Tinubu Bullion van let's break it... Afonja are fraud , everything about them fraud.. Anthony Joshua fraud champ, Awolowo fraud nationalist, Mko fraud nationalist, Femi fani Kayode hungry fraud, even the minions on nairaland, they will push you to war but run away when the war starts... lekki shooting they denied taking part in it, they even blame igbos, fraudulent afonja

lalasticlala:
Amara Nwankpa @Nwankpa_A, the Director of Public Policy Initiatives at Yar'adua:s foundation replies Federal Lawmaker, Ibrahim Obanikoro on his call for CBN to close all Domiciliary Accounts in Nigeria. Recall that Ibrahim Obanikoro, a House of Representatives member, had tweeted:

"I am not the CBN Governor but at this moment, I'm of the opinion that CBN should mandate that all dorm accounts be closed for the next 12 months. Let's see the effect on the Naira. After all you can't go to any of the Western world and open a foreign currency account. Your opinion."

In a reply to Ibrahim Obanikoro's tweet, Amara Nwankpa wrote:


https://threadreaderapp.com/thread/1443191365496606721.html

See previous thread https://www.nairaland.com/6777763/ibrahim-obanikoro-cbn-close-domiciliary

It's a useless suggestion. Rather than save USD in Nigerian banks, people who earn in USD will start saving with PayPal, Payoneer, Binance, and co. At the end of the day, Nigeria loses.

Most nigerians are greedy.. they will go to the bank buy the dollar and then deposit it into their dom account. This put more pressure to the naira. What the cbn should do is to allow withdrawing but ban all local deposit of dollar and only those through moneygram or worldremit should be allow to put into the dom account.

SmartPolician:
The part that no one can go to the Western countries to open a dorm account is FALSE. I know many Europe-based freelancers (they call themselves digital nomads) who own US dollar accounts in their countries.

Closing dorm accounts is like blocking one of the key channels through which Nigerians bring foreign currency into the country and it is not a good decision. Nigeria needs dollars desperately.

...Abeg we need naira more....it is more plenty for polithiefians to carry..

studentofTruth:


It's a useless suggestion. Rather than save USD in Nigerian banks, people who earn in USD will start saving with PayPal, Payoneer, Binance, and co. At the end of the day, Nigeria loses.

...they can change it to naira...it will help naira grow...buying dollar with naira kills naira

bigtt76:
Clout chasers. It would make sense what the law maker is saying if the CBN prevents local funding of the domiciliary accounts from within Nigeria (by cash or electronically). It should be tied to receiving inflows only. The only exception would be for banks tying outflows approved to the account but not lodge it in.

Allowing it to be funded locally is the reason why many hoard forex. Trust me if they do this, rates would drop drastically.

Thank you for this. Domiciliary account should only be allow to fund through world remit, moneygram or any other foreign transfer route.. All local deposit or funding should be ban...

Yoruba proposed, Biafra repudiate the move.

Fulani just dey look. Dem no understand any policy at all.

Awon team backward

Abeg make e take am easy. Obankoros suggestion made sense in a way even though it was too draconian.

Fact remains, a MAJORITY of those piling forex in Dom accounts have NO business owning such in the first place.

Even on the investment thread here you see characters urging people to convert thier naira to dollars. Then we wonder why the rate keeps falling.

Three large economies with foreign currency (aka domiciliary) accounts:

USA: https://www.pnc.com/en/corporate-and-institutional/international-services/multicurrency-accounts.html
Japan: https://www.smbctb.co.jp/en/product/foreigncurrency/
UK: https://www.expat.hsbc.com/multi-currency-accounts/

Not all banks, and not all countries, but there are many places where you can deposit foreign currency. Dom accounts are not our problem - a non-productive natural-resource-exporting economy is the problem.

htdot:
Most nigerians are greedy.. they will go to the bank buy the dollar and then deposit it into their dom account. This put more pressure to the naira. What the cbn should do is to allow withdrawing but ban all local deposit of dollar and only those through moneygram or worldremit should be allow to put into the dom account.

And what happens if I deposit Naira into my account - effectively putting it out of circulation? Am I also greedy? I mean by your logic, the money is locked in my account and should also put pressure on the remaining Naira in circulation. People should be allowed to hold/hoard whatever they find valuable, whether it's real estate, gold, or dollars. It's not people's fault that the government cannot find other ways to earn dollars except by selling oil.

There’s nothing new about receiving foreign currency. But it must be changed to naira immediately on arrival into the country. If you want to deal in dollars, leave the country.
If you want dollars for foreign business, your bank does the conversion at pay point via ur card or at the banking hall, and you are debited in naira.
People that send you dollars send you dollars because you need money. You don’t need dollars. You need money. If you want to save money in dollars, leave the country. Go to where it’s allowed.
As long as people have the option to save money in dollars, the naira will NEVER appreciate.
EVERY currency in the world goes UP AND DOWN against the dollar. ONLY the naira goes UP AND UP. Because when dollars is in excess and its price should go down, ppl collect it, NOT BECAUSE they’re using it, just because they’re saving it- in dom accounts. This is total madness. And should stop. It’s like everybody betting against the naira. It’s a no-brainer. The naira will NEVER appreciate no matter what we export unless dom accounts end.

nextstep:


And what happens if I deposit Naira into my account - effectively putting it out of circulation? Am I also greedy? I mean by your logic, the money is locked in my account and should also put pressure on the remaining Naira in circulation. People should be allowed to hold/hoard whatever they find valuable, whether it's real estate, gold, or dollars. It's not people's fault that the government cannot find other ways to earn dollars except by selling oil.

This is the problem and you are one of them... why buying dollar that you are not using just to hoard? This is selfish and greedy... Buhari is not just the only problem of nigeria.... Do you no the effect of what you are doing and how it impact negatively to the poor masses? How this causes scarcity of dollar ans thereby leading to the price of things skyrocketing? Ppease also care about your neighbour and not just yourself.

nextstep:


And what happens if I deposit Naira into my account - effectively putting it out of circulation? Am I also greedy? I mean by your logic, the money is locked in my account and should also put pressure on the remaining Naira in circulation. People should be allowed to hold/hoard whatever they find valuable, whether it's real estate, gold, or dollars. It's not people's fault that the government cannot find other ways to earn dollars except by selling oil.

What you are saying is just like you’re in an official function, and they’re singing Nigerian anthem, but you say you have the right to sing the American national anthem, and you start singing it. It’s madness. Just like you’re in Nigerian army and when you go to war against the U.S. soldiers, you turn round and start shooting your fellow Nigerian soldiers. You must understand that currencies are virtually at war with each other. Having the option for Nigerians to save in dollars is like a soldier having the option to turn around and shoot his own fellow soldiers. There’s a word for that. SABOTAGE. It has to stop.
No matter what Nigeria exports, Nigerians will prefer to save in foreign currency, and with that option, naira can NEVER appreciate. NEVER. A responsible govt can not tolerate that nonsense.
If you need to buy anything from abroad in dollars. You go to your bank, they do the conversion, and debit you in naira.

nextstep:
Three large economies with foreign currency (aka domiciliary) accounts:

USA: https://www.pnc.com/en/corporate-and-institutional/international-services/multicurrency-accounts.html
Japan: https://www.smbctb.co.jp/en/product/foreigncurrency/
UK: https://www.expat.hsbc.com/multi-currency-accounts/

Not all banks, and not all countries, but there are many places where you can deposit foreign currency. Dom accounts are not our problem - a non-productive natural-resource-exporting economy is the problem.

Yes. Dom accounts ARE our problem. When naira reaches the level of dollars and pounds, you can have the option to have dom accounts. For now, it’s sabotage against the naira

bigtt76:
Clout chasers. It would make sense what the law maker is saying if the CBN prevents local funding of the domiciliary accounts from within Nigeria (by cash or electronically). It should be tied to receiving inflows only. The only exception would be for banks tying outflows approved to the account but not lodge it in.

Allowing it to be funded locally is the reason why many hoard forex. Trust me if they do this, rates would drop drastically.

where do you think the local ppl get the dollars from? Thin air?

humilitypays:
They need to ban dom account because Nigerian politicians are abusing it by using it to hoard dollar thereby causing scarcity.

you think they need accounts to hoard dollars.?
They found 43 mIllinois dollars in luxury apartment o

RZArecta:
Complete idiots in the corridors of power and all in the APC, tragic

none in Pdp ko? Only apc?

bigtt76:
Clout chasers. It would make sense what the law maker is saying if the CBN prevents local funding of the domiciliary accounts from within Nigeria (by cash or electronically). It should be tied to receiving inflows only.

Local funding of domiciliary accounts is negligible in the scheme of things.
Even if CBN follows your advice, it will have no effect because people can still hold dollars without banks.
I am not sure you have an idea how businesses who needs forex get it.

I know someone who helps some Nigerian companies source dollars as far as neighboring
West African countries. The fact is that CBN cannot fund Nigeria's need for dollar, so the price
must rise.

Allowing it to be funded locally is the reason why many hoard forex. Trust me if they do this, rates would drop drastically.

You also believe the lie that some people are "hoarding" dollars.
The same people are also "hoarding" Naira by virtue of it sitting in their accounts.
Command economy has never worked anywhere in the world.
The only way to deal with scarcity is matching supply, no shortcut!

dshokodiza:
...they can change it to naira...it will help naira grow...buying dollar with naira kills naira

I hope you don't own a phone, car or any electronics at home because will
be killing Naira!

DrBiyums:
There’s nothing new about receiving foreign currency. But it must be changed to naira immediately on arrival into the country. If you want to deal in dollars, leave the country.
If you want dollars for foreign business, your bank does the conversion at pay point via ur card or at the banking hall, and you are debited in naira.
People that send you dollars send you dollars because you need money. You don’t need dollars. You need money. If you want to save money in dollars, leave the country. Go to where it’s allowed.
As long as people have the option to save money in dollars, the naira will NEVER appreciate.
EVERY currency in the world goes UP AND DOWN against the dollar. ONLY the naira goes UP AND UP. Because when dollars is in excess and its price should go down, ppl collect it, NOT BECAUSE they’re using it, just because they’re saving it- in dom accounts. This is total madness. And should stop. It’s like everybody betting against the naira. It’s a no-brainer. The naira will NEVER appreciate no matter what we export unless dom accounts end.

There is a reason the confused Emefiele hasn't made the move yet.
Zimbabwe will be a child's play if you force people to change their dollars.
There are hundreds of ways of keeping and spending foreign currency as a Nigerian without
it touching Nigeria's financial system.

stanelvis:
What he is saying makes sense in a way, only if CBN can ban funding of Dom accounts locally. Anyone who needs forex for any reason can approach the bank and will get it at the official rate.
This will automatically stabilize the naira against dollar.
It doesn't really do the economy any good if someone can withdraw dollar from a bank and then exchange it outside.

People don't earn money to help the economy, they do it for themselves.
There is no official rate when CBN cannot meet demand, stop being confused.
If you think most companies get all their dollars from banks, then you don't really understand
the problem.

This naive idea have been tried throughout history and the result is always utter failure.

htdot:

This is the problem and you are one of them... why buying dollar that you are not using just to hoard? This is selfish and greedy... Buhari is not just the only problem of nigeria.... Do you no the effect of what you are doing and how it impact negatively to the poor masses? How this causes scarcity of dollar ans thereby leading to the price of things skyrocketing? Ppease also care about your neighbour and not just yourself.

You're asking why I hold assets that don't depreciate? I'm not hoarding, yet we know if I hold on to deposits in naira, my money will be worth half the amount in 5 years. I have money in naira, but through no fault of mine, nor my fellow citizens', the money is worth less - subject to the whims of the CBN and president.

An example: I want to save to pay school fees for my children - in naira mind you - but between this January and next, the naira drops in value by 30% (actually, inflation has eroded my naira since fees cost more than they did the previous year). With the dollars I saved, I can recoup more naira to pay the fees. Is government going to give me the extra 30% shortfall?

Another example: I'm saving to buy some equipment for my business - in dollars since we don't make equipment in this country and the sellers only take dollars, yuan, or euros. So like a good business person, I save for two years, only to find that what I wanted to buy is now 1.5x more expensive in naira terms. And who knows what forex restrictions on what equipment will be cooked up by a certain fellow in two years time? What incentive do I have to save in naira?

If I keep 1 million naira in treasuries - do you call that hoarding? Ok, what about 1 million naira in gold coins? Or real estate? Or in oil futures? But 1 million naira in dollar notes, that's different?

bigtt76:
Clout chasers. It would make sense what the law maker is saying if the CBN prevents local funding of the domiciliary accounts from within Nigeria (by cash or electronically). It should be tied to receiving inflows only. The only exception would be for banks tying outflows approved to the account but not lodge it in.

Allowing it to be funded locally is the reason why many hoard forex. Trust me if they do this, rates would drop drastically.

You get bigtt for sure. Make I no laugh, people dey buy cars, goods from abroad, banks no go give you access, but na one way una dey face. If we dey produce, your analysis go make sense, but as we dey.

DrBiyums:

What you are saying is just like you’re in an official function, and they’re singing Nigerian anthem, but you say you have the right to sing the American national anthem, and you start singing it. It’s madness. Just like you’re in Nigerian army and when you go to war against the U.S. soldiers, you turn round and start shooting your fellow Nigerian soldiers. You must understand that currencies are virtually at war with each other. Having the option for Nigerians to save in dollars is like a soldier having the option to turn around and shoot his own fellow soldiers. There’s a word for that. SABOTAGE. It has to stop.
No matter what Nigeria exports, Nigerians will prefer to save in foreign currency, and with that option, naira can NEVER appreciate. NEVER. A responsible govt can not tolerate that nonsense.
If you need to buy anything from abroad in dollars. You go to your bank, they do the conversion, and debit you in naira.

The fundamental problem is that this country only exchanges raw materials for dollars, and it has no say in the price it gets for that raw material. If Nigerians - I mean Nigerian companies - are able to get dollars in exchange for their goods and services (e.g exporting modern equipment and consumer goods) - and more importantly, gain a positive balance for adding value - there will be a much larger pool of dollars flowing around.

There are practically only two inflows of dollars into Nigeria (there are many, but only two are sizable for the purpose of my reply): commodity sales by FGN, and remittances by citizens. I don't really count FDI because they take out more in profits than they bring in investment.

Here's my understanding of the real problem (using some made up numbers to make a point):

a citizen abroad labors, and sends $1000 to Nigeria, where it is converted to naira, and eventually used to purchase foreign-made consumer goods. The problem is: Nigeria pays $1000 for essentially $800. The remaining $200 goes to the value-adding production/manufacturing systems in US/China. They take $800 worth of material and labor cost, and voila, it's now worth $1000, representing a $200 profit for them. The value-add to Nigeria is -$200, and to the foreign manufacturer +$200. US Fed gets its full $1000 back.

You could also apply the same to oil sales: Nigeria sells $800 worth of crude, US sells $1000 worth of petroleum products to us. Guess where the positive balance of payment is going?

Until Nigeria starts getting positive balance of payment, it will always lose value, irrespective of whether the money is "hoarded in a dom account" or "used to buy the latest phone".

nextstep:


The fundamental problem is that this country only exchanges raw materials for dollars, and it has no say in the price it gets for that raw material. If Nigerians - I mean Nigerian companies - are able to get dollars in exchange for their goods and services (e.g exporting modern equipment and consumer goods) - and more importantly, gain a positive balance for adding value - there will be a much larger pool of dollars flowing around.

Uncle sorry, but you’re wrong.
Citizens of a country CANNOT bet against their currency (by preferring another currency) and expect their own currency to rise. EVEN IF we’re exporting like China, because as more dollars is pumping in, more citizens are converting everything they have to dollars. Madness and Foolishness

nextstep:


You're asking why I hold assets that don't depreciate? I'm not hoarding, yet we know if I hold on to deposits in naira, my money will be worth half the amount in 5 years. I have money in naira, but through no fault of mine, nor my fellow citizens', the money is worth less - subject to the whims of the CBN and president.

An example: I want to save to pay school fees for my children - in naira mind you - but between this January and next, the naira drops in value by 30% (actually, inflation has eroded my naira since fees cost more than they did the previous year). With the dollars I saved, I can recoup more naira to pay the fees. Is government going to give me the extra 30% shortfall?

Another example: I'm saving to buy some equipment for my business - in dollars since we don't make equipment in this country and the sellers only take dollars, yuan, or euros. So like a good business person, I save for two years, only to find that what I wanted to buy is now 1.5x more expensive in naira terms. And who knows what forex restrictions on what equipment will be cooked up by a certain fellow in two years time? What incentive do I have to save in naira?

If I keep 1 million naira in treasuries - do you call that hoarding? Ok, what about 1 million naira in gold coins? Or real estate? Or in oil futures? But 1 million naira in dollar notes, that's different?

If you hoard in anything that is not another currency, it won’t affect the value of your currency against another currency, in so far as you do not need to change to another currency to get that product. Eg Nigerian real estate.
The thing that drives a currency is confidence. NOT export. It’s hard for you to understand that the cause of the naira depreciation is the dom accounts, it’s not the other way round.
If we continue this nonsense, one day Nigerian shops will tell you they collect only dollars. We are only doing ourselves
If I know that you prefer my currency to your currency, I’ll charge you an ever increasing amount for my currency irrespective of your export, until you tell me to Bleep off.
The French speaking west African sub region is heavily dependent on Nigerian produced goods. Yes Nigerian. Their currency was 620 to the dollar four years ago. Today it’s 520. Like a normal market, it goes up and down. But naira is always going down. WHY? Yet they depend on our manufacturing sector
Why can’t ppl see the rigmarole we have put ourselves in?

nextstep:


The fundamental problem is that this country only exchanges raw materials for dollars, and it has no say in the price it gets for that raw material. If Nigerians - I mean Nigerian companies - are able to get dollars in exchange for their goods and services (e.g exporting modern equipment and consumer goods) - and more importantly, gain a positive balance for adding value - there will be a much larger pool of dollars flowing around.

There are practically only two inflows of dollars into Nigeria (there are many, but only two are sizable for the purpose of my reply): commodity sales by FGN, and remittances by citizens. I don't really count FDI because they take out more in profits than they bring in investment.

Here's my understanding of the real problem (using some made up numbers to make a point):

a citizen abroad labors, and sends $1000 to Nigeria, where it is converted to naira, and eventually used to purchase foreign-made consumer goods. The problem is: Nigeria pays $1000 for essentially $800. The remaining $200 goes to the value-adding production/manufacturing systems in US/China. They take $800 worth of material and labor cost, and voila, it's now worth $1000, representing a $200 profit for them. The value-add to Nigeria is -$200, and to the foreign manufacturer +$200. US Fed gets its full $1000 back.

You could also apply the same to oil sales: Nigeria sells $800 worth of crude, US sells $1000 worth of petroleum products to us. Guess where the positive balance of payment is going?

Until Nigeria starts getting positive balance of payment, it will always lose value, irrespective of whether the money is "hoarded in a dom account" or "used to buy the latest phone".

Confidence drives a currency. Not export.
But I understand it’s hard for Nigerians to understand this
You keep hearing export export export. Are we the worst exporter in the world? The answer is no. So why is our currency doing the worst?

ivolt:

Local funding of domiciliary accounts is negligible in the scheme of things.
Even if CBN follows your advice, it will have no effect because people will.
I am not sure you have an idea how businesses who needs forex get it.

I know someone who helps some Nigerian companies source dollars as far as neighboring
West African countries. The fact is that CBN cannot fund Nigeria's need for dollar, so the price
must rise.


You also believe the lie that some people are "hoarding" dollars.
The same people are also "hoarding" Naira by virtue of it sitting in their accounts.
Command economy has never worked anywhere in the world.
The only way to deal with scarcity is matching supply, no shortcut!

Why won’t dollar be scarce when every fool is saving in dollars?
Confidence, not export, drives a currency

nextstep:


You're asking why I hold assets that don't depreciate? I'm not hoarding, yet we know if I hold on to deposits in naira, my money will be worth half the amount in 5 years. I have money in naira, but through no fault of mine, nor my fellow citizens', the money is worth less - subject to the whims of the CBN and president.

An example: I want to save to pay school fees for my children - in naira mind you - but between this January and next, the naira drops in value by 30% (actually, inflation has eroded my naira since fees cost more than they did the previous year). With the dollars I saved, I can recoup more naira to pay the fees. Is government going to give me the extra 30% shortfall?

Another example: I'm saving to buy some equipment for my business - in dollars since we don't make equipment in this country and the sellers only take dollars, yuan, or euros. So like a good business person, I save for two years, only to find that what I wanted to buy is now 1.5x more expensive in naira terms. And who knows what forex restrictions on what equipment will be cooked up by a certain fellow in two years time? What incentive do I have to save in naira?

If I keep 1 million naira in treasuries - do you call that hoarding? Ok, what about 1 million naira in gold coins? Or real estate? Or in oil futures? But 1 million naira in dollar notes, that's different?

You have done well to explain it to them, but they just feel the need to blame those needing USD as being responsible for the collapsing economy. The government and CBN are to be held for this.
If the economy was even stable for the past 5 years (let's ignore growth), the Naira won't be where it is today. A currency is a mirror of the economy it represents.

Most suggestions here about the forex shortage is like leaving a sickness to attend to the symptoms.
The only sure cure to forex issue is a robust local production that is as diversified as possible. If we don't aim for the above, someday somewhere, someone will want to something urgently, and if not locally available, he or she will try to buy it from outside. Now they don't spend naira outside Nigeria so there will be need for forex allover again.

For those hoarding dollar and other more stable forex, they are on the right path. Even market women hoard foodstuffs whenever they sense impeding shortages in supply. It is a well known behavioural pattern in market.

DrBiyums:

Why won’t dollar be scarce when every fool is saving in dollars?

Fools actually don't save in dollars because they have no idea how the value of a currency is determined.
And if you "save" $1000 in an account, it doesn't mean the bank always has $1000 cash to give you.
Banks are not thrift collectors.

Confidence, not export, drives a currency

Where does the confidence come from?

dshokodiza:
...they can change it to naira...it will help naira grow...buying dollar with naira kills naira

Come and force us! We even try to bring it down here for our banks to use and do business.