encountered by this category of businesses.

He further 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. He reiterated the apex bank’s determination to continue to ensure adequate supply of forex for genuine transactions in the coming days.

The nation’s currency, on Monday appreciated against the U.S dollar, closing at N405 to the dollar from N410 traded last week at the black market.

At the inter-bank spot market, the local currency was quoted at the rate of N306.05 per dollar, the same level it closed on Friday last week, data from FMDQ revealed.

The Naira is set to firm up against major currencies like the Dollar and pound sterling this week following the recent interventions by the CBN, analysts have said.

Specifically, the CBN last week opened a special Forex window for Small and Medium Enterprises (SMEs) to enable entrepreneurs import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter.

“the special interventions were necessitated by its findings that a large number of SMEs were being crowded out of the forex space by large firms and also service genuine demand for invincible like tuition fees, medical a and personal/basic travel allowance”, Okorafor said.

 

HOPE MOSES-ASHIKE

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