yinkus6750:

We really need to reduce the demand for foreign exchange.

That is not a feasible solution on various levels.
Look, as long as trade exists, the demand for FX is a normal thing. Afterall, the USD is the global trade currency. So a healthy FX circulation is a KPI for functioning foreign trade mechanisms in the country.

All countries in the world, trade internationally with the USD... (except for BRICS nations who are now lobbying for dedollarization-but still covertly use the USD).

However what needs to change, are the policies which make the banking sector limit FX transactions to normal people and reserve FX supply for specific entities/profiles, doing that indirectly strengthens the black market, as the regular demand for FX by these normal business people tilts towards the black market, since it is readily available there, thus creating a stronger parallel FX market.

It's Hightime CBN regularise BDC's as authorised financial syndicates and make policies that encourage equal operations between the BDC'S and the banking sector... doing so will create a uniform FX Market.

Given that uniformity, the import/export sector trade rates, would automatically align with the uniform FX market. Balancing the national currency value as there would be no need for an FX parallel market.


But will the crooks in government allow it? No!

FYI the CBN, is one of the most shady entities in Nigeria. (The currency swap before the elections was indeed an eye opener to just how shady CBN is)

One of the reasons inflation is at an all time high in Nigeria, is due to the fact CBN has printed excess Naira and pumped that excess into circulation, this has all contributed to rising inflation levels and CBN are not transparent about all these, but yet CBN is out there chasing BDC's...

If only you know what importers/exporters go through when sourcing for FX from banks, then you would appreciate BDC'S. These BDC's have evolved to fit the financial Ecosystem they are part of... so hardlining on them would only create another black market within the black market. Because then again, these BDC'S also collude with banks to artificially regulate FX supply, so as to make CBN have a valid reason to print and pump more Naira into circulation, as an excuse to stabilize FX demand from the black market, these are all bad habits that were taught to these BDC'S by the banking sector...

I could write a full article on the role of CBN in corrupting BDC'S but ...


Nawnsense.

The fact is basic Economic theories have also started shouting "Emi'lokan!"

OP whats your source. Propaganda at its peak

The government is playing a fast one on Nigerians.
CBN doesn't have cash to intervene in the BDC sub sector to increase liquidity.
Look closely at the timing.

NLC protest = Monday - Tuesday
MPC meeting = Monday - Tuesday
BDC funding = Monday- Tuesday

Only circular from CBN is the proposed recapitalization of BDC's into tier 1 (N2 billion)and tier 2 (N500 million)

How much is a Microfinance bank license that a aboki will go and keep 50m as cautionary fee for tier 2 BDC and 200m for tier 1 with CBN?

The propaganda is geared towards taming the escalating price of forex in the different markets.

tonicyril:
the problem with Nigeria is people of Nigeria..

U shout that Nigeria should be reformed and coordinated like the rest countries, ok fine.

Now cbn told bdc what to do to benefit us, u re asking if they would do it, and if they fail to comply and FG is giving them problems u re the first to jump on their defense by saying they should be left alone

A lot of Nigerians like the boy you quoted are hypocrites

yinkus6750:
The BDCs knows how to go round all this policies
We really need to reduce the demand for foreign exchange.

Bless you. All these are just rules that will be broken. There are even Aboki FX dealers that have accounts in UK, US and Canada. You pay them niara in Nigeria and they transfer the FX to an account of your choice abroad.
You can't use rules and regulations to control a nations currency, all that will do is drive the black market even more. The only way to is to REDUCE demand for Fx. This can only be done by sorting out security and infrastructure so local manufacturing and processing can thrive, as well as cutting down on oil leakages

Namaster:
Of course, this does NOT apply to politicians and the canals that control them.

The nonsense is for only average man, can't apply to their fellow crooks.

Namaster:
Of course, this does NOT apply to politicians and the canals that control them.

that's the problem,thy will still bypass it.

Namaster:
Of course, this does NOT apply to politicians and the canals that control them.

Nope. Only applies to hardworking Nigerians making their honesty incomes

Na poor man regulation be this wetin concern rich men dem

Namaster:
Of course, this does NOT apply to politicians and the canals that control them.

Politicians are human like you.

Go and fix up your life,

It's not the job of politicians to better your life,

Politicians elected into government are made to tax you and regulate your business.

Go get a business for yourself and get taxed and regulated.


No be government get Microsoft, Google.

Why looking for solution in sokoto when the solution is in your chokoto? Simply ban dollars domestically and internationally. Period.

bjdon:

Bless you. All these are just rules that will be broken. There are even Aboki FX dealers that have accounts in UK, US and Canada. You pay them niara in Nigeria and they transfer the FX to an account of your choice abroad.
You can't use rules and regulations to control a nations currency, all that will do is drive the black market even more. The only way to is to REDUCE demand for Fx. This can only be done by sorting out security and infrastructure so local manufacturing and processing can thrive, as well as cutting down on oil leakages

Best comment so far. The only solution is produce what you use. Reduce your need for foreign products. All these frantic moves are trial and error.

skj1377:
The black market will surface again. Reason is 90% of request are not legitimate. So black market rate will be any dollars sources outside official CBN sources . The huge limitation of the dollars in this window will result in a value above N3000 per $. In other words harmonization of Forex window will never be achieved in Nigeria irrespective of value of Naira.

This is what I foresee too. If CBN is strict with this latest regulation, unofficial BDC network will evolve to meet the excess legitimate needs, and other personal/non-official needs, which, of course, are much more in number and value. These unofficial players will then begin to dictate the price eventually.

Tap0lane:
Are you all Igbos or why are you wailing over news to reduce Nigeria dependency on a foreign currency ?!

Is something wrong with you, mad tribal bigots, when has it become a crime to ask a question?

And what is your problem with the ibos?

tonicyril:
the problem with Nigeria is people of Nigeria..

U shout that Nigeria should be reformed and coordinated like the rest countries, ok fine.

Now cbn told bdc what to do to benefit us, u re asking if they would do it, and if they fail to comply and FG is giving them problems u re the first to jump on their defense by saying they should be left alone

Mumu Mallam for road side will do all that stated by CBN or na floater dey your brain, just as dull as CBN handlers

Chicagograduate:
Instead of placing a ban on seeking foreign medical and education.That is why dollar is scarce.

How does foreign education cause a scarcity of dollars? Do you know how many students have use education as japa route? And how much they send back home when they are able to establish themselves there?

Clowns 🤡


... And who's going to be overseing the transactions?

Its not bad. But politicians can get as much dollars that they needed. Imagine last election the way dollars were flying around.

Import food

Imagine ban on okirika, dokumbo cars and fairy used phones.

Pls open borders for food. Bandits cant allow farmers to farm

Igahbarr:
Why looking for solution in sokoto when the solution is in your chokoto? Simply ban dollars domestically and internationally. Period.

Simple solution but the likes of dangote and ganduje$ will be reduced to portable zazuu level

Newton1045:
Import food

Imagine ban on okirika, dokumbo cars and fairy used phones.

Pls open borders for food. Bandits cant allow farmers to farm

Import food and pay with naira? @what rate? And how much will you then sell?
You as a ghanian or togolese.... Will you accept naira?

People buying bulk will then start paying more which will in turn have a positive effect on the dollars

yinkus6750:
The BDCs knows how to go round all this policies
We really need to reduce the demand for foreign exchange.

Ban the use of dollar in Nigeria.

Americans don't use naira in their country

How do they intend to monitor and implement this

Newton1045:


Ban the use of dollar in Nigeria.

Americans don't use naira in their country

Some may argue that naira is useless. But they don’t even use pounds and Euro

Won't this further push the scarcity of the dollar? These requirements aren't easy to meet

Tap0lane:
Are you all Igbos or why are you wailing over news to reduce Nigeria dependency on a foreign currency ?!

Wailing I think you should be highly introspective before quoting comments on NL

tonicyril:
the problem with Nigeria is people of Nigeria..

U shout that Nigeria should be reformed and coordinated like the rest countries, ok fine.

Now cbn told bdc what to do to benefit us, u re asking if they would do it, and if they fail to comply and FG is giving them problems u re the first to jump on their defense by saying they should be left alone

I tire for them my brother

Just look at the comments from his likes and you will wonder what exactly they want? If government no do they wail
Government take steps they cry
To them nothing Must work...and they will turn around and wonder why nothing is working

omoadeleye:




Politicians are human like you.

Go and fix up your life,

It's not the job of politicians to better your life,

Politicians elected into government are made to tax you and regulate your business.

Go get a business for yourself and get taxed and regulated.


No be government get Microsoft, Google.

OmoadeDUMBO.

COMPAQ:

Cant those be easily faked? Who will verify it at point of sale

So the school and hospital account details can be faked too or you missed that part where it was stated that money will be paid directly into the institution account abroad.

There’s no government policy you people won’t criticize, no matter how good it is.

fergie001:


SOURCE

cbn stop selling to bdc. Stop, they would mop up the dollars with artificial school fees and bta demand.

Oluwademilade:


So the school and hospital account details can be faked too or you missed that part where it was stated that money will be paid directly into the institution account abroad.

There’s no government policy you people won’t criticize, no matter how good it is.

yes it can. Allen oyema did it and usa seized his money. Thats what they do. Fake account details. Fake school details and launder the money.

tonicyril:
Did u read the part where ur documents for the purchase will be presented??

lol. They would go round this bro. Unless the documents would pass through deloitte or kpmg which is more money for cbn.