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Nairaland Forum / Nairaland / General / Business / Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar (39022 Views)
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Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by brunofarad(m): 3:22pm On Jan 21, 2016 |
Long thing 1 Like |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by Akby(m): 3:23pm On Jan 21, 2016 |
I weep... 1 Like |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by viktor01(m): 3:24pm On Jan 21, 2016 |
Sorry about that OP but here in Nigeria, 1USD = 1NAIRA Since our new President assumed power. Which country did you say you are from again? 10 Likes 2 Shares |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by saleskara: 3:24pm On Jan 21, 2016 |
This could be due to the principle of seeking undue advantage of the inability of teh CBN to regulate how the dollar is managed by the banks and other institutions that buy dollar at the official rate. The Central Bank needs to start monitoring the utilization of the forex allocated and publish weekly the list of all beneficiary banks and businesses. This article says more about steps to fix the dollar to naira valuation http://therenaissanceng.com/naira-devaluation-emefieles-battle-to-save-nigerian-economy Yet Emefiele devalued the currency twice in the twilight of Goodluck Jonathan’s administration. Then I decided to look into the merits and demerits of the approach by the CBN governor in keeping with the wishes of PMB that Naira should be strong. How does he go about taming the hawks running after the chick (Naira)? No doubt some would gain from a devaluation of the Naira against the USD while others would lose. Why devalue the Naira? The most common arguments are the forces of demand and supply. Many authors claim that the supply of the dollar is too low due to crude oil prices and our ability to build our foreign reserves when the crude oil prices were as high as $140. So the story keeps going on around the supply side of the equation with little or no consideration for the demand side. So what is happening on the demand side? The demand for US dollar in Nigeria is putting pressure on the Naira and our foreign reserves, thereby depleting the reserves faster than we are able to replenish it. So the CBN decided to reduce its supply of forex to the market by removing some items from the list of products eligible for funding through the official forex window also known as Wholesale Dutch Auction System (WDAS). Immediately this was announced the importers shifted to the Bureau De Change (BDC) for their dollar demand. So the demand advocates want to survive by relying on the BDCs and the BDCs saw a surge in demand with little supply causing the first major pressure that led to Naira selling at above N230 and the upward trend for dollar demand continues. One interesting point in this period was that the demand started to drop as the appetite for imported goods started to drop but with minimal effect on the foreign reserves since the crude oil prices also kept dropping. So CBN acted the second time by preventing banks from accepting dollar deposits, this resulted in the next supply shock and uncertainty in the parallel forex market pushing the USD to Naira rate to approximately N270. Does this mean that the demand for dollar would keep going up? The most recent action by the CBN in January 2016 made the most recent jump to N300. My answer is Yes, every pronouncement by the CBN has only succeeded in fueling an increase in the demand of the dollar at the parallel market. The reason for the decline is the anticipated official devaluation; every announcement shows the CBN is desperate to curb the demand. This action is a signal to rent seekers, prospective hoarders who feel they may need dollar anytime soon and currency speculators to continue to convert all spare naira cash to US dollars. If I bought dollar when it was N220 and sell now that is N300 I don’t need to import to make a margin of N80 or 36% through the devaluation of the Naira at the Black Market. Who is CBN selling the scarce dollars to? Why do some business men have a right to buy dollar at N197 (dollar subsidy) while every other business buys at N300. In recent times, many companies who buy dollar at official rate come to the market to claim that dollar is affecting them so they calculate sales based on N300. CBN cannot control what the recipients of dollars at N197 do when the product gets to Nigeria. So the artificial demand for dollar and the traditional forex round tripping (where people buy at official rate, get some extra dollars at the official rate and sell the extra to the parallel market for profit) CBN needs to introduce transparency by providing the details of all beneficiaries of the sale of USD N197 since May 29, 2015 for public scrutiny. This should show details of the purpose of the transactions. What is happening at the supply side? http://therenaissanceng.com/naira-devaluation-emefieles-battle-to-save-nigerian-economy wealthprod: 13 Likes 5 Shares |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by anonimi: 3:26pm On Jan 21, 2016 |
Because Buhari has allowed them to CORRUPTLY enrich themselves at the expense of the people and the economy. That is what a dumb, daft and dull Confused One does. www.nairaland.com/attachments/3119840_3086701funnyjpeg9aeb2b686522cfbdad09180eab0db45e_jpeg77e052703f81538f8ab4b27ced5dfdc0 6 Likes 1 Share |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by Nobody: 3:26pm On Jan 21, 2016 |
u think the CBN doesnt know this? |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by Nobody: 3:27pm On Jan 21, 2016 |
New naira notes with redecimalisation as objective 1 Like |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by anonimi: 3:28pm On Jan 21, 2016 |
viktor01: www.nairaland.com/attachments/2403078_buharinairatodollarpromise_jpeg536f4a3346e6a689940c6ceb025c51a7 2 Likes 2 Shares |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by grandstar(m): 3:28pm On Jan 21, 2016 |
wealthprod: Its because the CBN refuses to devalue the currency at the official market. This has led to excess demand at the official market which obviously can't be met and the unmet demand is now going to the parallel whiich has led to the massive divergence. The CBN does not supply the banks sufficient dollars so the banks depend on the parallel market for funds. Blame the CBN. Soludo and Sanusi have both condemned the statist policies 1 Like 1 Share |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by kings09(m): 3:29pm On Jan 21, 2016 |
Na today? Nig has no system in place. If na 2 collect stamp duty or anythn dat reap off poor Nigerians, they will implement fast fast wealthprod: 2 Likes 1 Share |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by deebsman1(m): 3:30pm On Jan 21, 2016 |
the 1 that is paining me the most na that 50 naira bank stamp or something........exploitation of d citizenry everywhere |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by ebenco2000: 3:30pm On Jan 21, 2016 |
Bevista: this is correct , banks dont use CBN dollars to settle debit card payments, they source for that at the interbank market which is also very high now. Banks are not to be blamed. |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by airsaylongcon: 3:31pm On Jan 21, 2016 |
Really? Banks sell at N301? And the drunk Director at CBN Mr Tule was blasting that Channels presenter that she (and other journalist) should stop saying the exchange is N300 (at the time) that the only exchange rate is the official rate 4 Likes |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by grandstar(m): 3:32pm On Jan 21, 2016 |
saleskara: The answer is a devaluation at the official rate. The government has refused to devalue and that is what is causing the excess demand of 1.5bn a week. Soludo and Sanusi have both condemned the doillar reestrictions. That was why JP Morgan delisted Nigeria. The economy is in the hands of economics amateurs |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by mployer(m): 3:34pm On Jan 21, 2016 |
The banks don't get their fx from cbn, so cbn has no say in their exchange rate. |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by Nobody: 3:34pm On Jan 21, 2016 |
familierl:won't they make profits? |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by omolola15(m): 3:35pm On Jan 21, 2016 |
veraponpo: I was charged close to 302 pet usd on Monday. I had to pay for a software online. I payed through my PayPal account. Almost 12 hours later I got an alert from first bank. When I saw how much that was deducted from my account, I had to use my calculator so as to be sure it's not my eyes and brain that was deceiving me. The op is absolutely right with his write up. Something needs to be done. 4 Likes |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by bedfordng(m): 3:35pm On Jan 21, 2016 |
if the banks are not corrupt, why would they charge you high exchange rate but when there is refund, they give you official cbn rate. Immagine charging over 300 when making payment while they refund you 199 if there is any refund to customer. That is broad day light robery. 1 Like |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by wink2015(m): 3:35pm On Jan 21, 2016 |
[size=18pt]What is the current exchange rate of the British Pound to the Nigerian Naira?[/size] |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by mohlanforex: 3:36pm On Jan 21, 2016 |
Be Inform, Gtbank Master Card Charge Me 198 To Dollar. Try Gtbank Naira Master Card And Give Us Feedback. I Use It To Fund My Forex And Binary Account. 2 Likes |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by excelbeing099(m): 3:36pm On Jan 21, 2016 |
I doubt if Nigeria can overcome corruption |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by saleskara: 3:36pm On Jan 21, 2016 |
this is a paper that recommends steps the CBN shoudl take to avoid pain on the masses but ensure order in the forex market by introducing the inter bank forex market were the prices are deregulated http://therenaissanceng.com/naira-devaluation-emefieles-battle-to-save-nigerian-economy the steps are below CBN needs to unlock the supply side of the foreign currency and this may happen in many ways. My recommended approach is the creation of a multi-tier foreign exchange market. Retain the existing official exchange rate for only special government projects and place a limit of the availability based on authorized budget needs for foreign debt servicing ad payment for existing dollar denominated transactions and funding of the petroleum imports (excluding diesel and kerosene). The reason for keeping this official rate is to control the price of imported petrol which usually leads to inflation whenever a price increase in announced. Create the Interbank foreign exchange market with autonomous suppliers of the foreign currency. This would allow the forces of demand and supply determine the price of the Naira at an unregulated market. The CBN cannot continue to defend the Naira because the US dollar has grown stronger against many international currencies such as the Great British Pound (GBP) that has lost over 4% of its value in January 2016 alone. Boost local production capacity through power generation, establishment of new refineries reducing our need for importation of refined products and fertilizers, human capacity to reduce outflows due to need to seek medical attention overseas, pay software development companies when local developers can take care of most software needs, raw materials research and development, equipment fabrication and development of transport infrastructure. Bevista: |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by bubbleforth: 3:36pm On Jan 21, 2016 |
Does this mean that they would sell to those who go for Bevista:at the official rate? |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by bedfordng(m): 3:37pm On Jan 21, 2016 |
mployer:then what would you say about banks refunding their customers the official cbn rate of 199 when they charged you over 300 when making payment. Is that not broad day light robery. 3 Likes |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by doplove(m): 3:42pm On Jan 21, 2016 |
veraponpo: Unfortunately, I have evidences to show you that the banks (I have accounts with FCMB and GTB) charge more than the blackmarket whenever I use my cards for foreign transactions. It bemoans my spirit that this practice is only obtained in Nigeria. In Angola, where I work, whenever you use their bank cards to do foreign transactions what you get is based on their central bank rates but, Nigeria is a different story. We need to escalate this to the consumer protection agency. 5 Likes |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by Intendy: 3:45pm On Jan 21, 2016 |
they want to discourage u from using dollar |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by lanreajax(m): 3:45pm On Jan 21, 2016 |
Buy local. |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by MabraO: 3:45pm On Jan 21, 2016 |
ican2020: So banks only started this wen buhari came into power abi? Ur mumu no get photocopy 2 Likes |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by Demdem(m): 3:46pm On Jan 21, 2016 |
ibe9ja: And what is wrong with the TSA? 1 Like |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by Futureleader201(m): 3:49pm On Jan 21, 2016 |
wealthprod:@ Op. Are you just waking up now? There are many exploitation going on in this country. From PHCN ( Estimated bill, non removal of fixed charge they told us on radio etc) to BANK ( exorbitant Bank charges, sms charges, Bank exchange rate, new - Stamp charge ), From Government Recruitment exercise (Selling of 30 million forms and employing 100 persons), To Aviation ( If you are 40 minutes late before flight time, you have to pay to reschedule your flight but if your flight is delayed, you are not been compensated) . I can go on and on. The list is endless. Anyway, welcome to Zoo 2 Likes 1 Share |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by busomma: 3:51pm On Jan 21, 2016 |
I have been complaining about this for Longoing now. Am in Washington DC as I write this. I have money in my zenith bank account but it's very difficult assessing my money with any of the banks here in America & when am fortune sometimes, Zenith bank's exchange rate is N305/$. That's stealing cos CBN sells dollars to the banks at official rate. CBN should do something about it. Remember, BUHARI is in town. 1 Like |
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by DoctorTim: 3:51pm On Jan 21, 2016 |
Bevista: Good afternoon Bro. U seem to know much about this so I'll have to ask you as you seem to be the most enlightened of the lot making comments here. Please my sister is in Ohio and I'm tryn to pay her school fees though a part of it. About $4000. What is the best way to get it paid at the CBN rate because I have one million naira for this purpose but if I pay at the BDC rate of 300 then I'll be a lot short of the 4k dollars but if I can get it at 199, I'll be able to even go beyond 4k dollars. Please I'm new to this cos she's just gone there about 3 weeks ago. How do I get the best deal via a legit means to get this dollar exchanged at a minimal rate and get this fees sorted out? Thanks and anticipating your response if you've got the time. |
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