gaby:
Wont this create an avenue for looted and hitherto stashed dollars to find their way back into the system whitewashed and laundered through these bdc operators since they have been licensed to source for forex themselves..

gottliebglobal:

That is the problem with armchair Economists. The laws of supply and demand should take its course, but no, Government wants to put their hands in everything and control the exchange rate. Now they have seen that the CBN cannot continue to prop up the Naira against other world currencies. Next stop, devaluation.
It is now not a question of whether to devalue or not, it is WHEN?
I project within 28 days. Watch out for $1= Naira 350

Ngalaba1:
This is really going to be a problem for Importers... I imagine what they would be going through now...

nkowaputa:


In Aki's voice: God forbid. PMB promised us $1=#1

bookface:


Ironically, his goal of defending the Naira is actually causing it to depreciate.

The logic is simple, by restricting the amount of dollar transactions, you actually make the dollar more valuable. It is simple law of demand and supply. A currency with high demand and low supply will go up in value. No one in their right minds will give up their dollars in exchange for naira, knowing fully well how hard it is to source foreign exchange.

Dominiquez:
I am still wondering how we allowed a man who retired 30 years ago and never ran any business but rear cow to come back and become our leader.

Welcome to the cow paradise.

TeOwl:
Banks also need their dollars to pay MasterCard and Visa when we use our Debit cards outside Nigeria... and they also need it to pay people that get MoneyGram and WesternUnion remittances... it is not all their dollars that they can sell to BDC.... and because of how difficult it is now for banks to get dollars, they would not be willing to sell it indiscriminately to these BDC guys...

gottliebglobal:

I don't see anything different here from what I said.
We are saying the same thing.

igboboy3:
BUHARINOMICS
Day 1: Ban all Banks from accepting dollar deposits


Day 4: Instruct all Banks to accept dollar deposits

I don't envy Emefiele at the moment. He has been forced to do a good job with a bad instrument. Northerners run the parallel market racket in this country. No matter where you go, na a.b.o.k.i dey sell dollar. Unfortunately, it is near impossible to ban them.

Nobody will deposit dollars in the banks because you can't be sure of collecting it. Everybody will keep it at home. The innocent business men who need dollars to import can't fund their industry because the BDCs have been cut off.

Which "autonomous source" does the CBN want BDCs to get dollars from? Dasuki?

igboboy3:
BUHARINOMICS
Day 1: Ban all Banks from accepting dollar deposits


Day 4: Instruct all Banks to accept dollar deposits

I don't envy Emefiele at the moment. He has been forced to do a good job with a bad instrument. Northerners run the parallel market racket in this country. No matter where you go, na a.b.o.k.i dey sell dollar. Unfortunately, it is near impossible to ban them.

Nobody will deposit dollars in the banks because you can't be sure of collecting it. Everybody will keep it at home. The innocent business men who need dollars to import can't fund their industry because the BDCs have been cut off.

Which "autonomous source" does the CBN want BDCs to get dollars from? Dasuki?

busomma:
The banks are not helping matters as a matter of fact. I am in Washington DC as I write this. I withdrew $200 from bank of America @ the rate of N277.8/$ against official rate of N199/$.

realborn:
Very detailed and well written communique.

Summary:

- If the CBN continues to sell to the BDCs, there will be a strong strain on the foreign reserves
- Foreign reserves are dwindling due to low income.
- BDCs get the $ at 197 and sell at N250. Excess gain.
- BDCs should hustle for $ henceforth.
- BDCs should note that BigBrother is watching the hustle process.
- CBN will prioritize $ sales for Letters of Credit, import of petroleum products and other key payments
- we can now fund our domiciliary accounts directly.

Author - the CBN Governor with 9 lives!

It is well. How we wan do summer this year sef?

Atlantian:
Hahahahaha, The Cattle rearers are on Experimentation. Who ever voted a cattle-rearer to Aso Rock should not expect anything more than cow dung.

asdfjklhaha:
A

akin003:
I was gonna quote some one, but so her head won't swell


I'm not an economist or anything but based on what I think is obvious, there are multiple factors at play, albeit with its own cause and effect result.
While the official exchange rate has been pegged at #197( whether this is right or not, I can't say), BDC aren't selling at this rate, they make margins of #60/70 on a dollar which is robbery. CBN stopping sales to BDC means they have to sort elsewhere ('autonomous' I wonder where/who that is ), bottomline is, no free meal for the BDC as no #197 again. This might cause an increase on d black market but it won't last, majorly because banks would now trade dollars (for legitimate reasons only). Importers who the major people in need of the dollar would boycott entirely the BDC's meaning less demand for their own dollars.
Also those that have stockpiled dollars in vaults would likely bring them out in the short term, which would likely crash the price in the black market further.
I think the bottom line is this, the dollar isn't our currency, why the heck are we so keen on having it (as Nigerians in general) even as non importers.
Time would tell though, but I am fairly confident nobody as a one stop solution to fix this problem... I would take CBN govs adaptability and flexibility over those shouting devaluation as the only solution. As time goes on, the CBN would evolve better strategies to fix the loopholes generated by each policy while we pray for better oil prices in 2016.

Arian11:
my last hope to pay my f***king fees....why are these people like this .....would start making people travel to ghana just to change currency...mtcheww

bookface:


Ironically, his goal of defending the Naira is actually causing it to depreciate.

The logic is simple, by restricting the amount of dollar transactions, you actually make the dollar more valuable. It is simple law of demand and supply. A currency with high demand and low supply will go up in value. No one in their right minds will give up their dollars in exchange for naira, knowing fully well how hard it is to source foreign exchange.

Atlantian:
Hahahahaha, The Cattle rearers are on Experimentation. Who ever voted a cattle-rearer to Aso Rock should not expect anything more than cow dung.

akin003:
I was gonna quote some one, but so her head won't swell


I'm not an economist or anything but based on what I think is obvious, there are multiple factors at play, albeit with its own cause and effect result.
While the official exchange rate has been pegged at #197( whether this is right or not, I can't say), BDC aren't selling at this rate, they make margins of #60/70 on a dollar which is robbery. CBN stopping sales to BDC means they have to sort elsewhere ('autonomous' I wonder where/who that is ), bottomline is, no free meal for the BDC as no #197 again. This might cause an increase on d black market but it won't last, majorly because banks would now trade dollars (for legitimate reasons only). Importers who the major people in need of the dollar would boycott entirely the BDC's meaning less demand for their own dollars.
Also those that have stockpiled dollars in vaults would likely bring them out in the short term, which would likely crash the price in the black market further.
I think the bottom line is this, the dollar isn't our currency, why the heck are we so keen on having it (as Nigerians in general) even as non importers.
Time would tell though, but I am fairly confident nobody as a one stop solution to fix this problem... I would take CBN govs adaptability and flexibility over those shouting devaluation as the only solution. As time goes on, the CBN would evolve better strategies to fix the loopholes generated by each policy while we pray for better oil prices in 2016.

igboboy3:
BUHARINOMICS
Day 1: Ban all Banks from accepting dollar deposits


Day 4: Instruct all Banks to accept dollar deposits

I don't envy Emefiele at the moment. He has been forced to do a good job with a bad instrument. Northerners run the parallel market racket in this country. No matter where you go, na a.b.o.k.i dey sell dollar. Unfortunately, it is near impossible to ban them.

Nobody will deposit dollars in the banks because you can't be sure of collecting it. Everybody will keep it at home. The innocent business men who need dollars to import can't fund their industry because the BDCs have been cut off.

Which "autonomous source" does the CBN want BDCs to get dollars from? Dasuki?