What they should've done long time before sad though for SMEs that can't fulfill the banks' requirements

Kwanza:

https://www.thecable.ng/breaking-cbn-stops-sale-of-fx-to-bdcs/amp

KazikageSama:


Naira will actually suffer for this move Sir.
1. Our banks are not capable of handling the volumes of daily FX exchanges over the counter yet. From experience, I can assure you that banks are still struggling with handling, reporting and managing Form As, Form Ms, BTA and PTA requests.
2. All countries have BDC (ALL), what most of them have just done is put the strategic managements under financial institutions. If would have been better if there is a roadmap to allow banks take over these BDCs first before this outright ban.
3. With the CBN's $100 FX limit on cards, expect people to hoard their dollars more which will put more strain on naira.
4. BDCs today are the number 1 agents of controlling (mobbing up and selling dollar into the economy), with most items off out Form M list, these guys are provide the dollars that most businesses use to import their foreign materials.

Emefiele for me has been the most questionable CBN Gov., his policies are questionable and his way of reasoning quite archaic. I'm certain he has some funny reasons behind this but I'm not sure it was well thought through.

I won't be surprised if we have to devaluate further to meet impending FX needs within the next couple of months.

I may be wrong and I pray I am

If only they didn't ban crypto, they could have used stable coins like BUSD & USDC as an alternative, cause those coins are same as normal dollar, which am sure it could be easily accepted by a lot of business people & those who just want to save. But dats no longer possible now

It will encourage round tripping and provide funds to the BDCs ...infact the BDCs would sponsor round tripping so they can continue their business in black market

abhosts:
So why not sell directly to banks so that customers can have a higher dollar spending limit of their Naira Cards?

ttmax09:
Have you ever needed dollars for PTA or BTA? Then you will know the banks are also theives and part of the problem. They will never sell to you like the CBN mandated them unless you are well connected though.

My first attempt at buying dollars to fund a dom account for travel I was shocked at the loops I had to jump through. When I got tired of jumping up and down I jeje waka go front of the bank buy from aboki and returned to pay it in to the same guy that had me jumping loops.

I gave up on naija that day

frowland:


I made reference to the purchasing power of money which you uploaded. Its basic economics.
You compared $100 to #50,000 and I told you to compare the purchasing power of what you posted instead.
Now that you want to delve into unit, sorry economics does not recognize units in trans currency comparisons. If it did, then all Nigeria need to do is to revalue by removing zeros and we are good as 100# = 100$ (Case study GHANA, case study2 IRAN).
But the question will still linger, WHAT WILL THAT $100 buy compared to the new revalued #100? If you still don’t get it, then I cannot help.

I see your point but let's take it a step further.


How many people earn 100 dollars a month vs how many people earn 50k naira a month. That's That's comparable measure too.

Ok

Is it advisable to buy dollar now? Since the price is most likely gonna go up

Pls I have a question. I just opened a dom last week to save some money. I got the account number today. Then I see this post. Should I go ahead and deposit into this account? Will I have access to my money when I want to?
Somebody should explain to me pls.

ygowon:
Confused leaders

I always have issues with people that type rubbish because they have data. Do you know the effect of this policy? How is this going to improve the naira?
Sometimes think with your brain, it is not that difficult.

armadeo:


My first attempt at buying dollars to fund a dom account for travel I was shocked at the loops I had to jump through. When I got tired of jumping up and down I jeje waka go front of the bank buy from aboki and returned to pay it in to the same guy that had me jumping loops.

I gave up on naija that day

Well atleast you bought dollars @ bdc rate from aboki bah? Well last year ending I bought from within the bank @ black market rate for PTA purpose, something that was supposed to be sold @ official rate after presenting all the necessary documents.

Once again throwing out the baby and bath water.

armadeo:



I see your point but let's take it a step further.


How many people earn 100 dollars a month vs how many people earn 50k naira a month. That's That's comparable measure too.

Yes that is another subject matter of its own. I was more concerned on what that amount will get you in US and Nigeria respectively.
How long will it take a US citizen to earn $100 and how long it will take same random Nigerian to earn #50,000.
In other words, exchange rate is not the basis to measure a countries economic indices BUT per Capita.
So we should stop brandishing $100 ~ 50,000.
What is $100 to Japanese yen? Does that make japan a useless country? NO!

They should even stop exporter from selling dollars to individuals and companies at higher rate and bring the export proceeds in system to compensate for import bill.
Export proceeds sales at 517-520 Naira per dollar is even higher than black market rate.

Watch dollars go to 1000 naira lol. I think this is a very bad policy.

bigtt76:
It will encourage round tripping and provide funds to the BDCs ...infact the BDCs would sponsor round tripping so they can continue their business in black market

Sorry, do you mean roundtripping from bank? Won't it be the same limit for everyone?

frowland:


Yes that is another subject matter of its own. I was more concerned on what that amount will get you in US and Nigeria respectively.
How long will it take a US citizen to earn $100 and how long it will take same random Nigerian to earn #50,000.
In other words, exchange rate is not the basis to measure a countries economic indices BUT per Capita.
So we should stop brandishing $100 ~ 50,000.
What is $100 to Japanese yen? Does that make japan a useless country? NO!

Tou need to understand that the principles tou are trying to explain are not easily grasped to the untrained eye. All we can see is the value of 1 dollar to naira.

I also googled gdp per capita of countries ( USA and Nigeria) and the gap is also ridiculous even worse than the exchange rate. I still don't understand it though

Some own BDCs including the CBN Governor sef. Don't believe what the govt says ooo

Tobinrobin:
They will soon reverse the decision. A large percentage of BDCs are Northerners. This kind of decision don’t last against them lol.

The policy is like a man stepping on his shoe lace and blames his shoe for making him fall.

The right policies will encourage exports also FDIs will ease pressure on the naira simple as ABC

daddytime:
Hmmm

E be like say this work don tire Emefiele...

His bosses won't be very pleased with this news if indeed true.

Great move.

U must think Emeciele will do this without express approval of the Presidency...dem no born am well. These policies most times, if not all times, are discussed with the d presidency before u announce anything

frowland:


Hello bro, what is the purchasing power of those two currencies at the micro level?
Okay, let me rephrase; Assuming I want to sponsor random people to barb their hair. How many people will #50,000 barb and how many people will $100 barb in the USA?
What can $100 buy you in the US compared to what 50k can do in Nigeria? ..and so forth.
These are the kind of questions that are conspicuously ignored when comparing economies.

What of asking yourself, how easy is it to earn $100 in the USA? Compare it to how easy it is to earn 50k in Nigeria. The Nigerian economy is messed up by incompetence

keep fooling those you can....

Buchika:
What of asking yourself, how easy is it to earn $100 in the USA? Compare it to how easy it is to earn 50k in Nigeria. The Nigerian economy is messed up by incompetence

I think we have shed light of this particular question up top. Thanks.

armadeo:


Tou need to understand that the principles tou are trying to explain are not easily grasped to the untrained eye. All we can see is the value of 1 dollar to naira.

I also googled gdp per capita of countries ( USA and Nigeria) and the gap is also ridiculous even worse than the exchange rate. I still don't understand it though

Lol, I understand. Although I specifically made reference to people using $1 to #50,000 to compare both economies. Its wrong!
Instead, you compare per capita.

KazikageSama:


Naira will actually suffer for this move Sir.
1. Our banks are not capable of handling the volumes of daily FX exchanges over the counter yet. From experience, I can assure you that banks are still struggling with handling, reporting and managing Form As, Form Ms, BTA and PTA requests.
2. All countries have BDC (ALL), what most of them have just done is put the strategic managements under financial institutions. If would have been better if there is a roadmap to allow banks take over these BDCs first before this outright ban.
3. With the CBN's $100 FX limit on cards, expect people to hoard their dollars more which will put more strain on naira.
4. BDCs today are the number 1 agents of controlling (mobbing up and selling dollar into the economy), with most items off out Form M list, these guys are provide the dollars that most businesses use to import their foreign materials.

Emefiele for me has been the most questionable CBN Gov., his policies are questionable and his way of reasoning quite archaic. I'm certain he has some funny reasons behind this but I'm not sure it was well thought through.

I won't be surprised if we have to devaluate further to meet impending FX needs within the next couple of months.

I may be wrong and I pray I am

You said it all bro. Well articulated and on point

frowland:


Lol, I understand. Although I specifically made reference to people using $1 to #50,000 to compare both economies. Its wrong!
Instead, you compare per capita.

The nation is laced with many issues that makes it defy basic economics...

Minimum wage in Nigeria is $60 vs $1200
Cost of living in Nigeria is approximately $300 vs 1000

The easy of scaling your earning is another thing

easyson:


The nation is laced with many issues that makes it defy basic economics...

Minimum wage in Nigeria is $60 vs $1200
Cost of living in Nigeria is approximately $300 vs 1000

The easy of scaling your earning is another thing

Funny @bolded.

KazikageSama:


Naira will actually suffer for this move Sir.
1. Our banks are not capable of handling the volumes of daily FX exchanges over the counter yet. From experience, I can assure you that banks are still struggling with handling, reporting and managing Form As, Form Ms, BTA and PTA requests.
2. All countries have BDC (ALL), what most of them have just done is put the strategic managements under financial institutions. If would have been better if there is a roadmap to allow banks take over these BDCs first before this outright ban.
3. With the CBN's $100 FX limit on cards, expect people to hoard their dollars more which will put more strain on naira.
4. BDCs today are the number 1 agents of controlling (mobbing up and selling dollar into the economy), with most items off out Form M list, these guys are provide the dollars that most businesses use to import their foreign materials.

Emefiele for me has been the most questionable CBN Gov., his policies are questionable and his way of reasoning quite archaic. I'm certain he has some funny reasons behind this but I'm not sure it was well thought through.

I won't be surprised if we have to devaluate further to meet impending FX needs within the next couple of months.

I may be wrong and I pray I am

Emefiele no too disappoint me, he still ranks as the worst CBN boss I know. Shame

frowland:


Lol, I understand. Although I specifically made reference to people using $1 to #50,000 to compare both economies. Its wrong!
Instead, you compare per capita.

I understand too. But on our local level that's what we can easily grasp. As I said I had to check meaning of per capita and gdp to understand you.

That's long talk for many people.

It's all good at least I learnt something

mrvitalis:
This is like the 800th time they would stop and next week they would start again

Lol MBA holders as CBN governor and finance minister n u expect progress

Buhari would handle security osibanjo would handle economy
Now security we no see , economy is worse and some wicked people wants to package osibanjo for us again as president

God forbid!!!

KazikageSama:


Naira will actually suffer for this move Sir.
1. Our banks are not capable of handling the volumes of daily FX exchanges over the counter yet. From experience, I can assure you that banks are still struggling with handling, reporting and managing Form As, Form Ms, BTA and PTA requests.

Hello Sir, sorry to digress. Please I have a question:

What's the present limit on form A payments per semester/quarter as set by CBN. Is it 10k dollar or 15k.

Thank you