I want to know, is it compulsory to use CBN exchange rate? How does exchange rate really work?

Aside the basic that import/export affects currency how does money work?

Why can't CBN pump in more money? Or at what point can it pump in money? Why can't I exchange money below CBN rate? How does forex guys who exchange money make their profit?

I beg make una help me understand how this things work. If you can't answer everything answer the one that you. I'll appreciate.

But some of your questions are not making sense, how can you exchange money below CBN rate, it will even be hard for you as an individual to exchange money with CBN rate, but you can with bank rate which is a bit higher, only if you apply for PTA/BTA, Form M, Form A, Medical expenses outside the country or living expenses as an international student elsewhere.
Apart from above mentioned, I doubt if you go see CBN rate elsewhere...

So far these are the lessons I learnt about money
1. Profit is loss, loss is profit
2. Loss equal buying someone's debt
3. Profit equals selling your debt to some one
4. Money ! == happiness, but money can give temporary happiness
5. Slow and steady money comes to you
6. Fast money == crash and burn
......... Etc

The CBN exchange rate is for Emefiele, Buhari and the people that matters to this government....


As an ordinary person, you can't get a CBN exchange rate directly from CBN, but they seek it to those abokis at zone4 and they are the ones moving the exchange rate to N900 while the CBN isn't doing anything about it..The parallel market gets hiked at well...

CBN should allow individuals have access to this exchange and not just politician kids traveling abroad or schooling abroad.

uchman:
But some of your questions are not making sense, how can you exchange money below CBN rate, it will even be hard for you as an individual to exchange money with CBN rate, but you can with bank rate which is a bit higher, only if you apply for PTA/BTA, Form M, Form A, Medical expenses outside the country or living expenses as an international student elsewhere.
Apart from above mentioned, I doubt if you go see CBN rate elsewhere...

I have figured a way to create a system that offers CBN rate, my only worry is the financial risk in that.

To understand the risk ahead I need to find out how do people who exchange money make their profit.

JASONjnr:
The CBN exchange rate is for Emefiele, Buhari and the people that matters to this government....


As an ordinary person, you can't get a CBN exchange rate directly from CBN, but they seek it to those abokis at zone4 and they are the ones moving the exchange rate to N900 while the CBN isn't doing anything about it..The parallel market gets hiked at well...

CBN should allow individuals have access to this exchange and not just politician kids traveling abroad or schooling abroad.

When the abokis exchange this money what do they do with the foreign currency they collect? How do they make profit?

Aboki make profit by doing exchange
Most of them hoard foreign currencies so when there is high demand , they increase the price & sell
But doing regular exchange no much gain but still if it’s bulk they make gain

Let’s say today a dollar is 720 naira , Aboki would buy at 710 or 700 from any random person willing to Sell ; depends on negotiation and sell at 720 to someone who needs it . So the 10 naira or 20 naira add on is their profit .
They are like middlemen
It’s not like they get dollars directly from bank at bank rates

As some one mentioned earlier, banks only give dollars at bank rates for BTA, PTA, Form A & M .

BuyACar:


When the abokis exchange this money what do they do with the foreign currency they collect? How do they make profit?

Talktalk2022:
Aboki make profit by doing exchange
Most of them hoard foreign currencies so when there is high demand , they increase the price & sell
But doing regular exchange no much gain but still if it’s bulk they make gain

Let’s say today a dollar is 720 naira , Aboki would buy at 710 or 700 from any random person willing to Sell ; depends on negotiation and sell at 720 to someone who needs it . So the 10 naira or 20 naira add on is their profit .
They are like middlemen
It’s not like they get dollars directly from bank at bank rates

As some one mentioned earlier, banks only give dollars at bank rates for BTA, PTA, Form A & M .

I think somehow I'm getting the logic.

My economics is not good. Help me understand this part.

Let's say I have some naira and someone comes and ask me for my naira and I decide to give it to them and pick up their dollar. Fine at the market rate, maybe I made N10 today. Tomorrow let's say the value of that dollar might reduce, I'm still holding the dollar of yesterday have I not lost?

Talktalk2022:
Aboki make profit by doing exchange
Most of them hoard foreign currencies so when there is high demand , they increase the price & sell
But doing regular exchange no much gain but still if it’s bulk they make gain

Let’s say today a dollar is 720 naira , Aboki would buy at 710 or 700 from any random person willing to Sell ; depends on negotiation and sell at 720 to someone who needs it . So the 10 naira or 20 naira add on is their profit .
They are like middlemen
It’s not like they get dollars directly from bank at bank rates

As some one mentioned earlier, banks only give dollars at bank rates for BTA, PTA, Form A & M .

Don't ever deal with this useless guy. He's a scammer. Run.

Black market rate over CBN rate anytime anyday
Since this corntry is a shitty place anyway