Namaster:
Tinubu and Cardoso have made another HUGE mistake.

Fools are tightening the noose around banks receiving Forex inflow when there are LITERALLY tons of other ways to receive your money.

No one will use banks to receive money with their nonsense exchange rates when there are better options out there.

Cardoso is a prime example of an extremely inspired idiot.

Imagine creating more hurdles for receiving Forex when the country is already groaning about NOT receiving any Forex in the first place.

That's like pouring MORE water on a drowning man.

Tinubu has no idea what to do with Nigeria. He's too proud and too nepotistic to get people who can help him out of the mess he's created.

I'm always tempted to respond to people like you not just for the shallowness of your comment but for the number of people who like the comment.... it's OK if it's one mumu comment but multiple people finding mumu comment inspiring needs my attention....

1) The so-called scarce dollar that you said where coming in before this pay-dollar-in-naira-only policy...were those dollars going into the banking system or blackmarket system? Be honest with your answer ooo that's how they do round-tripping which is the main problem that causes unstable exchange rate which is what actually discourages "foreign" investors

2) The officially registered BDC can apply for dollar and buy through the offical channel after showing statement of account of how his previous purchase of dollar were sold out....mind you this is how it is expected for black market to work....they are allowed to add a profit of about N50 to N200 max to the offical rate as profit but lack of control allowed for round tripping by government and Bank executive in collaboration with black market operators.

3) Always look at issues objectively....Tinubu is not the best man for the job but is the best man among Peter Obi, Atiku and Kwankwanso accept this fact so that you can be at peace and enjoy the renewed hope that is in labour now....by this time next year shame won't stop you from praising Tinubu for a good job

You'll see how exchange rate will stabilise in a month or two with the implementation of this policy.

AntiChristian:


So what do you suggest they do?
Are we not the enemy of ourselves?

The solution would involve going head to head with their politicians friends. They will never do that.
Fighting corruption effectively is a big risk for those in power. They can't because of the big toes that will be cut off.

JuanDeDios:

BDCs, Fintechs, whatever, people will just want a place to trade currency at its true VALUE as long as there's a DUAL rate. I'd bet my bottom naira that BDCs will start becoming Fintechs.

Anyway, the joke is on you if you think those guys that stand on the road at Ojodu Berger or Allen need $1m or any amount to do business. It's called "black market" for a reason.

Lol... Those 4 by 4 kiosks at berger don't control enough volume to impact the exchange rate. How much volume dem dey move per day? Those ones are shrimps.

BennyDGreat:

I will be back to quote you when this policy flops.
You only consider one part...without examining other critical areas and you think you can arrive at a wholesome conclusion?

Cheers Mr

Unfortunately, it won't flop. The idea is to remove the attractiveness of IMTOs.
With a unified rate, why should I use P2P to pay me Naira when banks can pay me the same rate with the click of a button.

Ibrahimcoomasie:
Access, GTB, UBA, Zenith Others To Pay Customers Money Sent From Abroad in Naira, Give Exchange Rate



https://www.legit.ng/business-economy/money/1577735-come-passport-nigerian-bank-announces-internation-money-transfer-operation/

Which exchange rate would they use to convert the money to Naira? This was not stated in the article, OP.

SoNature:

Mugv, it's a typo. This is it: I am sure you have never gone to a bank before to have your naira converted into USD cash. If you did, you would know that the terms and conditions are so crazy that you would quietly respect yourself and leave that bank.

If they want to convert all USD receipts to naira payouts, they should also make USD notes available to Nigerians who wish to convert their naira to USD for travelling out of the country. It works both ways...

You're the fo0l here, ol0do still displaying ignorance, there's nothing you'll write that will mask your dullne$$. Interestingly I still converted to Naira via gtbank at official rate for that day few days ago and I have my proof.
If you are ignorant of something better you keep shut than displaying ignorance on a public forum.

And as regards usage for traveling out, there is nothing special about it as you can get fx officially through cbn PTA. Seek knowledge!!!

The question is converting Naira to USD for what when all that I need USD for I could do it officially on the cbn portal or via the banks

femicyrus:

What do you want to buy in dollars in Nigeria?
Yam, agbado or cassava?
Or you want to sell the dollar at a higher rate to BDC while the naira suffers

Why must you convert all my money to naira at once knowing the naira is on a free fall and my 10k USD could become 8500 in 12 hours....It's because you are not affected.

What's now the purpose of dorm account?

Why must you control what I do with my money?

Nobody will send in any big money again unless they need to use it urgently.

They only reverted the policy they created 3 years ago to ensure that all inflow from abroad is paid directly to the beneficiary in USD. This policy will create more dollar scarcity and 1 USD will hit 2000 within 5 months. It's our politicians and banks that are supplying BDC dollars and they now have a central point to gather more USD.

BennyDGreat:


The solution would involve going head to head with their politicians friends. They will never do that.
Fighting corruption effectively is a big risk for those in power. They can't because of the big toes that will be cut off.

Are they not included in the law now?

Coldspice:


Unfortunately, it won't flop. The idea is to remove the attractiveness of IMTOs.
With a unified rate, why should I use P2P to pay me Naira when banks can pay me the same rate with the click of a button.

Will this stop the free fall?

You are aware the demand for dollars will never stop given the amount used in import, foreign education real....

These kinds of policies is what cuts off the people's trust in government and drive panic exit....some people who never considered japa before will do so now seeing they cannot trust the government.

What's the plan to increase local production?
Combat insecurity
Fight the corruption within the FX...
Why don't they go after politicians that are majorly involved in mopping up a lot of dollars and hoarding?

All these wuru wuru tactics is just to avoid going into combat with their politician friends and fighting corruption

melodyogonna:
This has not always been the case?

Can you imagine the nonsense we do in this country?

It's like sending naira to the USA and the recipient withdrawing Naira from Chase or Wells Fargo. It's absurd. Lol

Inspirer1:

You're the fo0l here, ol0do still displaying ignorance, there's nothing you'll write that will mask your dullne$$. Interestingly I still converted to Naira via gtbank at official rate for that day few days ago and I have my proof.
If you are ignorant of something better you keep shut than displaying ignorance on a public forum.

And as regards usage for traveling out, there is nothing special about it as you can get fx officially through cbn PTA. Seek knowledge!!!

Oga, rest! If you want to convert your naira notes to USD notes in Nigeria, banks will frustrate you. That's why everyone goes to the black market.

Stop displaying your ignorance on Nairaland claiming what you are not. I won't reply you again because e don enter small pikin talk. For all I know, you are probably less than 18.

sweetgala:


We don't need dollars in circulation, our currency is not the dollar.

What Cardoso is trying to do is exactly that to remove the need for the dollar and place FX within the CBN to be deployed through the official banking channels

We need dollars for importation since we are producing little or nothing and as long as dollar keep rising in this country because of its scarcity, goods and services will always be on the rise.

The dollars we are to use for importation and other viable economic activities have been bought up with looted funds from politicians and civil servants thus rendering our naira worthless.

AntiChristian:


Are they not included in the law now?

Many key political figures in Nigeria operate above the law. The institutions are too weak. Too much government influence and lack independence.

It is what it is.

They are really stupid in government. This again will increase prices of food items because you can’t import without foreign currency and creating more scarcity of dollars will also create scarcity of goods and this will lead to more increase in prices of goods and businesses folding up. In a country where the survival of businesses and the citizens depend on importation. What were they expecting to happen to the country when they had zero plans for the country because they care only about themselves, they forgot they must feed the cow they are milking everyday.

The politicians are the problem of this country. They are always looking for alternative to meet up with their extravagant lifestyles. Since the price of petroleum exportation dropped down the only solution they could think of is taxing the citizens more and using the same taxes for their personal expenses and the running of the government.
They never thought of establishing production companies which will generate revenues, create employment and reduce dependency on importation.

They looted the country for so many years and till today they are still looting the country dry. All the money they looted is enough to create production companies and many other avenues to increase the wealth of the country which in turn would make the naira strong.

You can’t give what you don’t have. We are heading to dangerous years where no one will be safe to live in the country. The hate seeing the citizens prospering and living successfully. Soon all of them destroying the country with their criminal behaviours will face the wrath of the citizens because you can’t tell a hungry man not to cry.

justmondris:
They only reverted the policy they created 3 years ago to ensure that all inflow from abroad is paid directly to the beneficiary in USD. This policy will create more dollar scarcity and 1 USD will hit 2000 within 5 months. It's our politicians and banks that are supplying BDC dollars and they now have a central point to gather more USD.

Cardoso is on the right path. It's now left to him to enforce these policies with iron fist. The die is cast. I guess this was part of the issues he discussed with Wale Edun and the EFCC boss. Let wait and see how it plays out. I wish him well.

This is a violation of people’s right to earn and spend. Round tripping among bank officials including the CBN has been revealed as one of the major cause of our forex crisis…. Has the CBN and banks purged itself of corruption….? This new measure will discourage forex remittances from Nigerians abroad, local businesses and foreign investors…. It will exacerbate the situation….

Forkthiefnubu:
The aboki jiahadist seems to know more about liberal economics than the fake lagos wiz kids, i have always known that these scare face boys are full of hot air

I hope you know that liberal economics, was formulated by the evil IMF/ WORLD SLAVERY BANK, in order to recolonise.the economies of black countries, for raw materials, while making the citizens the paupers of the world.
It's a design by the pink supremacists.

Bobloco:


How?

Do you mind explaining?

I was paying attention to one vendor last week, the person do run exportation of food, she said something that whenever clients pay her in dollars, she will withdraw the dollars and take it to Aboki for higher value, can u imagine the nonsense, BDC operators are the once causing the problem, with this move Dollars in/out can be properly track


One of the problems of Naira is that the print beyond the volume expected of them to do which the Edo state governor said some time ago, now no Matter the amount of dollars pump into the system the Naira hardly have effect, it is good for Naira to also go on scarcity, then people will pay more Dollar to secure the available Naira with this policy will can achieve it

More rubbish.

Earthquakes:


Lol because you are not abroad you are shouting better
Once it’s implemented people abroad will stop sending dollars and guess what??
You will know what better feels like with your poor economics skills

If they want to stop they should. They can't be funding black market and harming the economy and you'll see it as a good thing

BreconHills:


Which rubbish rate?

They sometimes have better rates than street. The spread or arbitrage between both rates is very small. They knew what they are doing when they allowed NGN to fall.

So...the bank rates for Forex is higher or at least at par with Aboki?
Ok. I can understand if you are a secondary school pupil.

We all know that people are hoarding USD that is why the rate keeps going up everyday.
For me, the solution is for the banks to start imposing exorbitant charges on the domiciliary accounts.
Imagine the banks charging 1% of total balance of a domiciliary account every month as a maintenance fee, many will be compelled to convert their dollars to naira.
$30billion idle is a lot of money .
Many in Nigeria don't care if the economy is destroyed for their selfish gains.

Macphenson:


Chaii!! No wonder they voted an incompetent and confused president like Buhari and Tinubu. Russian economy is self sufficient and produces almost everything they need, importing little or nothing, while Nigerian economy is the direct opposite importing almost everything it needs with little production.

Now Nigeria needs forex for its importation while Russia doesnt need forex for importation. Russia developed even its own payment system but Nigeria relies on swift payment system.

Both economies are totally different and there is no basis for comparison.

Olododo. When we teach them the truth in their ignorance, they say we are hated filled.

so whose faults is it ? Why are is Nigeria import driven economy ? This country got nothing working right from the military era and I'm impressed you know what you typed, so how is it Tinubu's fault

pocom16:


You can always do that ever since

No sir u can only withdraw naira from a domiciliary account when someone pays u the naira equivalent while u give the dollar

Inspirer1:

watch as it looses value while you're holding on to it.

Dollar will lose value against the Naira? I don’t even need to debate you since you said something like this.

Even if you’re a blind BAT follower, the most you can pray for is for stability if the exchange rate for at least a year, to allow the economy recover. Because people will definitely get used to this rate only if it remains stable.

I will save the link to this your reply and quote you once dollar is at 2k

Coldspice:


Since there is now a convergence of rates, I can now transfer USD to Naija and get Naira at the same rate with P2P.

So, give me one reason why I will send USD to one student and be waiting for Naira credit when I can do same with the banks at the same rate at the click of a single button.

The only reason is that you don't have dollar. When you do, you will always look for a higher deal.

You can only understand the game when you are part of the players

VanuatuWycombe:


No dollar is going to bank again for any politician to buy. All remittances coming in would be in Naira. Read the news well.

If someon sent you dollar from Europe where does it go to? End up in cbn vaults?

OlujobaSamuel:

I think that's the major fear, but I believe with this, CBN won't give banks fiat FX note again, meaning they won't even have the cash to give the politicians or big men

Cbn does not transact with commercial banks
Cbn does not have that facility rather the commercial banks.
If someon sent you money, the money goes straight into commercial banks
Cbn does not maintain account with foreign commercial banks all over the world.

.

infogeneral:
We all know that people are hoarding USD that is why the rate keeps going up everyday.
For me, the solution is for the banks to start imposing exorbitant charges on the domiciliary accounts.
Imagine the banks charging 1% of total balance of a domiciliary account every month as a maintenance fee, many will be compelled to convert their dollars to naira.
$30billion idle is a lot of money .
Many in Nigeria don't care if the economy is destroyed for their selfish gains.

Thirty billion is not a lot of money. Someone stole $sixty billion at once, just one person and you’re here telling me two hundred million Nigerians only have thirty billion dollars in their dom account. You are not mentally sound at all.