bunbam:

Banks should not sell dollars
Banks should not sell dollars, what they should do is to increase the limit on naira card for international trades simple.. Why should banks sell dollars when we don't spend dollar im Nigeria?

For instance there are some international payments you want to settle.

Let me talk of my personal experiences which I'm aware some others are in the same scenario.

For some of us who do pay ads let say on Facebook, before Buhari and to his early days, you can do payment directly from your naira accounts.

For instance when you want to pay Facebook 50 dollars, you can pay naira equivalent at official rate directly from your naira accounts with GTB and some others banks.

Now, Buhari changed that, so you can't pay again via naira accounts and it was required that you open Domiciliary account, you can see that rubbish.

So, if you want to continue using the avenue, you have to open Domiciliary account. It didn't end there, get to bank that you want to buy dollars to fund your Domiciliary account, they will not sell despite the fact that they openly display buying and selling rates across their branches.

So, you have to go to Abokis on the street in order to buy dollars at higher rate for you to be able to fund your Domiciliary account.

Such also add to the already tense scenario of looking for foreign currencies here and there.

So many people are in that category which simple reversation of such will reduce the pressure.

Meanwhile, people that are receiving foreign currencies from abroad don't sell to banks as well, they will just make withdrawal and go straight to Abokis to sell at higher rates above official rate.

You can see all these issues, so the policy of paying Naira equivalent at the official exchange rate is a good idea, you don't have choice than to collect your money in naira equivalent.

So, if I need to buy dollars as well, bank should sell to me at official rate, I don't need to go to Abokis to buy at higher rate.

Such selling to me, they don't need to even release the foreign currency to me, they should just debit my Naira balance and credit equivalent rate to my domiciliary account.

Or better still, they just allow us like we used to do payments directly from our Naira account at the official exchange rate.

They will learn the hard way, the country is heading towards the direction of Zimbabwe .


quote author=Namaster post=128362426]Tinubu and Cardoso have made another HUGE mistake.

Fools are tightening the noose around banks receiving Forex inflow when there are LITERALLY tons of other ways to receive your money.

No one will use banks to receive money with their nonsense exchange rates when there are better options out there.

Cardoso is a prime example of an extremely inspired idiot.

Imagine creating more hurdles for receiving Forex when the country is already groaning about NOT receiving any Forex in the first place.

That's like pouring MORE water on a drowning man.

Tinubu has no idea what to do with Nigeria. He's too proud and too nepotistic to get people who can help him out of the mess he's created.

[/quote]

Just4000:
They are really making a huge mistake, thinking they are solving the issue at hand.

What they are unintentionally doing is creating artificial scarcity for dollars within the country which will boomerang in no distant time.
Because, dollars in cash will not be available to those who needs it for their business and other activities. People must need dollars and other foreign currencies in cash for their business and travels.

Nigeria being practically impatient in nature may not be able to wait and follow the long process of obtaining BTA or PTA for their travels and even when they do, it is usually hardly enough for the purpose it intended for, so they normally resort to black market dealers. Of cause they need to make that journey,or do that business which require dollars in cash.

Now, here is the twist; CBN has prevented banks from giving out cash in foreign currencies, our bureau de change will lack cash to give out and people will definitely keep demanding for cash, so those who hoard dollars will start bringing them out to sell at exorbitant prices, so don't be surprised when you hear that dollar hits 2,000 naira or more for one dollar.( Just like when Nigeria had cash crunch then). When this starts happening, some bank managers looking to profit from this, will start giving out dollars to these black market dealers through the back door, at high prices thereby further gradually depleting the dollar within the bank(we all saw this happen in during the cashless policy period) that was intended to use to cushion the effect, and also keeping more cash in circulation for longer than expected. We know Nigerians corrupt nature, once people start benefiting from that they don't care who suffers, they keep doing it, and you will come to find out that someone in government is involved making it difficult to police.

What this government need, is competent hands. If they will let go of their ego and nepotism in appointment, it will go a long way. Look for someone like Ngozi Okonjo, or people that really understands how this economy works It will go a long way. Even if it takes inviting opposition to a round table and discuss how to move this our country foreword it will go a long way in salvaging the situation. Ngozi was used by Obasanjo and when Jonathan saw that she's an asset, He invited her over and she helped the economy during His tenure. This woman is non partisan and is always willing to help when called upon. There are others like her if only Tinubu is willing to spread His tentacles beyond party lines. The part has failed and continue to fail. He should work outside the party sphare and get results.

I beg to disagree. Okonjo doesn’t have any magic wand here.
Obasanjo and Jonathan were lucky because oil was selling well and they were able to use the dollars made to defend Naira against the USD.
If Obasanjo or Jonathan were to remove subsidy during their tenures, they would have also faced what we are facing now. It was this outcome they we’re running n away from that didn’t make them remove subsidy.
I maintain: Okonjo or nobody else has the Magis wand to turn things around in this situation. It’s a collective efforts that we need and people should hands off c.Orruption.

If a country is not c0rrupt, ordinary NCE graduate can lead Nigeria.

No be comedian like AY, Bovi dem dey lead Ukraine? And he is still leading them in war against Russian, with the help of the western world.

Can Bovi lead a communal class against a local community in his state, let alone leading a state economy or a country? Don’t get me wrong. I do not say Bovi is not knowledgeable on his own area o.

jmoore:
Can't the government be sued for this?
Person send dollar, you are forcefully converting it to naira at your own rate, not the rate of the receiver.

Legal robbery!

The clueless people that brought this idea will end up pushing many people to other platforms that can't be captured officially.

They can't sue the government, cbn is vested with the power of regulating our money and economy

nairalanda1:



We don't have a good enough economy, and this government is responsible in a large part for it.

Simple and short.

If you don't accept that, sorry.

Corruption is the key.

Let me give you an example

Buhari started Anchor Borrowers program to enable us achieve food sufficiency especially for rice and if possible export. Is that not what you want?

Almost 2trn was spent on it with nothing to show.
That exactly is the reason why we are still having this shortfall in our balance of payments y'all are harping about. Yet you're excusing corruption saying it does not matter.

Let us look at the $3bn you claim wouldn't make a difference. Just imagine that $36bn is available to be used to develop manufacturing as you want. Do you know the effect that will have on dollar income in a few years if spent judiciously?

There is no productive economy that will excuse waste or corruption. Corruption itself will never let anything be profitable.

So you can make empty postulation about making more dollars till tomorrow. As long as some people are benefitting from the rot, the dollar issue will never end.

VanuatuWycombe:


I am not in Nigeria, either but I want the best for Nigeria.

All would come down later.

People should protest to governors’ offices and ask Accountant Generals and Auditor Generals, Commissioner for Finance, Commissioner for Works, SSG, Directors at Ministries, All members of Houses of Assemblies.
They are the arrowheads of how people’s money are stolen in states.

You can’t say the way we are running our states in Nigeria is the way they are running states or provinces in the country where you are.

Ordinary policy that could affect LGBQT community or dog owners, you and I know how they come out to protest abroad.
Why can’t we protest against our own government too?

Stop deceiving yourself abeg
Do they protest against accountant General and auditor general or commissioners in the country you're in?
You're going to leave the President who controls the agencies that are in charge of inflation and naira value and protest against appointees who have nothing to do with such things.
If protest is held against the president, others will sit up!

jmoore:
Can't the government be sued for this?
Person send dollar, you are forcefully converting it to naira at your own rate, not the rate of the receiver.

Legal robbery!

The clueless people that brought this idea will end up pushing many people to other platforms that can't be captured officially.

No. Your recipient recieved the same rate as the abokis.

Kukutenla:

Stop deceiving yourself abeg
Do they protest against accountant General and auditor general or commissioners in the country you're in?
You're going to leave the President who controls the agencies that are in charge of inflation and naira value and protest against appointees who have nothing to do with such things.
If protest is held against the president, others will sit up!

Go home and lead the protest against the president because your candidate didn’t become the president.
Your state governor don stea1 your state bend like Abendnigo, you nor protest.

Do you know what is called concurrent list? Check the list and see what your state governor has failed to do for you but which you are expecting federal government to do for you.

Schifo:

They will learn the hard way, the country is heading towards the direction of Zimbabwe .

NIgeria is not heading the way of Zimbabwe

Zimbabwe is in the crisis it is in now, because in the year 2000, and after, Mugabe destroyed white farms, and handed them over to black farmers because he was losing support, and he urgently needed support.

The problem was the white farms were at the time a main source of income , particularly forex, for the black majority. Result, low forex, zero forex savings, value of local currency spirals down the hatch.

If Nigeria wanted to be like ZImbabwe, we would do that by chasing away all the experts from the oil industry, all the foreign companies...and hand them over to 'people's commitees' to run by themselves. Result, loss of forex and loss of investment, naira falls down to the bottom.

While we are not like Zim, we are in danger of being like zim , as are most African countries, because at the end of the day, most African countries rely on just one source of income for everything...and most of the time we don't control the prices of our source of income. Zim got it bad because they literally wrecked their source of income. If not for a timely discovery of platinum over ten years ago, they would have been in even deeper mess.

Elliotwaveforec:

Dey play! You think the government doesn't have power over cryptos? All the crypto exchanges will soon be banned and you won't be able to access them online.

All the Abokis offline will soon be sent to jail for holding dollars in a country that has her own currency.

We're moving! We can't have two currencies in one country.

Naira is our currency and must be spent by all.

Na today... Waitin buhari achieve. P2p no dey? You can't control the economy artificially. If they want a working system, they should start from themselves. They won't be stashing dollars in agwada and be telling me to use naira. Thunder is just patient these days, I for say make thunder fire all of them.

Hopium:


Usdt rate, bank rate, and black market rate are almost the same. Rest. Lol

They did not float shishi... Bank will pay you 800 when your dollar arrives, your eye go clear.

pocom16:


Lol...

You probably don't use a dom account..

Go to any top banks and ask to withdraw your dollars.. they will give it to you in cash unless they don't have any in-stock..

It is only when you provide a naira account to someone and foreign currency was sent to it then the bank will make a conversation and pay you in naira

I don't have to explain myself to you it obvious u don't understand my initial questions

Can u explain dis to me?

I thought if dollars was sent to you from abroad, u will get it in naira here. Am i the one confusing myself?

Beautifulday:


You are not getting anywhere. You will see as it will back fire. People will stop sending dollar home. They will do the exchange from there.

nairalanda1:




NIgeria is a broke country.

RIght now, we should be earining in the hundreds of billions of dollars from a strong diversifed economy. Years of bad economic polices, especially since 2015, are why we are strugling for limited cash.

There is a reason why we should have not voted for APC In 2015. And even last year...but anger towards PDP, tribalisim, and bitterness kept us with a bad government.

Oga, we are broke. The stealing and corruption is making the problem worse. Our bad leaders who won't promote investor friendly policies, and pro-export of other things apart from oil are making us broke. If we were serious, our earnings should be in the regifon of 200 billion dollars per annum. Not the scanty 70 billion, 20 billion from remittances, which are mostly eaten up by debt.

Speaking of debt...did you know our debt was eating up over 90% of our revenue as at AUgust 2022.? AUGUST 2022. If not for the partial subsidy removal forced on TInubu as well as the partial float of the naira, it would have been 130 % by now.

Oga, APC Is useless. The problem is how we agree on how they are useless.

Let us fight corruption, let us stop the corrupt. You won't get any argument from me there....but it ultimately does not solve our problem.

Forget parties here, oga tell me when last did you hear the total revenue Nigeria earned, since them born you have you ever heard what is our daily oil production?
Are our crude being stolen or not and by who?
If you think the government and IMF can fool me and deceive me into believing Nigeria is broke I sorry for you
Ogbeni Nigeria is broke how long have we been hearing these stories, we are broke yet what is stolen every year is outrageous
Abeg find something talk jare

vanitybutiwanti:
you're an illiterate, genuine importers go to the banks for dollars and they are not denied. Its always the broke assess with poor education that come online to type trash, when you said money to the US or the UK, does the recipient get naira?

Did you proof read the rubbish you typed here before posting? You gave yourself out by typing this rubbish.You are stupid and illiterate the same time if not you should have gone through this nonsense before posting. Yeah, genuine importers go to the bank for dollars when the same banks haven’t been able to meet the same importers demand for dollars the reason we have BDC’s for easy access. Tinubu dog that will die of hunger yet keep supporting nonsense.

Beautifulday:


There are many ways to do it. Nigerians like more money. Since they cannot have their dollar either in bank or in cash, why would they send dollar?
They will get someone who will send naira and collect dollar. Dollar remain in dollar economy and naira remain in naira economy.
If you don't know, europe discourge nigerians send foreign exchange home.

You actually don't know the meaning of the bolded. I know you also don't understand the policy and basic economics so you write whatever you think. The bolded is not possible but that's every government's wish.

ITbomb:

Bank FX rates and BDC are almost the same now, so it won't matter much.

My only issue is that they should leave dom account for people who wishes to transact internationally (send out)

The option is still there. Your foreign currency will remain in your bank account as long as you want. You can make transfers & purchases but for the most part can't collect foreign currency it over the counter.

Mavor:
Nigeria will have a serious FX inflow problem. No one will use banks with their rubbish FX rate. Crypto all the way!

Nothing will change in FX inflow. Crypto has it risks and now there's no difference. The business man sending 100K USD to Nigeria will 100% prefer to use the banks than crypto.

ifinger:
Does it mean one can now withdraw naira equivalent from a domiciliary account in Nigeria?

You can withdraw NGN equivalent but can't withdraw USD over the counter.

Hotice085:


Forget parties here, oga tell me when last did you hear the total revenue Nigeria earned, since them born you have you ever heard what is our daily oil production?
Are our crude being stolen or not and by who?
If you think the government and IMF can fool me and deceive me into believing Nigeria is broke I sorry for you
Ogbeni Nigeria is broke how long have we been hearing these stories, we are broke yet what is stolen every year is outrageous
Abeg find something talk jare

You are right, but the problems are larger than all you have mentioned here.

We got lots of natural resources, the thing we should have been doing is using the natural resources to make things the world needs, and earning huge profits from it.

But we stuck with oil, we refused to fight corruption, and we paid for subsides with borrowed money, and then some imaginary money.

Recipie for disaster.

IMF wants us to do well by the way, so that they do not have to give us any more money, lol.

nairalanda1:


You are right, but the problems are larger than all you have mentioned here.

We got lots of natural resources, the thing we should have been doing is using the natural resources to make things the world needs, and earning huge profits from it.

But we stuck with oil, we refused to fight corruption, and we paid for subsides with borrowed money, and then some imaginary money.

Recipie for disaster.

IMF wants us to do well by the way, so that they do not have to give us any more money, lol.

Thank God we are stuck in oil becos had we taken this criminal demonic spirit of ours into other sectors of the economy Nigeria would have truly gone bankrupt
So it is better we correct ourselves with the oil management before going into our resources and sectors

If we can manage our oil, together with Remittance, non-Russian oil export, entertainment and Music I bet you we won't be here
Then imagine managing our gold, solid minerals and others we will be the richest on planet earth
Why do you think every government never fights the government he takes over from? It is because among the elites their is abundance of money to be made in Nigeria, why should they fight when they can make their own money too

mycar:
How then will BDC get inflow?

Inquiry minds would like to know the answer to this question. Ordinary citizens can't walk into a bank and purchase Forex. so what the options will be available?

ivolt:
May be counterproductive in the long run unless the official and parallel rates
is unified.

How about allowing the BDC to participate in the Open Forex Exchange just like the banks. ?

tolue42:


Ogbeni shut up. Government could force those platform exchanging higher rate to register under it's regulations or get delisted from our country. When you send Naira to the US , do you get Naira there or USD? Mumu talk here and there.

Looking at the policy through the emboldened one I can infer that it is a good policy.

The government should come up with series of policies targeted at reducing the influence of the dollar within our domestic economy. Also they must shore up industrial production that will enhance exports so we can earn more dollars at the international stage.

Dminister:



Did you proof read the rubbish you typed here before posting? You gave yourself out by typing this rubbish.You are stupid and illiterate the same time if not you should have gone through this nonsense before posting. Yeah, genuine importers go to the bank for dollars when the same banks haven’t been able to meet the same importers demand for dollars the reason we have BDC’s for easy access. Tinubu dog that will die of hunger yet keep supporting nonsense.

it's your father that will die of hunger, I did not vote in the last election. Miscreants like you want the country to sink and burn because your preferred candidate did not win. You can hit your head on the wall or commit suicide, your candidate won't win in 2027

Hopium:


Lol. Gibberish.

These are part of the reason the CBN said we've dollarized our economy. And how does that stop anyone from earning in dollar. Earn your dollar whereever you want but you are getting the naira equivalent in Nigeria: that's what the CBN is saying.

You lots are irredeemably sick. You've castigated the government for the bad naira strenght. This is one of the way naira is going to gain back purchasing power and you still dey complain. Dem swear for una?!

You all want to earn in dollar, keep money in dollar, there are even hookup girls in Abuja and Lagos who insist on getting paid in dollar - are we in the USA. Even out banks keep ridiculous amount of dollars. Where do you expect naira strength to come from?

Una never see anything.

Well said

004gist:


CBN don't print dollars. Cbn don't have the capacity to receive funds on behalf if customers. The commercial banks has that capacity.

CBN don't print but they are custodian.
If you send fund to your friend in Nigeria using a Van Bank plc, how will he get the fund?
Do you think Van Bank will go to the US to get the dollar? Or it will be window shopping on the Nigerian street seeking for dollar?
CBN gives banks the dollars.
As govt banker, they keep the naira and Kobo, FX note and gold reserves unbehalf of the Federation

mycar:
How then will BDC get inflow?

I thought BDC said they don't accept inflow

femicyrus:
Nigerians should be able to buy and sell internationally with naira through the Banks.
Imagine buying an item on AliExpress with your Naira account with your bank app.

Na to buy some bullet train and bring it ...infact I go buy the whole China infrastructures and bring it to nigeria

femicyrus:

What do you want to buy in dollars in Nigeria?
Yam, agbado or cassava?
Or you want to sell the dollar at a higher rate to BDC while the naira suffers

A lot of people here have no business with the dollar other than what you just stated....to sell at higher rate to BDCs..while the naira suffers as a result of it

mycar:
How then will BDC get inflow?

Must there be any BDC ? Was there a BDC before Babangida regime ? Was it not Babangida that regularised and scaled up the small and insignificant forex black market, mostly in pound sterling then, officially recognising them and giving them licensee to operate. Before then it was illegally done. After introducing SAP and a double-window foreign exchange regime for the first time in Nigeria in 1989, Babangida did this to put a mechanism in place to facilitate foreign exchange round-tripping by him, top army brass and the rich in the North. So of what use is it ?! Except to fraudulently enrich the BDC operators at the expense of other Nigerians.

Macphenson:


We need dollars for importation since we are producing little or nothing and as long as dollar keep rising in this country because of its scarcity, goods and services will always be on the rise.

The dollars we are to use for importation and other viable economic activities have been bought up with looted funds from politicians and civil servants thus rendering our naira worthless.

We don't actually need large volumes of dollars for importation as you say , the vast majority of dollars and FX in Nigeria is used for consumption. Nigerians don't seem to want to bite the bullet.

We are not in a position to keep importing goods, all these so called entrepreneurs and CEOs but they are all lazy.

These same idiots keep accusing Dangote of monopoly yet no one of them is risking their wealth and betting on the country

Namaster:
Tinubu and Cardoso have made another HUGE mistake.

Fools are tightening the noose around banks receiving Forex inflow when there are LITERALLY tons of other ways to receive your money.

No one will use banks to receive money with their nonsense exchange rates when there are better options out there.

Cardoso is a prime example of an extremely inspired idiot.

Imagine creating more hurdles for receiving Forex when the country is already groaning about NOT receiving any Forex in the first place.

That's like pouring MORE water on a drowning man.

Tinubu has no idea what to do with Nigeria. He's too proud and too nepotistic to get people who can help him out of the mess he's created.

I disagree.

In most countries, money sent are converted to local currencies because local currencies are means of exchange. You really want to strengthen that belief or your currency weakens further.

If I send my US dollars to Nigeria, the medium converting the exchange would demand more Naira, hence reducing supply of Naira and increasing its demand.

Say if I send dollars and my relative receives dollars in Nigeria, Naira weakens further. Also, it could weaken so much that it becomes the unofficial means of exchange, which u never want.

Under this new system, most remitting companies across the world would start demanding for more Naira, because they need it to actualise exchange rates.

The are other measures the CBN has taken such as increasing interest rate, telling banks not to hoard dollars, because hoarding it causes artificial dollar scarcity, making Naira struggle.

You don’t have to import billions of dollars to Nigeria for Naira to appreciate in terms of remittances.

Remittances is like export, and you want to price your exports at your local currency, because u want people to demand more of your local currency for it to gain value.

Anytime u need dollars, you can always convert your local currency to dollars. Any market across the world would always give u Dollars for your Naira if they truly believe in its worth. Its worth gets strengthened if banks across the world are demanding it either due to remittances pressures or through exports of Nigerian made goods and services.

The only reason I could see as to why Nigerians might want to keep Dollars is because they don’t have faith in the future of Nigerian economy.

vanitybutiwanti:
it's your father that will die of hunger, I did not vote in the last election. Miscreants like you want the country to sink and burn because your preferred candidate did not win. You can hit your head on the wall or commit suicide, your candidate won't win in 2027

I am not the cause of your frustration. You probably inherited poverty from your poor father the reason for the frustration. Your father must be living a better poverty life than you. Your father shouldn’t have brought you to this world if there was government policy restricting poor people like your father from giving birth to miserable and poverty stricken children you won’t be here casting your frustrations on who was not there when your father was implanting his miserable sperms inside your miserable mother to birth you.

I know very well back then a gold circle condom was ordinary 25 naira yet your poor father couldn’t afford it to prevent bringing you into this world.

Dminister:


I am not the cause of your frustration. You probably inherited poverty from your poor father the reason for the frustration. Your father must be living a better poverty life than you. Your father shouldn’t have brought you to this world if there was government policy restricting poor people like your father from giving birth to miserable and poverty stricken children you won’t be here casting your frustrations on who was not there when your father was implanting his miserable sperms inside your miserable mother to birth you.

I know very well back then a gold circle condom was ordinary 25 naira yet your poor father couldn’t afford it to prevent bringing you into this world.

Between me and you who is frustrated? You that came to mention to write shiit or me? You're about to die of hunger because of your poverty and frustration so much so that you blame Tinubu for your misfortune, will Tinubu put food on your table? Don't you have a job or a skill you earn from? You don't know the implications of the government policies, whenever they enact a good policy, just like zombies, you and your frustrated father with little to no understanding about the matter on ground jump out to hurl invective, is naira spent in the US? Why should dollars be spent in Nigeria illiterate? Get lost, get a life and get a job, no messiah is coming to save from your misfortune and poverty