As at yesterday, the dollar sold for N198.04 at the interbank and N196.95 at the CBN. A trader explained that the CBN sanctions on round tripping had made it unattractive for banks “because the risks are just too high. If anyone gets caught, apart from the trader getting punished, the bank also stands to lose its foreign exchange licence, and that is too high a risk to take. But that does not mean that a couple of people would not still do it.

989900:


You will be charged at 'bank rate' somewhere between N215-N219/$ depending on your bank.

onyxo76:
thanks for this...so what exactly is this CBN rate then , i do western union exchange at 196 whenever i get money sent from abroad.

SirDorianGray:


Na their way bro

zik4ever:
Can anyone clarify what rate the Bank uses for mastercard debit cash withdrawals abroad? My Bank (name withheld) seems to be charging same rate as blackmarket when you withdraw forex overseas!

989900:

check page 3

Chiaka:
What about the promises of 1 USD = 1 Naira??

Stelvin101:
One thing I have come to understand about Nigeria importers is that they are very heartless and wicked, especially the Igbos, that's why am praying an Igbo man should never rule this country (no offence to Igbos, it just my opinion). Now this is my observation, 90% of imported things in Nigeria (electronics and gadgets, household equipment, building materials, office equipment, most clothing, so many things) are imported from China and if I remember correctly the Chinese govt earlier this year part ways with using Dollars as her primary trading currency, instead they now use Chinese yen so to build purchasing power of the yen, though use of dollars in Chinese trade is still very much welcome. so how does dollars rate to Naira concern importers not petroleum importers mind u, these people milk Nigerians at any giving opportunity, they will tag it dat dollars is now high and whereas most of them don't even use dollars in their trade, what they simply do is travel down there and do a wired transaction. I have a friend whose dad import A.C from China, after he analyze everything to me it turns out importers can still make millions if they even sell an A.C (2 horse power for 30k) and a 32 inches Plasma for 20k but greed won't allow an igbo man do the right thing. God save this country cause the problem is just too much for one president to handle

Stelvin101:
One thing I have come to understand about Nigeria importers is that they are very heartless and wicked, especially the Igbos, that's why am praying an Igbo man should never rule this country (no offence to Igbos, it just my opinion). Now this is my observation, 90% of imported things in Nigeria (electronics and gadgets, household equipment, building materials, office equipment, most clothing, so many things) are imported from China and if I remember correctly the Chinese govt earlier this year part ways with using Dollars as her primary trading currency, instead they now use Chinese yen so to build purchasing power of the yen, though use of dollars in Chinese trade is still very much welcome. so how does dollars rate to Naira concern importers not petroleum importers mind u, these people milk Nigerians at any giving opportunity, they will tag it dat dollars is now high and whereas most of them don't even use dollars in their trade, what they simply do is travel down there and do a wired transaction. I have a friend whose dad import A.C from China, after he analyze everything to me it turns out importers can still make millions if they even sell an A.C (2 horse power for 30k) and a 32 inches Plasma for 20k but greed won't allow an igbo man do the right thing. God save this country cause the problem is just too much for one president to handle

ABAKA72:
Ok, so you are one of those people that vent their frustration on the Igbos. Let me ask you mr Igbo hater, did the Igbos stop you from importation? since Igbo are killing you and you are complaining, why dont you go to China and import instead of comming to cry your stup*id cry against an entire hard working tribe or better still boycutt the igbo traders and buy from your people. I hate it when lazy tribalistic bigots spew rubbish in public forums.

Franchise21:
We re in for trouble

icemann:
The budget was calculated at $60 for oil but currently oil is trading at $ 57 a barrel. It's going to get lower than $57 when Iran sanctions are lifted. It is estimated that oil would drop to around $40 to $45 range by end of this year when Iran's oil hit the market. So by the end of the year i estimate 300 to a $1. SO CONVERT YOUR SAVING TO DOLLARS. Exchange rate has never gone down so you will not lose money.

Look at it this way, imagine an individual earning 100K and later it drops to 60k(40% drop). First the savings gets spent(excess crude account). Cuts would be made on luxury items like Friday night Moet (private jet). Next siblings and girl friend allowance( fuel subsidy) and the list goes on till equilibrium is reached.

Less earnings means less Dollars in circulation(since Nigeria mooches off the govt earnings). So the demand for dollars is high aka high exchange rate. Its more complex than what i explained but its gives you an idea.

To cushion that effect CBN would raise interest rates to around 20% to 30%. This is to cushion inflation and attract foreign bonds

Alternative approach which is riskier is to print money like the US did in 2008. Not a good advice but if it clicks Nigeria would survive this recession.

gemale:


WOW!!! ur simplificatn was superb tho i didnt rili undrstnd d last part.

Xano:

It is very risky to increase interest rates as you suggested, due to its effect on loans and liquidity of the bank institutions. Banks don't want much liabilities, as such, decline on some loan requests.
Manufacturers and importers will feel the pinch, the end consumers will feel their pockets. Vacations will be expensive, leading to increase in tourist sites around the country because of the exchange rate.

Stelvin101:
One thing I have come to understand about Nigeria importers is that they are very heartless and wicked, especially the Igbos, that's why am praying an Igbo man should never rule this country (no offence to Igbos, it just my opinion). Now this is my observation, 90% of imported things in Nigeria (electronics and gadgets, household equipment, building materials, office equipment, most clothing, so many things) are imported from China and if I remember correctly the Chinese govt earlier this year part ways with using Dollars as her primary trading currency, instead they now use Chinese yen so to build purchasing power of the yen, though use of dollars in Chinese trade is still very much welcome. so how does dollars rate to Naira concern importers not petroleum importers mind u, these people milk Nigerians at any giving opportunity, they will tag it dat dollars is now high and whereas most of them don't even use dollars in their trade, what they simply do is travel down there and do a wired transaction. I have a friend whose dad import A.C from China, after he analyze everything to me it turns out importers can still make millions if they even sell an A.C (2 horse power for 30k) and a 32 inches Plasma for 20k but greed won't allow an igbo man do the right thing. God save this country cause the problem is just too much for one president to handle

Stelvin101:
One thing I have come to understand about Nigeria importers is that they are very heartless and wicked, especially the Igbos, that's why am praying an Igbo man should never rule this country (no offence to Igbos, it just my opinion). Now this is my observation, 90% of imported things in Nigeria (electronics and gadgets, household equipment, building materials, office equipment, most clothing, so many things) are imported from China and if I remember correctly the Chinese govt earlier this year part ways with using Dollars as her primary trading currency, instead they now use Chinese yen so to build purchasing power of the yen, though use of dollars in Chinese trade is still very much welcome. so how does dollars rate to Naira concern importers not petroleum importers mind u, these people milk Nigerians at any giving opportunity, they will tag it dat dollars is now high and whereas most of them don't even use dollars in their trade, what they simply do is travel down there and do a wired transaction. I have a friend whose dad import A.C from China, after he analyze everything to me it turns out importers can still make millions if they even sell an A.C (2 horse power for 30k) and a 32 inches Plasma for 20k but greed won't allow an igbo man do the right thing. God save this country cause the problem is just too much for one president to handle

socialmediaman:


Dollar has been rising against other currencies too, but in our own case we could not save within past 6 years, not that we invested the money in the economy to build infrastructure and create jobs to boost productivity

http://www.ft.com/cms/s/0/d33c5c6e-24ab-11e5-bd83-71cb60e8f08c.html#axzz3fweTo2jz

seedsower:
But our foreign reserve is increasing(from 29.0 to 29.9) is that supposed to downslide our naira. Please somebody should explain this whole grammar in a very elementary terms.

BizBayo:


There is difference between interbank exchange rate and the parallel market.

Interbank rate stands between 196 and 199. This is the official exchange rate.

The parallel markets are the bureau de change, all these hausas into exchange business. Don't mind those saying rubbish. The past administration has spoiled a lot of things that are just been uncovered to us now.

We should not be bothered by the parallel market.

zik4ever:

Bros, thanks but why shouldnt we bother about the parallel market? Even my Bank is charging virtually parallel market rate for mastercard withdrawal overseas! I am not an economist, but some persons have argued that the parallel market reflects the true value of the Naira than the official rates.

BizBayo:


Try to ask your bank how much they've been charging. I believe it should be around 218 - 220.

The banks are only been making over what they are supposed to be making on dollar naira exchange. I guess it is all what the banks resulted to, surely a meeting has been held resulting to that.

Lets assume a bank decided to break away by making its own rate 210, the rest would follow suit one after the other.

MixedMan:
Shey na like this we go dey Dey

Buhari and APC Just Worsened The Economy! Chaii! There is God o!

royale442:
Nigeria will be better.

Vikkie14:
Did Mr President even pass Economic in School at all??

Is it until Naira hit #300 a Dollar before he sees the need for Ministers??

Adminisher:


PDP ruined Nigeria and you have not seen anything yet. When the hardship starts you are going to stop lying to your self and on social media and cry out in anger against the corrupt party you have been supporting. No worry , Tory det still come.