BurukutuMallam:
Use your master card Visa abroad

Are you aware that you can't withdraw more than $300 daily, CBN is frustrating Nigerians abroad with this their too many policies

You can't pay for any international exam through their machant site because of this daily limit nonscence.meaning that once you don't have account abroad all this exams like ACCA, CISA is not for you. Iunless you look for someone that has.

So many policies all in the name of curbing money laundering yet the politicians still have their way.

They are just frustrating genuine business people struggling to make ends meet

This country tire me


If CBN is serious about money laundering they know what to do

Mastercard and visa that I mentioned are for petty expenses, if you are a student just ask your bank with relevant document to make transfer of dollar or pound equivalent through your account to the institution abroad, if you are an importer just ask your bank for form M with relevant document, if you are travelling abroad on holidays or official trip just fill the form A with relevant document you will be given $4000 PTA quarterly that is up to $16000 per annum

Such policies need to be put in place because the BDC have turn to be the number 1 source of money trafficking and laundry by government officials

The truth is CBN knows the right thing to do but APC has made so much promises and this is for saving face. We have no other option as a country but to let the demand and supply determine the value of our currency if we want to develop as a nation. It's not the value of our curency thay determine our worth but the level of production and goods and services. Cyprus pound is the highest value currency but nobody for once talk about Cyprus as a country. Lets learn from China who constanly devalue her currency to make goods cheaper for export.

MAURI:
@xandy84



Thank you. You just nailed it. This is the hard reality on ground. Coupled with the fact that the CBN recently reduced interest rates! The current CBN policy of susidizing the Naira is not sustainable.

teemy:
A really big move that would have the CBN finally in control of rates. Now the BDCs would be forced to make sales electronically close to the official N199 rate.

God bless yur generation for this statement. ....if im emefiele I will cancel bdc if yu neeed dollar go to bank and get it at govt rate not 199 to 260

menxer:
since everything still falls back on BVN, scrap the BDC and let everybody fall back on the bank and the proposed prepaid card, if that will save us the stress.

God bless yur generation for thhis statement I swr if anybody neeeds dollArs head to d damn bank...not one where bnk will sell 199 bdc will sell 260 effing economic saboteurs

Seun:
Yes, but when resources are misallocated we all suffer. I have an idea about the best way to support the naira given the current constraints.

and they are............??

A lot of people do not even understand the reason for BDCs in the first place.

BDCs were originally intended to be recipient of foreign currency (FX - Foreign Exchange) from the CBN so they can sell at at margin to the public for the SOLE aim of personal travel allowance (PTA). This was when there was very little means of making personal purchases outside the country with the Naira.

This initiative was basterdized by the BDCs because of very weak policies and monitoring by the CBN. BDCS rather than selling FX to individuals (to the max of $4000 per quarter) they now started selling to small(and sometimes big) businesses and illegal outfits.

FX for businesses, imports and other invisible payments(like school fees, medical treatment, payment for service, etc) are to be monitored by the CBN through the use of Form M and Form A obtained from the banks which require some form of documentation, but these businesses end up sourcing their FX from the BDCs thereby hiding their intent/purpose for such purchases.

Every Tom , Dick and Harry business started running to the BDCs for FX to import all manner of rubbish into the country (even things that could easily be sourced locally started getting imported because BDCs were funding them without recourse to any economic implications. A lot of these imported items end up being seized/burnt by the customs and the money wasted). With increasing demand for FX by these businesses and illegal outfits on BDCs, the margin started increasing too. And we are where we are today - NGN260 to $1. Dearth in local production because everything is imported. Improper documentation of business activities, loss of revenue to the government, and most importantly, untraceable funds that may have gone to terrorism.

Solution. We have gone beyond cash based transaction as most banks now offer cards that can be used on foreign platforms for making payments. The issuance of cash FX to customers for whatever reason should be stopped. BDCs should be phased out as there is no need for them again.

Benefits -
Enhanced monitoring of cash.
Only businesses with valid need for importation of allowed goods will be availed FX by the use of Form M.

This is a laudable initiative by the CBN and should be strictly monitored.

PS.
A lot of these BDC agents are approaching bankers and soliciting random customers' BVNs and corresponding names.

NOBODYY:
i'm not grounded in economics..but i wouldnt mind if someone can explain to me Why dollar is always used like a "king kong" currency in the world when pounds even has more value than it.. .

Anyone??

when the Kuwaiti dinar is double the value of the pounds sterling?

NOBODYY:
i'm not grounded in economics..but i wouldnt mind if someone can explain to me Why dollar is always used like a "king kong" currency in the world when pounds even has more value than it.. .

Anyone??

when the Kuwaiti dinar is double the value of the pounds sterling?

princeonx:

What'a Fhu.ckk is this one saying?

let me asssume that you are a Kid, u have to allow some sense to flow in you.

austinonyii:
let me asssume that you are a Kid, u have to allow some sense to flow in you.

Dude apply some sense if you have any! What is satanic about Dollars? Or you just open you trap to say rubish!! You said dollars is satanic time without number so, We are here to learn and I believe it's possible to also learn from a fo.ol so pls educate us.

mart2k:
D influence of USA on world economic is d reason y US dollar is used to transact business all over d world. Do u know that US dollar is not even among d first ten strongest currencies in d world? Great Britain Pound(GBP) is in distant 9th position while Kuwaiti pound came first at $3.2 to 1 kuwaiti pound. Goggle is ur friend dear

C'mon man.. i asked so as to be get explained to by anyone..
And that was wht you were doing till you added the bolded

NOBODYY:

C'mon man.. i asked so as to be get explained to by anyone..
And that was wht you were doing till you added the bolded

U know I cnt explain it in details here, dax y I referred u to goggle so u cn get details of it which u can in turn use to educate others who av no or little knowledge of d subject matter.

HAH:


Mastercard and visa that I mentioned are for petty expenses, if you are a student just ask your bank with relevant document to make transfer of dollar or pound equivalent through your account to the institution abroad, if you are an importer just ask your bank for form M with relevant document, if you are travelling abroad on holidays or official trip just fill the form A with relevant document you will be given up to $10000 PTA

Such policies need to be put in place because the BDC have turn to be the number 1 source of money trafficking and laundry by government officials

$10,000 PTA You definitely have no idea what you are communicating here and should just stop!

echelons:
A lot of people do not even understand the reason for BDCs in the first place.

BDCs were originally intended to be recipient of foreign currency (FX - Foreign Exchange) from the CBN so they can sell at at margin to the public for the SOLE aim of personal travel allowance (PTA). This was when there was very little means of making personal purchases outside the country with the Naira.

This initiative was basterdized by the BDCs because of very weak policies and monitoring by the CBN. BDCS rather than selling FX to individuals (to the max of $4000 per quarter) they now started selling to small(and sometimes big) businesses and illegal outfits.

FX for businesses, imports and other invisible payments(like school fees, medical treatment, payment for service, etc) are to be monitored by the CBN through the use of Form M and Form A obtained from the banks which require some form of documentation, but these businesses end up sourcing their FX from the BDCs thereby hiding their intent/purpose for such purchases.

Every Tom , Dick and Harry business started running to the BDCs for FX to import all manner of rubbish into the country (even things that could easily be sourced locally started getting imported because BDCs were funding them without recourse to any economic implications. A lot of these imported items end up being seized/burnt by the customs and the money wasted). With increasing demand for FX by these businesses and illegal outfits on BDCs, the margin started increasing too. And we are where we are today - NGN260 to $1. Dearth in local production because everything is imported. Improper documentation of business activities, loss of revenue to the government, and most importantly, untraceable funds that may have gone to terrorism.

Solution. We have gone beyond cash based transaction as most banks now offer cards that can be used on foreign platforms for making payments. The issuance of cash FX to customers for whatever reason should be stopped. BDCs should be phased out as there is no need for them again.

Benefits -
Enhanced monitoring of cash.
Only businesses with valid need for importation of allowed goods will be availed FX by the use of Form M.

This is a laudable initiative by the CBN and should be strictly monitored.

PS.
A lot of these BDC agents are approaching bankers and soliciting random customers' BVNs and corresponding names.

The problem has never been with these policies but with the practitioners, one of the key reasons anything hardly works in Nigeria is because Nigerians always creatively devise the means to circumvent a good policy.
All CBN need no is to catch a couple of scapegoats (via investigating a couple of BVN purchasing forex from the BDCs), make them lose their deposits, throw them in jail and everybody gets the message.

The banks will also be crooked or are already crooked in the sale of forex, my application (backed with form A) for mortgage payment is in its 4th week with no end in sight. Why should mortgage payment be rocket science after submitting all the mortgage documents with some sensitive information! First 3 weeks has been stories of no forex, what are we supposed to do and why should legitimate transactions suffer due to bad supervision and management of the forex policy?

I wish the government well and pray for them to succeed but I want to be alive to reap the fruits of my prayers and wishes. Tossing us around is not good for our health.

Papertrail11:



God bless yur generation for this statement. ....if im emefiele I will cancel bdc if yu neeed dollar go to bank and get it at govt rate not 199 to 260

Your head dey there my broda. Let the banks handle it completely. Since these guys have encouraged capital flight out of the country they might as well be phased out once and for all.

igbonla:


$10,000 PTA You definitely have no idea what you are communicating here and should just stop!

I made a mistake, the last time I went on business travel we got $10000 as BTA for me and my partner that was why I said $10000 that is $5000 for each of us, . Every person is entitle to $5000 quarterly and $4000 PTA quarterly too, that means every person is entitle to $20000 BTA per annum and $16000 PTA per annum

teemy:
A really big move that would have the CBN finally in control of rates. Now the BDCs would be forced to make sales electronically close to the official N199 rate.

The Northern Elites won't agree, Buhari inclusive

Who is that niccur that says Nigeria should devalue her currency because china is doing it. Do you even know the meaning of devaluation? In simple terms, it means your naira is weaker against foreign currency. For an Import dependent nation like Nigeria, devaluation is bad for the populace because it means your money can no longerbuy more goods as it formely does in foreign countries. Devaluation may be good for china because they are export dependent. People can come with their dollars and buy more goods but not in Nigeria. Meanwhile Devaluation hurts Foreign Investors that have already Invested in the country. It only favours potential investors not the current investors in the country. Stop saying what you do not know!

@echelons

Thanks for your enlightening post.

A colleague asked me few days ago if a BDC would not be doing anything illegal if it sources for FX (both onshore and offshore) for sales to local reputable businesses (e.g. manufacturing firms etc) who are unable to get adequate FX through the CBN window for importation of raw materials and goods.

What do you think? I am not very conversant with this area.

Looping:Activa, ifyan, teemy, ceaser, xandy84, Kashif, Boss13, Chukzyfcb

ShowYourCertificate:
The Northern Elites won't agree, Buhari inclusive

It is either that or watch the economy plunging downwarn. Believe me it won't be northern elites he would have to deal with when the recession reaches stage 9.

I have a friend that is a BDC mallam but I doubt if he would ask me for BVN if I want to make dollar purchases. Non regulation would aid money laundering and if they do not want to follow rules then scrapping them all together would be ok as it would make the dollar rate move to proper rate of N199. Remember that they are the ones that keep hiking the rates.

40manlappy:
@echelons

Thanks for your enlightening post.

A colleague asked me few days ago if a BDC would not be doing anything illegal if it sources for FX (both onshore and offshore) for sales to local reputable businesses (e.g. manufacturing firms etc) who are unable to get adequate FX through the CBN window for importation of raw materials and goods.

What do you think? I am not very conversant with this area.

Looping:Activa, ifyan, teemy, ceaser, xandy84, Kashif, Boss13, Chukzyfcb

Well I believe it will be Illegal to source for funds outside cbn. Because CBN regulates the BDCs and administer policies to them, so they are just a tool in the hands of CBN. Meanwhile if u remember after elections, CBN found out BDCs were sourcing funds from our fraudulent money launderers politicians, so what CBN did was to reduce its amount sold to BDCs weekly. So it can cut the wings of the BDCs but it had negative effect because dollar prices rose! U can think of BDCs as our OIL marketers and CBN as NNPC....well that's my opinion, hopefully another person will give his opinion too

igbonla:


The problem has never been with these policies but with the practitioners, one of the key reasons anything hardly works in Nigeria is because Nigerians always creatively devise the means to circumvent a good policy.
All CBN need no is to catch a couple of scapegoats (via investigating a couple of BVN purchasing forex from the BDCs), make them lose their deposits, throw them in jail and everybody gets the message.

The banks will also be crooked or are already crooked in the sale of forex, my application (backed with form A) for mortgage payment is in its 4th week with no end in sight. Why should mortgage payment be rocket science after submitting all the mortgage documents with some sensitive information! First 3 weeks has been stories of no forex, what are we supposed to do and why should legitimate transactions suffer due to bad supervision and management of the forex policy?

I wish the government well and pray for them to succeed but I want to be alive to reap the fruits of my prayers and wishes. Tossing us around is not good for our health.

Finally someone with an experience on this issue confirms what I already know about sourcing FX through banks and government. The Form A and M are rather a lengthy process. It takes weeks, if not months. And you are never sure when the FX will be ready. The banks are not very helpful either.

If the banks can sell electronic dollars to settle oversea invoices that would be great. Most of the business do not need cash dollars here. They all want to settle oversea company for services or goods. The banks can help them make remittances in dollars in exchange for Naira.

Right now, it's very difficult for me to get both e-dollars and cash dollars. A few weeks ago, some BDC helped me source e-dollars from SA into my dorm-account. Not cashable, only available for transfer to foreign company. That was helpful. But now at the rate of 266 for 1e-dollar... That's rather difficult for any import business. It definitely means cost of goods will rise.

40manlappy:
@echelons

Thanks for your enlightening post.

A colleague asked me few days ago if a BDC would not be doing anything illegal if it sources for FX (both onshore and offshore) for sales to local reputable businesses (e.g. manufacturing firms etc) who are unable to get adequate FX through the CBN window for importation of raw materials and goods.

What do you think? I am not very conversant with this area.

Looping:Activa, ifyan, teemy, ceaser, xandy84, Kashif, Boss13, Chukzyfcb

Now the purpose of regulating dollar sales by regulating the BDCs would be diminished if that happens. It is no big deal if it is between friends or associates but when done on a commercial level it must be done by registered persons who have to provide track records of every sale.

Note that the regulation is a means of limiting money laundering where money could be sold here and resurfaces in another place as another currency. The end result would be such foreign transactions would be illegal once they stage conversion over here.

BurukutuMallam:
CBN is as confused as to this present administration.
Why are you frustrating the BDC operatiors??

If you are tired of given them dollar, scrapt the system and give them back their deposit and then make use of the bank then

Why this one week one policy nonscence yet Naira still dey fall like mango in raining season.

Confuse set of people
For those shouting BDC this and that, wait until no BDC then bank go show una their own.Frustration upon Frustration sotee you go cry for them to come back.
Money laundering ko.

They know who they squander Naija money they are busy chasing shadow

Mtcheew.

My thoughts! They use each BDC's N35M deposit and won't tell the public that. Criminals!

HAH:


I made a mistake, the last time I went on business travel we got $10000 as BTA for me and my partner that was why I said $10000 that is $5000 for each of us, . Every person is entitle to $5000 quarterly and $4000 PTA quarterly too, that means every person is entitle to $20000 BTA per annum and $16000 PTA per annum

..entitled.

Papertrail11:




God bless yur generation for thhis statement I swr if anybody neeeds dollArs head to d damn bank...not one where bnk will sell 199 bdc will sell 260 effing economic saboteurs

How often and much do d banks sell to u? They wanna sell to d BDCs--more money.

teemy:


Now the purpose of regulating dollar sales by regulating the BDCs would be diminished if that happens. It is no big deal if it is between friends or associates but when done on a commercial level it must be done by registered persons who have to provide track records of every sale.

Note that the regulation is a means of limiting money laundering where money could be sold here and resurfaces in another place as another currency. The end result would be such foreign transactions would be illegal once they stage conversion over here.

I love this

kosplateau:

My thoughts! They use each BDC's N35M deposit and won't tell the public that. Criminals!

Br9 it N30m not N35m.

ifyan:


I love this

More

teemy:

I do back chartey up on this. Online use of my card online is always in the 230/240 region and that was before this week. The banks have been shooting up their rates because the BDCs do not run at the CBN rates and since most individual purchasers use them they as well feel 'why not'.

Forex works with the economics law of demand and supply. Since the higher demand is on the BDCs, they can keep upping the price as long as they are the men of the Dark Market. illegitimate transactors find them as a source of ready launderable cash as they do not want their monies to pass through the banking system where it would be recorded. Once the CBN can control the Black Market by making it illegal once and for all and force all forex transactions into the banking system all the illegal transactions would fall and less demand for the dollars would give way to lower rates.

Banks have a lot to lose if they mess up

@igbonla

The problem has never been with these policies but with the practitioners, one of the key reasons anything hardly works in Nigeria is because Nigerians always creatively devise the means to circumvent a good policy.
All CBN need no is to catch a couple of scapegoats (via investigating a couple of BVN purchasing forex from the BDCs), make them lose their deposits, throw them in jail and everybody gets the message.

Nigeria is a “net” import country, even with our abundant crude, we are not in the position to meet local need due to the fact that we hardly have any operational refinery. Meaning that we incur huge costs associated with export / import crude and refined products that are paid in USD. Which in turn means that to acquire the USD (forex) needed to fund this process, Nigeria has to sell Naira to the market, and by so doing flooding the exchange market with more Naira in exchange for USD.
Simple law of demand and supply. Putting more pressure on the Naira. (Just to mention one simple example)

I as much as I agree with your point on the prosecution of offenders, there are also major flaws in the system and policies. And just catching and sentencing a few people to jail terms is rather simplistic and symbolic.

Further, for the Nigerian government to continue to subsidize imported finished oil products and at the same time subsidize the Naira are draconian tasks that cannot be sustained considering the huge drop in the price of crude which accounts for 70-75% of the government’ revenue.

princeonx:

Dude apply some sense if you have any! What is satanic about Dollars? Or you just open you trap to say rubish!! You said dollars is satanic time without number so, We are here to learn and I believe it's possible to also learn from a fo.ol so pls educate us.

.....an Idiot you are thou! But am gonna teach you shaaa

tojal barn on burue de change and all open market trading on foregn currency will not onjy stop d crash of naira but will allso stop politicians from hiding their stollen monies in foreign currencies.all foreign currency requirements should go through CBN.ds will control fraud and drug money.illegal foreign currency holdings faces ,ten yrs jail or more.I know politicians will oppose ds because of their greedy steeling

austinonyii:
.....an Idiot you are thou! But am gonna teach you shaaa

STFU fo.ol. Don't make silly noises and threat of what you can't do in this your miserable life and the next!! Simply tell us how dollars is satanic period.