| Re: Why The CBN Has To Stop Street Dollar Trades by vengertime: 12:05pm On May 06 |
They're useless for thinking it's crypto people that are destroying the economy, meanwhile Aboki people have been the ones doing the damages for decades |
| Re: Why The CBN Has To Stop Street Dollar Trades by SoNature(m): 12:06pm On May 06 |
Blaze14k:
When we tell people that the north is the problem of this country they become furious and attack. Look at most things that puts the economy and security of this country at risk it's mostly from the north. These people are highly corrupt and they can never change Stop the name-calling. Nigeria has a problem. The president, if he genuinely wants to fix the country, should grow some balls and do the right thing. |
| Re: Why The CBN Has To Stop Street Dollar Trades by fredwill1357(m): 12:12pm On May 06 |
Nbkay23:
It’s no longer news how Dollar is skyrocketing in our Economy Nigeria Today, and the Devaluation of our Naira, well I’ll like to share my own 2percent on the situation.
exchange Board in Tokyo Japan, You can Visibly see the chart I created a thread proposing the solution. https://www.nairaland.com/8053508/how-nigeria-other-developing-countries.Perhaps the government and CBN prefer the crooked way. |
| Re: Why The CBN Has To Stop Street Dollar Trades by TenQ: 12:13pm On May 06 |
Nbkay23:
It’s no longer news how Dollar is skyrocketing in our Economy Nigeria Today, and the Devaluation of our Naira, well I’ll like to share my own 2percent on the situation.
Considering the fact that Nigeria only spends naira, But the availability of dollars to some, in the economy is Devastating. These are the Big business corps, BDC’s operators and Particularly the Government. The reason for our currency devaluation, here I’ll tell you now..I’m an economist and a part time forex trader, so believe it what I’m telling is true.
The Cbn exchange dollar thru the Bureau d change to the public, the way they do it, is By releasing Dollars to particular registered BDC traders as they claim, Dollars is released to this Individuals to sell to the General public daily, What these people do is, they sell at a particular rate and increase the rate so as to Have some dollars left in stock, By hoarding them, They come back to the bank next day and deposit naira, Saying Demand of Dollars is High, Next day collecting of dollars take place in the Bank again, the bank doesn’t have a choice than to increase the rate cos the rate of return is Low in Value, Definitely business has been done and profit has been made. The issue is Why can’t the CBN put a stop to Street Trading, Aboki’s calling people dollar, dollar on the streets and Devise a Means of Transaction using the Bank for Transparency while Dealing thru the Accounts of the BDC’s, this way you can avoid Laundering of money, illegal transactions and Consumption of  Government funds, Most Politicians in Abuja prefer to use the Bureau d change cos it’s a seamless way of Transaction, No one can hold you, No amount is too much, Infact the bigger the amount the Better they friends with you. Street transaction of Dollars is still the same as Spending dollars in the economy. You won’t see other Countries allowing other currencies to be Transferable in the Streets, We have to put a stop to this Menace if we want to save this Country from Collapsing  , Using Debts to hold the naira is not the way, Defunding the Banks of Dollar deposits is not the way, Defunding the crypto holders is not even the way, We have to let Transparency and Records take control of the Exchange system, Not in the streets, But banks. Slots can be made Available for Preferable BDC’s Vendors, And Stop Doing Business with the Economy 
Below in this picture is a woman walking Pass the exchange Board in Tokyo Japan, You can Visibly see the chart Unfortunately, the only solution is
1. Industrialise the nation so that we don't need to import everything we consume. This is putting a lot of pressure on Dollar demand.
2. Make it easy for anyone to walk into any bank to change Naira to Dollar and vise versa without the stringent conditions and paperwork. |
| Re: Why The CBN Has To Stop Street Dollar Trades by IAmHim1: 12:14pm On May 06 |
Nbkay23, YOUR POST ONLY SOLVES THE SYMPTOMS Not the cause NOT THE CAUSE.... THIS IS NOT THE CAUSE OF NIGERIA DILEMA, all due respect...but you're seeing things from a wrong angle Nigeria doesn't produce so people exchange the dollars to import...even though they could exchange the dollar for other currencies because not only America has the goods the importers want to buy If you ban BDC, it will make it hard for people to get dollar hence driving the price UP. BDCs are the poison child of the CBN but a necessary evil in the grand scheme of things till Nigeria becomes a producing country that will make its citizen not import but also make foreign investors to buy and hold the naira https://www.nairaland.com/8081414/nigerias-inflation-state-federal-governmentsThat up there IS the real cause and THE SOLUTION TO GETTING NIGERIA OFF ITS ECONOMIC CRISIS You have stomach pain because you keep eating spoilt sour foods. THEN YOU STOP eating the spoilt food instead of taking deworming medicines and agbo etc You're fat because you keep eating excess calories. Then stop eating excess instead of running to gym every Saturdays. That's the key to happiness. STOP what hurts you first, instead of doing more things to make you happy. NIGERIA can be happy. All it has to do is STOP doing the things that makes it sad, instead of trying to do more happier things, just like this your post suggests Nbkay23:
It’s no longer news how Dollar is skyrocketing in our Economy Nigeria Today, and the Devaluation of our Naira, well I’ll like to share my own 2percent on the situation.
Considering the fact that Nigeria only spends naira, But the availability of dollars to some, in the economy is Devastating. These are the Big business corps, BDC’s operators and Particularly the Government. The reason for our currency devaluation, here I’ll tell you now..I’m an economist and a part time forex trader, so believe it what I’m telling is true.
The Cbn exchange dollar thru the Bureau d change to the public, the way they do it, is By releasing Dollars to particular registered BDC traders as they claim, Dollars is released to this Individuals to sell to the General public daily, What these people do is, they sell at a particular rate and increase the rate so as to Have some dollars left in stock, By hoarding them, They come back to the bank next day and deposit naira, Saying Demand of Dollars is High, Next day collecting of dollars take place in the Bank again, the bank doesn’t have a choice than to increase the rate cos the rate of return is Low in Value, Definitely business has been done and profit has been made. The issue is Why can’t the CBN put a stop to Street Trading, Aboki’s calling people dollar, dollar on the streets and Devise a Means of Transaction using the Bank for Transparency while Dealing thru the Accounts of the BDC’s, this way you can avoid Laundering of money, illegal transactions and Consumption of Government funds, Most Politicians in Abuja prefer to use the Bureau d change cos it’s a seamless way of Transaction, No one can hold you, No amount is too much, Infact the bigger the amount the Better they friends with you. Street transaction of Dollars is still the same as Spending dollars in the economy. You won’t see other Countries allowing other currencies to be Transferable in the Streets, We have to put a stop to this Menace if we want to save this Country from Collapsing , Using Debts to hold the naira is not the way, Defunding the Banks of Dollar deposits is not the way, Defunding the crypto holders is not even the way, We have to let Transparency and Records take control of the Exchange system, Not in the streets, But banks. Slots can be made Available for Preferable BDC’s Vendors, And Stop Doing Business with the Economy
Below in this picture is a woman walking Pass the exchange Board in Tokyo Japan, You can Visibly see the chart |
| Re: Why The CBN Has To Stop Street Dollar Trades by Blaze14k: 12:15pm On May 06 |
SoNature:
Stop the name-calling. Nigeria has a problem. The president, if he genuinely wants to fix the country, should grow some balls and do the right thing. He doesn't have that balls cos he will lose a lot of friends. It takes a man who has nothing to lose to grow such balls. I doubt tinubu is willing to risk it |
| Re: Why The CBN Has To Stop Street Dollar Trades by bigiyaro(m): 12:23pm On May 06 |
2 Likes |
| Re: Why The CBN Has To Stop Street Dollar Trades by Baxilexi(m): 12:28pm On May 06 |
My simple model solution to the macroeconomic problem.
Country = Type A (consumers, salary earners, extremes of age) + Type B (businessmen local and international) + CBN + Blackmarket-BM.
Let’s say the money in circulation in this hypothetical country is 1M NGN and 5000 USD, exchange rate 1000NGN to 1 USD.
Type A 70% of the population control - 500,000NGN
Type B 30% of the population control - 500,000NGN
Type B requires USD for their businesses so..
Type B (500,000NGN) * CBN (5000USD)
Type B (5000USD) * CBN (500000NGN)
Type B sends the USD out to import goods sells to type A (500,000NGN) net profit after tax.
CBN via exports replenishes (5000$)
Type B - CBN, Type B - Type A, CBN - Type B and the cycle continues.
If the CBN cannot meet the demands of Type B.
Type B * Blackmarket USD at 20% more.
Type B transfers the cost to Type A as inflation.
CBN needs to supply Type A more money to afford basket of goods at 20% inflation = pseudo inflation (print more money).
How can this be remedied.
The companies that Type B buys its goods from don’t alter the price ever so frequently. And Type A are the ones badly hurt by inflation.
My proposition to the CBN, introduce Type C (multinational retail chains, they have price stability across continents)
Characteristics of Type C.
They will work with the governments exchange rate, have local bank accounts, comply with governmental regulations. They have regulated profit margins, I.e if 4000$ worth of products are brought into the country, regulatory bodies can forecast the amount of profit that would be made which may be circa 5000$.
Provided that the government can provide type C with an enabling business environment to lower its cost of operation (lower taxes, custom duties) this would help them retain the international price of their products).
I visited a clothing brand in 2 different countries with different currencies and discovered that the prices were the same after conversion.
The inflation we’re experiencing is a mixture of greedy business owners, high government taxes and black market influence.
The new model would be
Type A buys from Type C cutting pass the 20% inflation of Type B.
Type B experiences low patronage and begins to by from Type C.
Blackmarket gets low patronage and inflation drops.
Now this model can be skewed by variables like
Government officials that are suppose to be Type A depleting the CBN.
But by and large, it’s time to open boarders and invite global food chains to set up shop in Nigeria… it will impede local production but it will stabilize the currency and food prices.
If you think there’s an error in this model kindly point it out. 1 Like |
| Re: Why The CBN Has To Stop Street Dollar Trades by Beautifulday: 12:30pm On May 06 |
kingsways:
The CBN do not have to and indeed do not have the capacity to stop street Dollar sales
What the government needs to do is put the right policies in place and that is not the case at the moment.
There should be harmony between the Fiscal Policy and the Monetary Policy. It should be possible to source FX through the financial system for any transaction that is legally possible in Nigeria. This will significantly reduce the demand for USD on the street
It is a policy thing, you can’t go from street to street pursuing people who are selling Dollars . Says who? If you are a BDC registered agent, you don't have business handling cash. All dollar should be sold via electronic means so it can be monitored. Enough of this handing out cash. |
| Re: Why The CBN Has To Stop Street Dollar Trades by Beautifulday: 12:32pm On May 06 |
|
| Re: Why The CBN Has To Stop Street Dollar Trades by Konquest: 12:34pm On May 06 |
Nbkay23:
It’s no longer news how Dollar is skyrocketing in our Economy Nigeria Today, and the Devaluation of our Naira, well I’ll like to share my own 2percent on the situation.
Considering the fact that Nigeria only spends naira, But the availability of dollars to some, in the economy is Devastating. These are the Big business corps, BDC’s operators and Particularly the Government. The reason for our currency devaluation, here I’ll tell you now..I’m an economist and a part time forex trader, so believe it what I’m telling is true.
The Cbn exchange dollar thru the Bureau d change to the public, the way they do it, is By releasing Dollars to particular registered BDC traders as they claim, Dollars is released to this Individuals to sell to the General public daily, What these people do is, they sell at a particular rate and increase the rate so as to Have some dollars left in stock, By hoarding them, They come back to the bank next day and deposit naira, Saying Demand of Dollars is High, Next day collecting of dollars take place in the Bank again, the bank doesn’t have a choice than to increase the rate cos the rate of return is Low in Value, Definitely business has been done and profit has been made. The issue is Why can’t the CBN put a stop to Street Trading, Aboki’s calling people dollar, dollar on the streets and Devise a Means of Transaction using the Bank for Transparency while Dealing thru the Accounts of the BDC’s, this way you can avoid Laundering of money, illegal transactions and Consumption of Government funds, Most Politicians in Abuja prefer to use the Bureau d change cos it’s a seamless way of Transaction, No one can hold you, No amount is too much, Infact the bigger the amount the Better they friends with you. Street transaction of Dollars is still the same as Spending dollars in the economy. You won’t see other Countries allowing other currencies to be Transferable in the Streets, We have to put a stop to this Menace if we want to save this Country from Collapsing , Using Debts to hold the naira is not the way, Defunding the Banks of Dollar deposits is not the way, Defunding the crypto holders is not even the way, We have to let Transparency and Records take control of the Exchange system, Not in the streets, But banks. Slots can be made Available for Preferable BDC’s Vendors, And Stop Doing Business with the Economy
Below in this picture is a woman walking Pass the exchange Board in Tokyo Japan, You can Visibly see the chart |
| Re: Why The CBN Has To Stop Street Dollar Trades by ITbomb(m): 12:35pm On May 06 |
Using the same bank that can't guarantee the supply of Naira?
You never hear exchange rate of Naira is 1,100 cash Naira to 1,000 bank Naira |
| Re: Why The CBN Has To Stop Street Dollar Trades by Beautifulday: 12:35pm On May 06 |
ugo227:
I agree you might be a forex dealer but you are definitely not an economist sorry.
Which nonsense economics? Do we have any economist in Nigeria? |
| Re: Why The CBN Has To Stop Street Dollar Trades by Idaytesj29(m): 12:38pm On May 06 |
Nbkay23:
It’s no longer news how Dollar is skyrocketing in our Economy Nigeria Today, and the Devaluation of our Naira, well I’ll like to share my own 2percent on the situation.
Considering the fact that Nigeria only spends naira, But the availability of dollars to some, in the economy is Devastating. These are the Big business corps, BDC’s operators and Particularly the Government. The reason for our currency devaluation, here I’ll tell you now..I’m an economist and a part time forex trader, so believe it what I’m telling is true.
The Cbn exchange dollar thru the Bureau d change to the public, the way they do it, is By releasing Dollars to particular registered BDC traders as they claim, Dollars is released to this Individuals to sell to the General public daily, What these people do is, they sell at a particular rate and increase the rate so as to Have some dollars left in stock, By hoarding them, They come back to the bank next day and deposit naira, Saying Demand of Dollars is High, Next day collecting of dollars take place in the Bank again, the bank doesn’t have a choice than to increase the rate cos the rate of return is Low in Value, Definitely business has been done and profit has been made. The issue is Why can’t the CBN put a stop to Street Trading, Aboki’s calling people dollar, dollar on the streets and Devise a Means of Transaction using the Bank for Transparency while Dealing thru the Accounts of the BDC’s, this way you can avoid Laundering of money, illegal transactions and Consumption of Government funds, Most Politicians in Abuja prefer to use the Bureau d change cos it’s a seamless way of Transaction, No one can hold you, No amount is too much, Infact the bigger the amount the Better they friends with you. Street transaction of Dollars is still the same as Spending dollars in the economy. You won’t see other Countries allowing other currencies to be Transferable in the Streets, We have to put a stop to this Menace if we want to save this Country from Collapsing , Using Debts to hold the naira is not the way, Defunding the Banks of Dollar deposits is not the way, Defunding the crypto holders is not even the way, We have to let Transparency and Records take control of the Exchange system, Not in the streets, But banks. Slots can be made Available for Preferable BDC’s Vendors, And Stop Doing Business with the Economy
Below in this picture is a woman walking Pass the exchange Board in Tokyo Japan, You can Visibly see the chart If Banks and BDCs cannot be trusted. CBN has branches in almost all state capitals, all Dollar sales should be done by the CBN jare |
| Re: Why The CBN Has To Stop Street Dollar Trades by Dee60: 12:38pm On May 06 |
Kelklein:
You have a point.. the only problem is that even the Banks are crooked.. they get Dollar allocations too like the BDCs but they hoard instead of transacting with them..
The EFCC is trying to clean up the system of street-trading and we can only implore them to sustain the monentum.. it's going to be hard tho. They deserve some commendation for the little they have done esp in Zone4 Abuja.. that place used to be a free-for-all but there is some level of moderation now..
An analogy is almost like those that trade fuel on the road. It is those who need them and patronise them that are encouraging the trade. If nobody is buying, you won't see them on street.. but then you have to move your car from A to B and the fueling stations have endless queues or no fuel sometimes..
The wayout is to boost your foreign reserve via exports and productivity, and discourage the need for Dollars as much as possible.. Productivity is a double edged sword.. because it makes Items people would pay dollars to import available locally and earns you foreign exchange when you export excess to outside country...
the government only pay lip services to banning transactions in dollars in the country. People still pay their wards school fees in dollars.. The political class are still converting their loots into dollars on a daily basis.. the EFCC and NFIU needs to device a means to nip money laundering at source.. but again the Banks have not been helping..!
Nigeria is wild.. Banks cannot be crooked unless the bankers' bank itself is crooked! |
| Re: Why The CBN Has To Stop Street Dollar Trades by Dee60: 12:39pm On May 06 |
Idaytesj29:
If Banks and BDCs cannot be trusted. CBN has branches in almost all state capitals, all Dollar sales should be done by the CBN jare Invitation to disaster. You really want civil servants to handle sales? The corruption will stink to the skies. |
| Re: Why The CBN Has To Stop Street Dollar Trades by obaidan: 12:41pm On May 06 |
The people will stop it are the same people benefiting from it. They will not stop it. You think it's all those dirty aboki ubsee on the street that own the BDC businesses? |
| Re: Why The CBN Has To Stop Street Dollar Trades by adewale2011(m): 12:54pm On May 06 |
When Bad Money enter the Economy, Good Money goes into hiding....#Your point is useless because the Government is the Main function for the Naira value. Read what is called Fiat and you know where our problem is coming from. All Fiat CURRENCY eventually goes to Zero of Real Money. The Government is printing more Naira than you can earn.
Read my Signature Please |
| Re: Why The CBN Has To Stop Street Dollar Trades by Idaytesj29(m): 12:56pm On May 06 |
Dee60:
Invitation to disaster. You really want civil servants to handle sales? The corruption will stink to the skies. You are correct, but I think it should be digitalized. Indicate usage and where you want to pay the USD to and CBN do it for you. Instead of selling Dollars to people before people start deciding what to use it for. This will also reduce money laundering |
| Re: Why The CBN Has To Stop Street Dollar Trades by hooklover: 12:56pm On May 06 |
So if we are serious first of all our crude oil must be sold in naira. It will shore demand 4 naira. U cannot be selling inndollars crude the economy main stay to take afvantage of dillar And tell d masses not to look 4 dollar .
Customs should give clear goods in naira. Wat is d meaning of using dollar equivalent to clear ur goods ajusting fx every time..
All the cbn solutions ate artificial figing the symptoms not the source of sickness.
Govt need to crewt enabling enviromet indudtalize the country to allow us gain fx from export .
Majority of fx biz are by Governors wen they pay dem allocation they look for dollars and hide loot in doolars. Govt and efcc know but dey chiose to chase shafows
Anything short of that na scam.. |
| Re: Why The CBN Has To Stop Street Dollar Trades by jaxxy(m): 12:58pm On May 06 |
U should be asking why the commercial banks themselves with their thousands of branches nationwide can't supply dollars directly to their customers via the banking system instead of u telling few BDC operators to supply dollars via the banking system. |
| Re: Why The CBN Has To Stop Street Dollar Trades by onadana: 12:58pm On May 06 |
Kelklein:
You have a point.. the only problem is that even the Banks are crooked.. they get Dollar allocations too like the BDCs but they hoard instead of transacting with them..
The EFCC is trying to clean up the system of street-trading and we can only implore them to sustain the monentum.. it's going to be hard tho. They deserve some commendation for the little they have done esp in Zone4 Abuja.. that place used to be a free-for-all but there is some level of moderation now..
An analogy is almost like those that trade fuel on the road. It is those who need them and patronise them that are encouraging the trade. If nobody is buying, you won't see them on street.. but then you have to move your car from A to B and the fueling stations have endless queues or no fuel sometimes..
The wayout is to boost your foreign reserve via exports and productivity, and discourage the need for Dollars as much as possible.. Productivity is a double edged sword.. because it makes Items people would pay dollars to import available locally and earns you foreign exchange when you export excess to outside country...
the government only pay lip services to banning transactions in dollars in the country. People still pay their wards school fees in dollars.. The political class are still converting their loots into dollars on a daily basis.. the EFCC and NFIU needs to device a means to nip money laundering at source.. but again the Banks have not been helping..!
Nigeria is wild.. They know all these analogies.We have being ruled by Ali Baba and the forty thieves.The elites are the problem of this country. 1 Like |
| Re: Why The CBN Has To Stop Street Dollar Trades by ChybuzzDD(m): 1:00pm On May 06 |
Nbkay23:
It’s no longer news how Dollar is skyrocketing in our Economy Nigeria Today, and the Devaluation of our Naira, well I’ll like to share my own 2percent on the situation.
Considering the fact that Nigeria only spends naira, But the availability of dollars to some, in the economy is Devastating. These are the Big business corps, BDC’s operators and Particularly the Government. The reason for our currency devaluation, here I’ll tell you now..I’m an economist and a part time forex trader, so believe it what I’m telling is true.
The Cbn exchange dollar thru the Bureau d change to the public, the way they do it, is By releasing Dollars to particular registered BDC traders as they claim, Dollars is released to this Individuals to sell to the General public daily, What these people do is, they sell at a particular rate and increase the rate so as to Have some dollars left in stock, By hoarding them, They come back to the bank next day and deposit naira, Saying Demand of Dollars is High, Next day collecting of dollars take place in the Bank again, the bank doesn’t have a choice than to increase the rate cos the rate of return is Low in Value, Definitely business has been done and profit has been made. The issue is Why can’t the CBN put a stop to Street Trading, Aboki’s calling people dollar, dollar on the streets and Devise a Means of Transaction using the Bank for Transparency while Dealing thru the Accounts of the BDC’s, this way you can avoid Laundering of money, illegal transactions and Consumption of Government funds, Most Politicians in Abuja prefer to use the Bureau d change cos it’s a seamless way of Transaction, No one can hold you, No amount is too much, Infact the bigger the amount the Better they friends with you. Street transaction of Dollars is still the same as Spending dollars in the economy. You won’t see other Countries allowing other currencies to be Transferable in the Streets, We have to put a stop to this Menace if we want to save this Country from Collapsing , Using Debts to hold the naira is not the way, Defunding the Banks of Dollar deposits is not the way, Defunding the crypto holders is not even the way, We have to let Transparency and Records take control of the Exchange system, Not in the streets, But banks. Slots can be made Available for Preferable BDC’s Vendors, And Stop Doing Business with the Economy
Below in this picture is a woman walking Pass the exchange Board in Tokyo Japan, You can Visibly see the chart You might be making some good points, but your writing skills are very poor. Try and improve on that |
| Re: Why The CBN Has To Stop Street Dollar Trades by maxiart2(m): 1:05pm On May 06 |
Make banks dey sell dollars to customers directly then no gri. Na to dey sell am to those middle men who in turn hoard it and/or sell at a higher price ddy sweet them.
Until the right thing is done, nothing will change. |
| Re: Why The CBN Has To Stop Street Dollar Trades by Kelklein(m): 1:08pm On May 06 |
omoredia:
That's a lie. Even bank staff can't get fx cash from their own banks they get directed back to abokis again. who is talking about Bank staff.. fx businesses are controlled directly from above management |
| Re: Why The CBN Has To Stop Street Dollar Trades by omoredia: 1:10pm On May 06 |
Kelklein:
who is talking about Bank staff.. fx businesses are controlled directly from above management Who do they report to? Is it not the govt? U people are looking for the people that have caused the problem to bring about a solution. Good luck with that |
| Re: Why The CBN Has To Stop Street Dollar Trades by bayplus: 1:13pm On May 06 |
Badgers14:
I have been saying this for years..
But that's how the banks make most of their money, " round tripping"
Also those BDC operators have people in "high" places and corrupt politicians use them to "wash" their loot.
I mentioned before in my previous posts thay CBN injecting dollars in the market is not the solution, it gives naira a temporary reprieve but exacerbate the situation further in the long run and some people started calling me names..etc.
I want Naira to strong, the Nigerian economy to be stronger but we must be willing to hold the bull by the horn and make some tough choices and decisions devoid of tribes and our political association.
It's one of those things in Nigeria, we know the problem and the solution is relatively easy [/i] but nahhh we turn blind eyes and start a tribal war or political party war instead of turning all our energy to the issues at hand. So what are the easy solutions according to you?  |
| Re: Why The CBN Has To Stop Street Dollar Trades by ubev01(m): 1:15pm On May 06 |
Welcome BACK to Nigeria. |
|
| Re: Why The CBN Has To Stop Street Dollar Trades by alt3r3g0: 1:30pm On May 06 |
Nbkay23:
It’s no longer news how Dollar is skyrocketing in our Economy Nigeria Today, and the Devaluation of our Naira, well I’ll like to share my own 2percent on the situation.
Considering the fact that Nigeria only spends naira, But the availability of dollars to some, in the economy is Devastating. These are the Big business corps, BDC’s operators and Particularly the Government. The reason for our currency devaluation, here I’ll tell you now..I’m an economist and a part time forex trader, so believe it what I’m telling is true.
The Cbn exchange dollar thru the Bureau d change to the public, the way they do it, is By releasing Dollars to particular registered BDC traders as they claim, Dollars is released to this Individuals to sell to the General public daily, What these people do is, they sell at a particular rate and increase the rate so as to Have some dollars left in stock, By hoarding them, They come back to the bank next day and deposit naira, Saying Demand of Dollars is High, Next day collecting of dollars take place in the Bank again, the bank doesn’t have a choice than to increase the rate cos the rate of return is Low in Value, Definitely business has been done and profit has been made. The issue is Why can’t the CBN put a stop to Street Trading, Aboki’s calling people dollar, dollar on the streets and Devise a Means of Transaction using the Bank for Transparency while Dealing thru the Accounts of the BDC’s, this way you can avoid Laundering of money, illegal transactions and Consumption of Government funds, Most Politicians in Abuja prefer to use the Bureau d change cos it’s a seamless way of Transaction, No one can hold you, No amount is too much, Infact the bigger the amount the Better they friends with you. Street transaction of Dollars is still the same as Spending dollars in the economy. You won’t see other Countries allowing other currencies to be Transferable in the Streets, We have to put a stop to this Menace if we want to save this Country from Collapsing , Using Debts to hold the naira is not the way, Defunding the Banks of Dollar deposits is not the way, Defunding the crypto holders is not even the way, We have to let Transparency and Records take control of the Exchange system, Not in the streets, But banks. Slots can be made Available for Preferable BDC’s Vendors, And Stop Doing Business with the Economy
Below in this picture is a woman walking Pass the exchange Board in Tokyo Japan, You can Visibly see the chart You have left the main cause (corruption) to go after someone who is just doing business (BDC operator) News flash, street bdc operators have been in operation since forever. Even during the military regime. They are not the root cause or the solution. Gandollar does not go under tree to get dollars. |
| Re: Why The CBN Has To Stop Street Dollar Trades by DryMouth: 1:37pm On May 06 |
vengertime:
They're useless for thinking it's crypto people that are destroying the economy, meanwhile Aboki people have been the ones doing the damages for decades If you are so sure it is the Abokis that are damaging the economy by selling dollars in the street, why don't you go and start buying and selling dollars on the street too and become a millionaire. |
| Re: Why The CBN Has To Stop Street Dollar Trades by Badgers14: 1:45pm On May 06 |
bayplus:
So what are the easy solutions according to you? If you need to pay your child's school fees abroad, if you need to pay your supplier in China, if you need to pay medical bills abroad.. Just walk into your bank and your bank will withdraw money from your NAIRA account and convert to the foreign currency at the official rate and effect the transaction abroad. No business, whether private or government should transact business in Nigeria in any other currency other than the Naira. This is by far the quickest.. no need for FG to deplet foreign reserve to pump in dollars to BDC. Crude oil etc, should be sold in NAIRA. |
