Nairadays:
The banks are now permitted to source for the greenback themselves, not like before where they were offered via the DAS (Dutch Auction System) of the CBN.

When they source from the CBN, they're bound by the law to charge at that rate or slightly higher than the rate at which CBN sold it to them, but now CBN stopped the auction system partly due to the fact that our foreign reserves have been depleting since the fall in crude prices, and so therefore banks are mandated to source for it themselves. They're not bound by the CBN official rates trading anymore but blackmarket rates.

It's so painful, heard from my colleagues that one certain bank was even charging NGN398 to $1.

May God deliver us from the mercy of these banks.

ikombe:
Apc government and corruption be like beans and bread. They work hand in hand

Nairadays:


Firefire, am not an economist.

Please see my edit.

Should we say the market has been deregulated. I don't know.

Am just coming from the banks around my working place, asking them can i send money outside Nigeria via Western Union, since WU will mostly charge NGN225 to $1, at least it will help. But 2 of the banks says they've put sending out money via western union on hold. Mtcheww. Only 1 bank says it allows Moneygram only if i have an account with them.

scachy:
They are not supposed to charge at parallel mkt rate. But Nigeria banks are shadow criminals. They also chare higher than the official rate when u send via western union or moneygram.

VANENON:
Please pardon my lack of understanding but I had assumed the banks should charge at the officially CBN rate.
I would want someone to enlighten me on why bank are allowed to make abnormal profit at the expense of the masses.
Why are the banks not charging at CBN rates?
I used my naira master card last month for an online transaction and got charged virtually same price as black market and couldn't understand the rationale for this.
Please someone who truly understands how this works and the basis for this policy, if its legal should help throw some light on this.

VANENON:
Please pardon my lack of understanding but I had assumed the banks should charge at the officially CBN rate.
I would want someone to enlighten me on why bank are allowed to make abnormal profit at the expense of the masses.
Why are the banks not charging at CBN rates?
I used my naira master card last month for an online transaction and got charged virtually same price as black market and couldn't understand the rationale for this.
Please someone who truly understands how this works and the basis for this policy, if its legal should help throw some light on this.

Jediel1:
Them suppose na. Especially for students schooling outside naija

scachy:
They are not supposed to charge at parallel mkt rate. But Nigeria banks are shadow criminals. They also chare higher than the official rate when u send via western union or moneygram.

Nairadays:


Are you kidding? So they still charge higher via these mediums?

Chai Nigerian Banks na wa ooo...

CaptainRahl:
if u r an int'l student, u can pay ur sch fees using form A at cbn rates. however, t & c applies!

9jatatafo:


Can someone send out money through moneygram and westernunion from Nigeria?
Nigerian banks are thieves, if someone wants to collect western union in Nigeria, they pay in the official rate then why charge black market rate when transferring out?

Firefire:


And the 'Greenback' allows that margin ?


N197/$ => N360/$, 83%

That Greenback must be fraudulent.

9jatatafo:


Can someone send out money through moneygram and westernunion from Nigeria?
Nigerian banks are thieves, if someone wants to collect western union in Nigeria, they pay in the official rate then why charge black market rate when transferring out?

Firefire:


And the 'Greenback' allows that margin ?


N197/$ => N360/$, 83%

That Greenback must be fraudulent.

Nairadays:


Firefire, am not an economist.

Please see my edit.

Should we say the market has been deregulated. I don't know.

Am just coming from the banks around my working place, asking them can i send money outside Nigeria via Western Union, since WU will mostly charge NGN225 to $1, at least it will help. But 2 of the banks says they've put sending out money via western union on hold. Mtcheww. Only 1 bank says it allows Moneygram only if i have an account with them.

Nairadays:
The banks are now permitted to source for the greenback themselves, not like before where they were offered via the DAS (Dutch Auction System) of the CBN.

When they source from the CBN, they're bound by the law to charge at that rate or slightly higher than the rate at which CBN sold it to them, but now CBN stopped the auction system partly due to the fact that our foreign reserves have been depleting since the fall in crude prices, and so therefore banks are mandated to source for it themselves. They're not bound by the CBN official rates trading anymore but blackmarket rates.

It's so painful, heard from my colleagues that one certain bank was even charging NGN398 to $1.

May God deliver us from the mercy of these banks.

scachy:


U can send out money through moneygram and western union. But it's never at official rate. #204,700 for $738.(as at today)
Though some banks don't do it.the few that does ll stress ur life tire.

9jatatafo:


That is outrageous brodaly

persius555:
You just spoke my thought. The banks charge official rate when you recieve money from abroad and charge you double when you make payments. Some ignorants say the banks source money from abroad and parallel markets, i laugh fulani... Some days ago, there was a headline that nigerians repatriated $21 billions in 2015. This is the same forex that the banks sell to the locals at almost twice official rate. They do not source their forex abroad or black market. The twosources are CBN and foreign repatriations. Take a look at the volume dollars that all western unions transact on a daily basis and you will realise how much profit the banks are making effortlessly.

gabicon:
The problem is that banks are not making as much money as they did a year ago due to the downturn of the economy. So how do they pay their bills n salaries? they get dollars from CBN at Offical rates and sell at the Offical rate according to the books, but instead they sell at parallel market price the differential is what they use to supplement bills likes salaries and utilities. Are CBN aware of this development? Yes I believe so, but they choose to be silent because the books says Offical price and secondly they may have to choose between the present arrangement and the banks underperforming which will lead to flood of sack letters. You can get d dollar at Offical rate if you are bringing in stuffs that will enhance export like farm implement etc.