The bank disclosed this in a circular issued to all authorised dealer banks on Thursday and signed by the Director, Trade and Exchange Department, Dr. Hassan Mahmud.
Price deviation is a statistical term that indicates the volatility of price in a market while allowable limit is a government-imposed trade restriction that controls the number or monetary value of goods that a country can import or export during a particular period.
Countries use quotas in international trade to help regulate the volume of trade between them and other countries.
The CBN said the review was due to global inflation and other related challenges.
Meanwhile, the International Monetary Fund predicted that global headline inflation is expected to fall to 5.8 per cent in 2024 and 4.4 per cent in 2025.
The circular reads, “Following the implementation of the Price Verification System to curb over-invoicing of imports and under-invoicing of exports, the CBN in a circular referenced TED/FEM/FPO/PUB/01/001 stated that declared prices of import items that are more than 2.5 per cent above the global average prices of the referenced item will be queried.
“However, due to global inflation and other related challenges, the CBN has reviewed the allowable limit of price deviation for exports and imports to -15% and +15% of the global average prices, respectively.
“Authorised dealer banks and the general public are hereby advised to note and comply accordingly.
“For further clarification, the PVS is not meant to determine the actual prices of items for tariffs or duty charged by government but rather to enable the CBN curtail the excess outflow of the limited foreign exchange through over-invoicing and other price manipulation activities.”
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