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CBN Lifts Ban On BDCs, Introduces New Operational Mechanism - Business (4) - Nairaland

Nairaland Forum / Nairaland / General / Business / CBN Lifts Ban On BDCs, Introduces New Operational Mechanism (25772 Views)

CBN Lifts FX Restrictions On Milk, Dairy Products Import To Crash Prices / CBN Lifts Ban On Cryptocurrency Transactions / CBN Lifts Restriction On Domiciliary Accounts, Allows $10k Withdrawals (2) (3) (4)

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Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by oz4real83(m): 9:09am On Aug 19, 2023
femicyrus:

You don't know the level of damage BDCs is causing the naira.
Irrespective of all you mentioned as way forward, Allow BDCs to dominate the forex market and see naira fall to N5000 to $1.
It is called "market forces" for no reason.
These are forces of darkness
these BDC operators will become jobless if the govt does the right thing. The govt should fight the corruption in the system and allow the market forces to determine the value of the naira.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by DeLaRue: 9:09am On Aug 19, 2023
Naajjii:

So we got to wait till 2025 for dangote refinery to start working. Don't you think that government can as well build another refinery before then?

Building a refinery will take about 7 years. If it is built by the Nigerian government it will take 9 - 10 years.

Due to eye-watering corruption, a refinery built by the government will cost way more to build and manage than one built by the private sector.

A government refinery will become a massive corruption centre.

No government-owned business works in Nigeria.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by alwayzonlyn(m): 9:10am On Aug 19, 2023
"Trial & error" government
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by DeLaRue: 9:15am On Aug 19, 2023
alwayzonlyn:
"Trial & error" government

That's because there's no easy solution.

Nigerians have turned buying and selling dollars into a big business.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Procashtips(m): 9:16am On Aug 19, 2023
Globad:


What's your suggestion?

Suggestions already listed in the comment I quoted.

If truly you were interested in solutions, you would have seen the suggestions.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by femicyrus(m): 9:17am On Aug 19, 2023
oz4real83:
these BDC operators will become jobless if the govt does the right thing. The govt should fight the corruption in the system and allow the market forces to determine the value of the naira.
Bdc is not a job in the 1st instance.
Banks ought to be changing currencies for Nigerians in need of it and not a 3rd party.

Bdc operators are not producing nor manufacturing anything to improve the economy of the country but are making life difficult for manufacturers with their so called profit from naira exchange.
That is why I call them forces of darkness

1 Like

Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by okeysoninv: 9:18am On Aug 19, 2023
oz4real83:
these BDC operators will become jobless if the govt does the right thing. The govt should fight the corruption in the system and allow the market forces to determine the value of the naira.
same way you guys were advocating to float naira . See where it has landed us. Most of you are educational illiterate.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Globad(f): 9:18am On Aug 19, 2023
owagbeba:


In past CBN gave BDCs $10,000 weekly… Emefiele cancelled that. Now we are back at it. Who knows how much they get weekly from CBN

Where did you see that we're back at it?
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Globad(f): 9:20am On Aug 19, 2023
Procashtips:


Suggestions already listed in the comment I quoted.

If truly you were interested in solutions, you would have seen the suggestions.

Both you and the person you quoted got the interpretation of the report wrong
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by BoldBrainz(m): 9:21am On Aug 19, 2023
IconicR:
Not our fault, Jonathan and Buhari are responsible for where we are today but be rest assured that everything will be fine in no distant time

What exactly do you understand about this new CBN initiative?
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Spidermon: 9:21am On Aug 19, 2023
Right time to buy dollars.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by just2endowed: 9:21am On Aug 19, 2023
Yugoslavia247:
Another policy somersault.

BDC na im go do daily and weekly account.

BDC are business men.

Now they will lobby for dollars.

Try to alter the market to favour them.

Then bring in the confusion again.

Is like tinubu employs people without checks.

Why no kukuma bring in fuel smugglers as fuel marketer.


Finally the floating of the naira has been defeated. If the government is now introducing a spread that the banks and bdc can buy and sell from, then there is no floating again.

Well it's a nice move but it wikk still lead to round tripping at the long run because sine smart criminal in the banks and bdc will beat the system.

1 Like

Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by jurgyvideos: 9:23am On Aug 19, 2023
Procashtips:


See them fighting symptoms instead of the disease.

Are we sure people use their brains in Nigeria when it comes to anything government?

God bless you for this comment
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by kolasoft: 9:30am On Aug 19, 2023
Welcome development gradually we will get there by his grace
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by do4luv14(m): 9:31am On Aug 19, 2023
TooNoisy:
Great move. Emefiele stopped the sale to BDCs and even went after the owner of abokifx. The dollar went from 150 to 750 vs $ under his reign.

Speculators who are profiting at the moment should get ready. Naira will end up around 700 to a dollar. By 2025 when the Dangite refinery becomes operational, the naira will even appreciate further.


Why #700 in 2 years, Why not the #150, or better still #250,
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by just2endowed: 9:35am On Aug 19, 2023
frazee:
What about the $3b oil swap deal they collected from afriexim are they still using it to stabilise the dollar rate or its gone

The 3 billion is where NNPC will be sourcing for dollar to import, it's not like the 3 billion is for Nigeria. But the advantage is that NNPC won't have to demand for dollars from our scarce dollar but from afriexim. This reduce pressure from the naira
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by GEEBITE: 9:37am On Aug 19, 2023
Please leave Dangote refinery out of your hopes from this Govt. The refinery is a scam.
TooNoisy:
Great move. Emefiele stopped the sale to BDCs and even went after the owner of abokifx. The dollar went from 150 to 750 vs $ under his reign.

Speculators who are profiting at the moment should get ready. Naira will end up around 700 to a dollar. By 2025 when the Dangite refinery becomes operational, the naira will even appreciate further.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by SeaTrade(m): 9:37am On Aug 19, 2023
Greystone:
It’s a good move by CBN.
The +2.5% allows for a decent profit margin and the daily, weekly, monthly and yearly reports force transparency from the BDCs. This will increase forex flow and help protect the Naira from the speculative and destructive forex trading we’ve witnessed.
The excess liquidity in the parallel market has been our biggest problem.
There's no excess liquidity in the parallel market,
The only reason it has been hiking prices is simply due to speculation and speculative,unrealistic demands.
Watch as just $1B will mop up all liquidity in that market and have them begging to sell their fx,even at prices lower than what's obtainable at the I&E window.
Personally if I was in power,I'll ban every form of street trading of fx and remove all independent players.
Currency no be moi moi to hawk.

2 Likes

Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Rich4god(m): 9:38am On Aug 19, 2023
Globad:


Where did you read this in the report?

Read with your financial mind. CBN said BDC will sell dollar at a specified spread. How will that be possible if not that CBN will be the one giving them the dollar.

As at 3 years ago, CBN were giving BDCs dollars before they latter stopped.

And even at that, CBN found it difficult to control the prices at which BDC sell.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by wirinet(m): 9:39am On Aug 19, 2023
EngrKemp:
The real value of dollar to naira is less than N200.

The petroleum products import put lots of pressure on naira and constantly crashes it.

All past managers of nnpc in the last 20 years should face trial and persecution and all past petroleum ministers from 1999 till date should face sanctions and jail term .

Put our refineries in good shape and let us produce our own petroleum products..

Naira will bounce back to about N200 and the economy will become very productive.


Very simple economics 101 solution, but corrupt and lazy political elites make it sound like rocket science. How can you import over 70% of your energy (apart from importation of basic food items) and still expect your currency to appreciate.

Now if Nigeria is a sensible country we should turn Nigeria into an oil refining country instead of an oil (crude) exporting country. Since there is a huge demand for refined petroleum products and our neighbours are ready to buy petrol at what ever price. If the government like, let them increase petrol to N1000/litre, it will always get at least 30% more expensive in Benin Republic, Niger, Cameroon. Also piping gas to those countries which are less than 1000km from our huge gas reserves would make economic sense. I don't even see the need to pipe to Europe yet, piping to our immediate neighbours will fetch us billions of dollars. Imagine how much Russia makes from selling gas to its neighbours. Germany is betrothed to Russia today because of gas.

1 Like 1 Share

Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Midehi3(f): 9:39am On Aug 19, 2023
IconicR:
Not our fault, Jonathan and Buhari are responsible for where we are today but be rest assured that everything will be fine in no distant time
You are really a confused being, Buhari your messiah then is now someone who messed Nigeria, your are just a confused circle
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by tnerro1(m): 9:39am On Aug 19, 2023
Story, as long as Nigerians import everything and politicians prefer to receive their bribes in dollars, nothing will change, it’s only temporary
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Nobody: 9:40am On Aug 19, 2023
Midehi3:

You are really a confused being, Buhari your messiah then is now someone who messed Nigeria, your are just a confused circle

Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by wirinet(m): 9:40am On Aug 19, 2023
Rich4god:


Read with your financial mind. CBN said BDC will sell dollar at a specified spread. How will that be possible if not that CBN will be the one giving them the dollar.

As at 3 years ago, CBN were giving BDCs dollars before they latter stopped.

And even at that, CBN found it difficult to control the prices at which BDC sell.

Where does the CBN hope to get the dollars to sell to BDC?
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Cowbell521: 9:41am On Aug 19, 2023
Siberia01:
grin

Big grammars with little or no effects
Can someone please explain
Go to school
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by grandstar(m): 9:42am On Aug 19, 2023
I'm going to withdraw the forex left in my dorm account first thing on Monday morning. I suspect the Naira will strengthen in value.

I exchange most of my forex last when Tinubu gave the matching order to the CBN to improve liquidity in the system. By 12 noon next day, I exchanged dollars at 932 to the dollar.

I suspect mat go below 800 by Wednesday.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by telleyway: 9:42am On Aug 19, 2023
IconicR:
It's a gradual process, we will surely get there
Nigerians should be patient with us, remember we didn't promise an overnight change, only the deceitful messiah did that.
We met a huge mess on ground and only drastic decisions can make an effective change.

Creating artificial problem and claiming to come up with a solution is always the most stupid APC strategy. When the Chicago accountant and that Yoruba acting CBN governor in a bid to please their masters announced floating naira and removal of BDC, you all hailed it to high heavens.
Now that the policy failed and they're trying to hide their shame instead of apologizing to Nigerians, you are here doing your paid job.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by GEEBITE: 9:43am On Aug 19, 2023
They must find a way to bring Jonathan in to the conversation anywhow.
IconicR:
Not our fault, Jonathan and Buhari are responsible for where we are today but be rest assured that everything will be fine in no distant time
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Siberia01(m): 9:44am On Aug 19, 2023
Cowbell521:
Go to school
ok boss
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Rich4god(m): 9:45am On Aug 19, 2023
owagbeba:


A simple question, why can’t bank take Naira and process fx remittance for their customers at spread rate introduced by CBN?

The chase for physical, paper Dollar is causing this market distortion.

BDCs have perfected RMB/YUAN remittances, you pay them naira, and they credit Chinese bank account in RMB.

This is the best thing. There is no need having two different exchange rate. No matter what CBN does, as long as the average man can go to BDC and purchase dollar, there will always be disparity between official rate and black market.

What CBN need to do is to ensure that dollar is not in the hands of the citizens. Any one that needs dollar for importation, school or health should go and bank and bank will make the payment for them. All the local schools and organisations that transact in dollars should be discouraged. Some wealthy individuals will just use naira to buy dollars only to pile it up in their dorm accts. All these are part of what is making price of dollar skyrocket at the black market.

If CBN wants to achieve a little stability, they should starve the BDCs of dollar so that the average citizens cannot easily access it.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Rich4god(m): 9:47am On Aug 19, 2023
wirinet:


Where does the CBN hope to get the dollars to sell to BDC?

AHH... CBN gets steady flow of dollars from remittances, FDI and export proceeds.
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Average9jaman: 9:49am On Aug 19, 2023
TooNoisy:
Great move. Emefiele stopped the sale to BDCs and even went after the owner of abokifx. The dollar went from 150 to 750 vs $ under his reign.

Speculators who are profiting at the moment should get ready. Naira will end up around 700 to a dollar. By 2025 when the Dangite refinery becomes operational, the naira will even appreciate further.

Hmm, yeye dey smell 💩

Who told you??

Financial expert with no financial knowledge

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