Globad:


Where did you see that we're back at it?

The report says, “Under the new framework, the spread on buying and selling by BDC operators is set to fall within a permissible range of -2.5% to +2.5% of the Nigerian Foreign Exchange market window’s weighted average rate from the previous day.”

Doesn’t it mean BDC’s will be allowed to buy FX from CBN and sell within -/+2.5 band ?

In the past they sold 10,000$ weekly to BDCs before Emefiele canceled the policy. NOW CBN IS BACK TO SELLING TO BDC.

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.

CBN doesn't have to give you dollars before regulating the pricing of its trade.

CBN regulates the pricing of loans without giving banks the money to lend.

Hope you're getting my point

That report was more about ensuring better returns and monitoring and critics went overboard and equated it with policy somersault.

Why not wait until the policy reversal is clear?

The headline didn't also help matters though

Arijude:
is it falling again?

My friend has been buying foreign currency everyday for the last week, and everyday in last week naira was less valuable
But he was lucky cause all the other people that used to change money for him dont even take his calls anymore, they dont want naira.

I just hope there is no poor anybody keeping naira as savings in the bank, cause that is like storing water in a leaking bucket.

Please dont ask if naira is falling again , its done nothing but fall ever since the Europeans that run Nigeria gave us fake Independence using puppets. The BDC people dont want naira anymore. Its used to be two pounds to one naira .

At this point all the poor and middle class people in Nigeria are doomed if they dont adopt something like dollar or euro as the currency they use to trade. Cause they Europeans destroying Nigeria wont destroy thier own currency.

Nigerians work 100 times harder than europe , and yet naira is falling in value faster than useless waste.
Thats how much the oyinbo that run Nigeria love you. All them tinubu etc are puppets with no power but to take instructions on what next wicked thing to do to the population.


Please niger people, start trading in foriegn currency, using naira is like letting your enemy know where to find you

owagbeba:


The report says, “Under the new framework, the spread on buying and selling by BDC operators is set to fall within a permissible range of -2.5% to +2.5% of the Nigerian Foreign Exchange market window’s weighted average rate from the previous day.”

Doesn’t it mean BDC’s will be allowed to buy FX from CBN and sell within -/+2.5 band ?

In the past they sold 10,000$ weekly to BDCs before Emefiele canceled the policy. NOW CBN IS BACK TO SELLING TO BDC.

You're now asking a question that should have been asked from the beginning

I insist that there's nothing in the report that clearly states that the CBN is back to where it was

Rich4god:


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.

The banks are the main problem. Let me give you one info you will not get elsewhere - the banks make most of their profits from round tripping. I knew someone that was an aid to Tony Elumelu when he was was at Standard Trust Bank. He revealed to me Tony himself and Standard Trust Bank were raking in billions from buying from CBN and selling through BDCs to ordinary citizens. The situation remained the same or even worse under Emefiele.

Globad:


It's only someone that's mentally unstable that would state that others who think different from him is mentally unstable

There's no such thing as thinking differently in this case,it's plain common sense.

You keep a goat in the care of a lion yet you think the lion will not do what it knows to do best with the goat,are you playing

When You want to have a clear navigation of actions,if You are mentally sound,You seek to address the sponsoring thought and intentions that warrant the action. The ground standing of the creation of this evil demonic APC structure was never for good governance,it was to snatch power from PDP and to keep it at all cost,looting was uplifted bcus this evil fifth columnist put in so much resources to be get to this point,do You think all the money they spent on electoria criminalities will go to waste??

I am sure You do not know that political parties should have philosophies and ideologies and how they hence affects the people they govern,to a majority of people whose mental health has been terribly wounded by the unhealthy political jamboree We play down here,You somewhat have been patterned to believe politics is just for Win at all cost.

Btw anyone who dares to believe Tinubu and His evil Apc structure can go into the ballots with the intentiion of free and fair election should seek help,their mind is not functioning well.

KEVIND:

Moving in circles .
APC & Tinubu,let the poor breath ooo

Tinubu has made oxygen available,It is now left to you to breathe or suffocate

Just speechless. This won't solve anything, Naira will only appreciate briefly and dump again.



Get the nation working and productive, export more and see the magic. Its so simple, why is FG not considering this

Globad:


CBN doesn't have to give you dollars before regulating the pricing of its trade.

CBN regulates the pricing of loans without giving banks the money to lend.

Hope you're getting my point

That report was more about ensuring better returns and monitoring and critics went overboard and equated it with policy somersault.

Why not wait until the policy reversal is clear?

The headline didn't also help matters though

CBN gives BDC dollars as at 3 years ago.

And that's what they want to start doing now. Part of the measures the presidency mentioned was to create enough liquidity for dollars.

As at 3 years ago, CBN gives virtually every registered BDC operator about 10k dollars 2-3 times a week.

You think so. Not only fuel import that is putting the pressure on naira. On the ladies "Brazillian hair" alone,$1.5B was spent on synthesized hairs import form China and Vietnam last year. When they ran out of countries' names they began to call it bone straight. The irony is that major components used in the process are petrochemical by producs.

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.

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.

First thing Monday morning,, I'm changing my last dollars. I know the Naira will streghthen but I am unsure by how much

Rich4god:


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.

Spot on! You could even give room to those who want to save in dollars by allowing them to covert Naira to dollar and save in dormicilliary account. If at any time they need to withdraw, they only get the naira equivalent at the days rate. Though this might be controversial but it can be adjusted in a way to give customers the option of Travellers cheque for those needing to travel with cash; and an option to make request for FX cash withdrawal with a waiting period of say 30days…just not sure how this last part would work.

The idea is to eliminate the need for cash FX.
Business folks can settle oversea debts through banks. Local companies needing FX payments can be paid in FX but withdrawal would be in Naira, school fees and medical bill all through bank remittance. BTA in travellers cheque… savers get the FX in dormicilliary account only able to withdraw naira equivalent or cash FX after a stipulated period of wait.

Just a thought… not BDC-proof

Rich4god:


AHH... CBN gets steady flow of dollars from remittances, FDI and export proceeds.

How many Nigerians send remittances through the banks when Binance is there. Check Binance P2P naira page and you will see people trading N50 million at a go.

How many FDIs have entered Nigeria this year to have any dent on the exchange rate?

Export proceed simply means crude exports. You are aware that over 80% of our foreign earning is from crude. Now, Nigeria currently exports about 1.2 million barrels per day, far less than our export quota of 1.2 million barrels per day. Under Jonathan we were exporting 2 million barrels per day. Now after deducting cost of production and the joint partners share of 40%, how much is left for Nigeria to shore up our currency?

Globad:


You're now asking a question that should have been asked from the beginning

I insist that there's nothing in the report that clearly states that the CBN is back to where it was

Honestly I don’t know what you are getting at, but if CBN is letting BDCs back into the FX market, and allow them to buy from FX market and sell within a band, doesn’t it mean CBN will allow them to buy FX in CBN regulated FX market. Aren’t we back to the system of old?

owagbeba:


Spot on! You could even give room to those who want to save in dollars by allowing them to covert Naira to dollar and save in dormicilliary account. If at any time they need to withdraw, they only get the naira equivalent at the days rate. Though this might be controversial but it can be adjusted in a way to give customers the option of Travellers cheque for those needing to travel with cash; and an option to make request for FX cash withdrawal with a waiting period of say 30days…just not sure how this last part would work.

The idea is to eliminate the need for cash FX.
Business folks can settle oversea debts through banks. Local companies needing FX payments can be paid in FX but withdrawal would be in Naira, school fees and medical bill all through bank remittance. BTA in travellers cheque… savers get the FX in dormicilliary account only able to withdraw naira equivalent or cash FX after a stipulated period of wait.

Just a thought… not BDC-proof

It can be BDC proof when CBN gradually withdraws all the FX in the hands of citizens. And this can be achieved by what you said... "Those with dorm account or inflows can only withdraw naira".

Do you know that as at last week, there was scarcity of FX cash and this contributes to the rose in price. Even in banks, people where unable to withdraw FX because there was no cash. But the moment govt said they will intervene, the dollars came back to banks and prices crashed.

owagbeba:


Honestly I don’t know what you are getting at, but if CBN is letting BDCs back into the FX market, and allow them to buy from FX market and sell within a band, doesn’t it mean CBN will allow them to buy FX in CBN regulated FX market. Aren’t we back to the system of old?

Don't mind them very confused people. They will introduce one useless policy, when the economic repercussions starts biting, they quickly reverse policy. By then we are far worse than where we were. Examples are Naira redesign policy, fuel subsidy, BDCs and now I and E window.

wirinet:


How many Nigerians send remittances through the banks when Binance is there. Check Binance P2P naira page and you will see people trading N50 million at a go.

How many FDIs have entered Nigeria this year to have any dent on the exchange rate?

Export proceed simply means crude exports. You are aware that over 80% of our foreign earning is from crude. Now, Nigeria currently exports about 1.2 million barrels per day, far less than our export quota of 1.2 million barrels per day. Under Jonathan we were exporting 2 million barrels per day. Now after deducting cost of production and the joint partners share of 40%, how much is left for Nigeria to shore up our currency?

O boy.... You don't know what you are talking about.

Let's even forget about all I mentioned before. Have you heard of the I and E window. Do you know whats going on there? Abi you will still ask how they get the dollars too.

Hope it works

owagbeba:


Honestly I don’t know what you are getting at, but if CBN is letting BDCs back into the FX market, and allow them to buy from FX market and sell within a band, doesn’t it mean CBN will allow them to buy FX in CBN regulated FX market. Aren’t we back to the system of old?

Hehehehe

CBN was allocating dollars to BDCs.

It's no longer allocating and the report didn't say that it will allocate.

Did CBN stop them from buying in regulated FX market? If they did, please show the evidenced

harmargedon:
Good development. CBN abeg no use their financial report take bill them o 😂😂😂😂😂

na the game be that nah

walexpal:


This is actually a good move in my opinion as well. The illiquidity at the parallel market has continue to drag the price of dollar upward. The wise thing for government to do is to address the issue. The $3 billion dollars from Afrexim will help stabilize the market for a reasonable time pending when we are able to increase our crude oil production and possibly Dangote Refinery coming up.

My brother, I admire your optimism,but this is a land of great paradoxes. It is well

Rich4god:


O boy.... You don't know what you are talking about.

Let's even forget about all I mentioned before. Have you heard of the I and E window. Do you know whats going on there? Abi you will still ask how they get the dollars too.

I have been a business nan for over 20 years, I am not a white collar worker or a civil servants. I understand the practical aspects of business.

All these policies are window dressing, they cannot address the elephant in the room, which is low or dwindling productivity against growing demand. A sane government would invest heavily in increasing productivity and not curtailing and stifling businesses. What will increase productivity? - Constant and relatively cheap power, less government restrictions, some degree of currency stability, available and relatively cheap capital, actual regulations by government agencies. CBN and the banks are behaving like partners instead of regulators.

squash47:

What do you advise we do the former minister of petroleum.

Life imprisonment when found unproductive and culpable

Rich4god:


It can be BDC proof when CBN gradually withdraws all the FX in the hands of citizens. And this can be achieved by what you said... "Those with dorm account or inflows can only withdraw naira".

Do you know that as at last week, there was scarcity of FX cash and this contributes to the rose in price. Even in banks, people where unable to withdraw FX because there was no cash. But the moment govt said they will intervene, the dollars came back to banks and prices crashed.

Can you say our banks are lazy? They are not just upto the game. Before MONIEPOINT can into the game with their efficient POS terminals, the Big banks only issued POS terminals with a sim protocol; very cumbersome to use in our patchy network. Transactions could easily fail…you get debited but POS terminal says otherwise “failed transaction”

Moniepoint changed the game, they brought in POS terminals with internet protocol. Making it easier and less controversial. Now all the big banks are following suit with internet enabled POS Tetminals.

Same with the BDCs in RMBYUAN remittance to China. I thought our big banks would enable RmB remittance through the government’s currency swap with China. But nothing came out of it.

I think they are only interested in giving loans to state governments.

If you have dollar in your account , thinking you'd wait until it gets to 1k before you start selling, do the needful now. Don't come here and be telling us you're contemplating suicide oo. As you don chop small in the last 2 months, better jettison that dollar sharply cos its falling yakata already.

wirinet:


I have been a business nan for over 20 years, I am not a white collar worker or a civil servants. I understand the practical aspects of business.

All these policies are window dressing, they cannot address the elephant in the room, which is low or dwindling productivity against growing demand. A sane government would invest heavily in increasing productivity and not curtailing and stifling businesses. What will increase productivity? - Constant and relatively cheap power, less government restrictions, some degree of currency stability, available and relatively cheap capital, actual regulations by government agencies. CBN and the banks are behaving like partners instead of regulators.

Above all... Just like you said, the best way to go about this issue is to increase our productivity that will reduce demands for imports.

I want you all to follow the track of Alex Otti. Politics apart, ABIA state will soon be transformed. For now, the first step is to rehabilitate all the roads before enhancing the industry.

Globad:


Hehehehe

CBN was allocating dollars to BDCs.

It's no longer allocating and the report didn't say that it will allocate.

Did CBN stop them from buying in regulated FX market? If they did, please show the evidenced

Please, where is regulated FX markets.

Globad:


Hehehehe

CBN was allocating dollars to BDCs.

It's no longer allocating and the report didn't say that it will allocate.

Did CBN stop them from buying in regulated FX market? If they did, please show the evidenced

Well.. it was called I&E window ..an FX window but basically it was an fx allotment scheme. And the scheme didn’t have enough FX to meet all request. That was the reason emirates pulled from Nigeria. Their naira earnings could not be converted enough in time in the so called FX window. At that time BDCs were allowed 10k weekly.

Arbitrage by BDCs made Emefiele to kick them out requiring them to source their own FX from the public.

Now CBN want them (BDCs) back in provided they will sell within-+2.5 band. The new I&E ( now name changed) still doesn’t have enough liquidity to Carter for all demands. Currency was devalued hoping to draw in liquidity.

It will boil down to allotment weekly or daily to BDCs… how much? I don’t know.

We are back to where we started.

Rich4god:


Above all... Just like you said, the best way to go about this issue is to increase our productivity that will reduce demands for imports.

I want you all to follow the track of Alex Otti. Politics apart, ABIA state will soon be transformed. For now, the first step is to rehabilitate all the roads before enhancing the industry.

I am glad that you agree that only way out of our economic doldrums is increasing productivity. Nigeria is a very unproductive country.
I hope Alex Otti is able to improve productivity and quit relying on handouts from Abuja as done by almost all other governors.

Now productivity starts from Education, and when I say education, I mean practical education relevant to the economy. I don't see getting a degree in astronomy as relevant education when we don't have an observatory. A sane government must invest heavily in education, at least primary and secondary education. Its only educated and skilful people that can be productive. Illiterates end up being Abgeros, IPOB, militants or Boko Haram. Then investment in infrastructure is a must, particularly power. All human activities are driven by power.

All Tinubu's policies since may 29 has led to increase in productivity. I cringe when I hear some state governments want to revert to a 3 day working week or than Unibadan want to give its staff a 3 day working week. Can you imagine the impact on our already abysmal educational system? And the graduates of these universities are expected to compete in the world market.

Read up on how China was able build a modern advanced society in 30 years.

wirinet:

The banks are the main problem. Let me give you one info you will not get elsewhere - the banks make most of their profits from round tripping. I knew someone that was an aid to Tony Elumelu when he was was at Standard Trust Bank. He revealed to me Tony himself and Standard Trust Bank were raking in billions from buying from CBN and selling through BDCs to ordinary citizens. The situation remained the same or even worse under Emefiele.

Hmm VDF Bank comes to mind

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.

Very convenient to blame Emefiele

owagbeba:


Well.. it was called I&E window ..an FX window but basically it was an fx allotment scheme. And the scheme didn’t have enough FX to meet all request. That was the reason emirates pulled from Nigeria. Their naira earnings could not be converted enough in time in the so called FX window. At that time BDCs were allowed 10k weekly.

Arbitrage by BDCs made Emefiele to kick them out requiring them to source their own FX from the public.

Now CBN want them (BDCs) back in provided they will sell within-+2.5 band. The new I&E ( now name changed) still doesn’t have enough liquidity to Carter for all demands. Currency was devalued hoping to draw in liquidity.

It will boil down to allotment weekly or daily to BDCs… how much? I don’t know.

We are back to where we started.

My point is that your second to the last paragraph is an assumption that is feeding your last paragraph