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Nairaland Forum / Nairaland / General / Business / CBN Lifts Ban On BDCs, Introduces New Operational Mechanism (25540 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 $10k Withdrawals (2) (3) (4)
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Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by owagbeba: 9:49am On Aug 19, 2023 |
Globad: The report says, “Under the new framework, the spread on buying and selling by BDC operators is set to fall within a permissible range of -2.5% to +2.5% of the Nigerian Foreign Exchange market window’s weighted average rate from the previous day.” Doesn’t it mean BDC’s will be allowed to buy FX from CBN and sell within -/+2.5 band ? In the past they sold 10,000$ weekly to BDCs before Emefiele canceled the policy. NOW CBN IS BACK TO SELLING TO BDC. 1 Like |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Globad(f): 9:50am On Aug 19, 2023 |
Rich4god: 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 |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by JaskanFactor: 9:51am On Aug 19, 2023 |
Arijude: 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 1 Like |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Globad(f): 9:52am On Aug 19, 2023 |
owagbeba: 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 |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by wirinet(m): 9:52am On Aug 19, 2023 |
Rich4god: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. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Proudlyomonna: 9:56am On Aug 19, 2023 |
Globad: 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. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by kunle4toyeyaho: 9:59am On Aug 19, 2023 |
KEVIND:Tinubu has made oxygen available,It is now left to you to breathe or suffocate |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by OfficialP: 10:00am On Aug 19, 2023 |
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 |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Rich4god(m): 10:00am On Aug 19, 2023 |
Globad: 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. 1 Like |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by GEEBITE: 10:04am On Aug 19, 2023 |
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: |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by grandstar(m): 10:04am On Aug 19, 2023 |
TooNoisy: First thing Monday morning,, I'm changing my last dollars. I know the Naira will streghthen but I am unsure by how much |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by owagbeba: 10:04am On Aug 19, 2023 |
Rich4god: 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 |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by wirinet(m): 10:06am On Aug 19, 2023 |
Rich4god: 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? |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by owagbeba: 10:11am On Aug 19, 2023 |
Globad: 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? |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Rich4god(m): 10:15am On Aug 19, 2023 |
owagbeba: 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. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by wirinet(m): 10:18am On Aug 19, 2023 |
owagbeba: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. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Rich4god(m): 10:19am On Aug 19, 2023 |
wirinet: 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. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by RevenuesBoost(f): 10:20am On Aug 19, 2023 |
Hope it works |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Globad(f): 10:21am On Aug 19, 2023 |
owagbeba: 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 |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by StarRiderr: 10:23am On Aug 19, 2023 |
harmargedon:na the game be that nah |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Ejebleje: 10:23am On Aug 19, 2023 |
walexpal: My brother, I admire your optimism,but this is a land of great paradoxes. It is well |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by wirinet(m): 10:28am On Aug 19, 2023 |
Rich4god: 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. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by EngrKemp: 10:29am On Aug 19, 2023 |
squash47:Life imprisonment when found unproductive and culpable 1 Like |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by owagbeba: 10:29am On Aug 19, 2023 |
Rich4god: 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. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Eriokanmi: 10:31am On Aug 19, 2023 |
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. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Rich4god(m): 10:34am On Aug 19, 2023 |
wirinet: 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. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Rich4god(m): 10:36am On Aug 19, 2023 |
Globad: Please, where is regulated FX markets. |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by owagbeba: 10:44am On Aug 19, 2023 |
Globad: 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. 1 Like |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by wirinet(m): 10:49am On Aug 19, 2023 |
Rich4god: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. 1 Like 1 Share |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by H2ho(m): 10:51am On Aug 19, 2023 |
wirinet: Hmm VDF Bank comes to mind ![]() |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by emmyN(m): 10:57am On Aug 19, 2023 |
TooNoisy: Very convenient to blame Emefiele ![]() |
Re: CBN Lifts Ban On BDCs, Introduces New Operational Mechanism by Globad(f): 11:04am On Aug 19, 2023 |
owagbeba: My point is that your second to the last paragraph is an assumption that is feeding your last paragraph |
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