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Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar - Business (6) - Nairaland

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Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by carpenter(m): 1:14pm On Jan 22, 2016
doplove:


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.

In Angola, banks can still get the equivalent amount of dollars you spend back from the Central Bank to settle those transactions. That option is not available in Nigeria anymore as per information from the CBN. This was available till the CBN stopped it. So no consumer protection agency can help with regards to this.

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Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by solibayo: 1:18pm On Jan 22, 2016
magicfingers009:
At last one educated person on this thread.

CBN sells to DMBs who come to bid for CBN transactions using CBN instruments (such as FORM A and FORM M) for their customers.

Ignorant people with less than a hundred thousand naira in their accounts are screaming robbery.

If you close your account today, banks wouldn't feel the effect.



I am sorry bro. You just came here to show us your inept ignorance. Read The Economist more often.


So because the greedy banks pay you about 300k per month means people should not talk again abi.....i think your brain dey enter pause wella


How do you ethically justify charging me around N300/$1 and refund me at N199/$1 on the same transaction....how?


And do you think if about N10M accounts are to be closed today, you would still have a job talk-less of to come up here and be spewing rubbish?

Am sure you know how much these banks make per month even just from SMS alert charges


Try and hide your stupidity bros

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Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by solibayo: 1:22pm On Jan 22, 2016
wirinet:


I say it is not as simple as that. During soludo time what was the average price of crude? what was our import bill? what was our expenditure (especially recurrent). During soludo, the OBJ government was able to pay our debt to the paris club, meet the dollar demands of Nigeria at the bi-weekly dollar dutch auction sales and save enough money in our foreign reserve and sovereign wealth fund. He even had the luxury of hosting two expensive world events - Commonwealth Games and Commonwealth Heads of Governments. So because the OBJ government was relatively "prudent", soludo had enough dollars to bridge the gap between the parallel and official markets.

But now the situation has reversed. Crude is selling at $27 per barrel, our taste for imported products has skyrocketed, our recurrent expenditure has ballooned, and there are loan obligations to pay. Dont forget that corruption within the government agencies has also risen. So where do you want Emefiele to get the dollars to bridge the Gap between the markets?

Nice analysis sir but the key words here are prudent and savings.....the Last administration was neither prudent neither did they save up which has largely contributed to the mess we are in today apart from the corporate greed of the banks and BDC's while our forex earnings from crude has significantly nose-dived
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by solibayo: 1:25pm On Jan 22, 2016
carpenter:


It makes me happy to read words written better than I would have written it.

I think we need to devalue our currency and even though I also support the CBN on their moves, I think it is just a matter of when they will devalue.

On the issue of banks...I think they act legally most times but unethically. However, that has always been the case for banks in most parts of the world.

I can confirm there is a part of this PTA and BTA thing that is not clear, the CBN keeps releasing information that it is meeting those needs while the banks continue to refuse to sell PTA and BTA (at least to majority of Nigerians that require it legitimately) and ask you to use their cards. Could it be that the banks still have customers that sell dollars to them which they buy @199 and sell to the public @300? Or are they selling dollars deposited by some of us to to the public at higher margins with hope that we all do not come and collect at the same time. By the way, they even tell you they don't have cash sometimes and there is nothing we can do. I must admit I did this (sell to the bank at the bank rate) in the past but realised I was not being fair to myself. I don't trust the banks because even for cases such as COT that is clearly spelt out, they still act as they please. Finally, why is the fx or treasury unit of the banks a cartel...why do some junior officers in those units receive more bonuses than even some unit heads? Chances are the banks are as culpable as the subsidy receiving thieves but we don't want them to go down because hell might break loose...we try to manage the situation.


God bless you sir

The junior officers part just tells you a lot of corporate greed is involved in this mess
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by onatisi(m): 1:41pm On Jan 22, 2016
AdeMoss:


NO. You can fund the USD credit card repayment the same way PTA is funded. Advise your bank to purchase from CBN at their advised rate.
now I am learning something new. I know what bta is but pls what is pta ?
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by carpenter(m): 1:58pm On Jan 22, 2016
AdeMoss:


NO. You can fund the USD credit card repayment the same way PTA is funded. Advise your bank to purchase from CBN at their advised rate.

Sorry Sir...NO.

You do not fund your bank credit card via CBN advised rates. You fund it via inflow or dollars you deposited (however you got it).
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by ibietela2(m): 2:31pm On Jan 22, 2016
Scholarforever:
The right tense to use here is 'tell' and not 'told'

k
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by magicfingers009: 2:53pm On Jan 22, 2016
Oga, read what Bevista wrote with an open mind.

Commercials banks bid for FX from CBN for CBN transactions with instruments such as FORM A, FORM M, Letters of Credit (Intl Trade Finance). CBN does not sell dollars to bank to settle card transactions. Protest and get your ass behind bars for civil disobedience.

doplove:


@Bevista said the banks buys at higher rate, can i assume it's N185 quoted by @Greene66. To the best of my knowledge the banks never buys above the CBN rates.

Just imagine;
Profit when banks buy in exchange = N199-N185 = N14
Profit when banks sell in exchange = N300 - N199 = N101

This is daylight robbery, and we should all resist this if we can...... protest is one way.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by AdeMoss: 3:46pm On Jan 22, 2016
carpenter:


Sorry Sir...NO.

You do not fund your bank credit card via CBN advised rates. You fund it via inflow or dollars you deposited (however you got it).

Sir, I am not speculating. This is one thing I do on a daily. You CAN fund USD credit card repayment at CBN rate. Every Nigerian have a limit of USD they can access with CBN.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by Teenaira: 4:21pm On Jan 22, 2016
magicfingers009:
OGA! CBN doesn't finance PTAs and BTAs. The monitor and encourage commercial banks to sell BTAs and PTAs to individuals above 12 years with a valid visa and a ticket to a maximum cap of $2,500


My brother, all I wanted was £200. I expect that this should not really be too much for a bank to sell to a long standing customer.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by Sanchase: 8:53pm On Jan 22, 2016
carpenter:


I think we need to devalue our currency and even though I also support the CBN on their moves, I think it is just a matter of when they will devalue.
.

Devaluation of a country's currency in response to the activities of black marketers is not good economics.

You do not devalue your currency due to influence of black marketers, GEJ did it before (it was wrong). The solution is to exercise control over the supply and trade of those black marketers for example CBN stopped supplying BDC foreign currency but failed to create adequate channel for genuine Nigerians in need of forex to have access.

The best solution is to keep the sale of foreign currency as a Nigerian government facility and provide adequate access for genuine Nigerians, when you devalue your currency you allow black markets to control the government (it should never happen).

Devaluation has severe consequences for a country like Nigeria who relies on so much imports (cost of goods par example).

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Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by magicfingers009: 5:55am On Jan 23, 2016
Its you that needs to hide your stupidity and stop the lies just to garner cheap relevance on this forum.

Its common knowledge that when you purchase anything online, the bank blocks a certain amount at whatever the prevailing rate is for that day. If they can't settle your FX transaction, the block is released back to you.

If you don't like how banks charge you, keep your ten naira under your bed, I'm sure nobody would notice. Omo ode.
solibayo:


So because the greedy banks pay you about 300k per month means people should not talk again abi.....i think your brain dey enter pause wella


How do you ethically justify charging me around N300/$1 and refund me at N199/$1 on the same transaction....how?


And do you think if about N10M accounts are to be closed today, you would still have a job talk-less of to come up here and be spewing rubbish?

Am sure you know how much these banks make per month even just from SMS alert charges


Try and hide your stupidity bros
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by blym4real: 6:08am On Jan 23, 2016
AdeMoss:


Sir, I am not speculating. This is one thing I do on a daily. You CAN fund USD credit card repayment at CBN rate. Every Nigerian have a limit of USD they can access with CBN.
Can you expatiate on this sir.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by carpenter(m): 6:27am On Jan 23, 2016
Sanchase:


Devaluation of a country's currency in response to the activities of black marketers is not good economics.

You do not devalue your currency due to influence of black marketers, GEJ did it before (it was wrong). The solution is to exercise control over the supply and trade of those black marketers for example CBN stopped supplying BDC foreign currency but failed to create adequate channel for genuine Nigerians in need of forex to have access.

The best solution is to keep the sale of foreign currency as a Nigerian government facility and provide adequate access for genuine Nigerians, when you devalue your currency you allow black markets to control the government (it should never happen).

Devaluation has severe consequences for a country like Nigeria who relies on so much imports (cost of goods par example).


I understand your points but you seem to have missed the point that Oil exports is responsible for about 90% of Nigeria's foreign exchange and at some point it was over 100-126 USD while naira was around 150-160 CBN rate (not sure). Now that Oil is hovering around 30 USD...do the maths, and add the fact that we seem to now have a more responsible govt, so some leakages would have been blocked. Conservatively, the naira should be trading at 250-300...This is not emotional for me, it is just what it is. Nigeria is not alone in this and you might say people are hoarding dollars, people are buying what they should not be buying with dollars... but that is still demand for forex.

In 2014, the Angolan Kwanza was 100 to a dollar and in the black market you can sell at 102. Now it is 161 and the black market has risen to over 300kwanza...the gap is too much just like we have in Nigeria. However, Angola has a population of (20-25m) people, depending on who you talk to and they have a reserve of 29bn dollars...a little more than we have with way more population. They have resisted devaluation more than Nigeria has but somehow they always have to do it.

I support the CBN in their moves but I am of the opinion they are trying to block all they can then devalue...it is just a matter of time unless....Oil prices pick up or we get other income streams.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by carpenter(m): 6:50am On Jan 23, 2016
AdeMoss:


Sir, I am not speculating. This is one thing I do on a daily. You CAN fund USD credit card repayment at CBN rate. Every Nigerian have a limit of USD they can access with CBN.

I will be happy to know what bank and how they do it...
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by solibayo: 9:02am On Jan 23, 2016
magicfingers009:
Its you that needs to hide your stupidity and stop the lies just to garner cheap relevance on this forum.

Its common knowledge that when you purchase anything online, the bank blocks a certain amount at whatever the prevailing rate is for that day. If they can't settle your FX transaction, the block is released back to you.

If you don't like how banks charge you, keep your ten naira under your bed, I'm sure nobody would notice. Omo ode.

SMH...Typical nigerian mediocre.....earns $1000 per month after cheating thru college tests, won't let people rest online. Will continue to defend his greedy paymasters till he can't login at work again and will suddenly start wailing.

kindly tell your paymasters they are killin the economy by their round-tripping and soon it will come back to destroy them inadvertently.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by solibayo: 9:06am On Jan 23, 2016
AdeMoss:


Sir, I am not speculating. This is one thing I do on a daily. You CAN fund USD credit card repayment at CBN rate. Every Nigerian have a limit of USD they can access with CBN.


Can you show us the way?
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by AdeMoss: 10:11am On Jan 23, 2016
blym4real:

Can you expatiate on this sir.

It depends on what. But your bank should be able to assist
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by carpenter(m): 10:30am On Jan 23, 2016
AdeMoss:


It depends on what. But your bank should be able to assist

Oga tell us the bank you use to support your statement
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by onatisi(m): 10:43am On Jan 23, 2016
carpenter:

Oga tell us the bank you use to support your statement
solibayo:

Can you show us the way?
blym4real:

Can you expatiate on this sir.

Go to your various banks and verify the information
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by onatisi(m): 10:44am On Jan 23, 2016
AdeMoss:


It depends on what. But your bank should be able to assist
you have said enough let them go to their various banks and do more research
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by carpenter(m): 10:50am On Jan 23, 2016
onatisi:
you have said enough let them go to their various banks and do more research

Apparently, we have a number of people that give out information that cannot be verified.

I have noted your names for the future.

If you fund your card with a PTA or BTA that is a different thing. To claim you fund your cards at CBN advised rates is a bloody lie.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by onatisi(m): 10:56am On Jan 23, 2016
carpenter:


Apparently, we have a number of people that give out information that cannot be verified.

I have noted your names for the future.

If you fund your card with a PTA or BTA that is a different thing. To claim you fund your cards at CBN advised rates is a bloody lie.
u are mixing ppl up. I never said i have funded any card
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by carpenter(m): 10:58am On Jan 23, 2016
onatisi:
u are mixing ppl up. I never said i have funded any card

No Sir I am not...you are the one that joined issues by backing someone passing across wrong information.

So you and him have become the same...guilty by association.

So encourage him to state which bank funds his card with CBN rates and I would tender my unreserved apology after confirming that info is genuine.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by onatisi(m): 11:02am On Jan 23, 2016
carpenter:


No Sir I am not...you are the one that joined issues by backing someone passing across wrong information.

So you and him have become the same...guilty by association.
I like u and ur style. But let disagree to agree. All I said was that you should go to your various banks to verify the information given,wasn't that what I said ? We can't and don't know everything ,he maybe right but before you can reach a conclusion ,try and visit your bank first
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by blym4real: 11:04am On Jan 23, 2016
onatisi:
you have said enough let them go to their various banks and do more research
You are here already, are you the one sharing the information?

You can't share the information on the currency exchange rate thread and someone like you is here enlightening us yet you are still not happy about it.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by onatisi(m): 11:05am On Jan 23, 2016
blym4real:

You are here already, are you the one sharing the information?

You can't share the information on the currency exchange rate thread and someone like you is here enlightening us yet you are still not happy about it.
so asking you to verify the information given whether it is authentic or not makes me a bad person now ,abi Ok ooooo
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by carpenter(m): 11:06am On Jan 23, 2016
onatisi:
I like u and ur style. But let disagree to agree. All I said was that you should go to your various banks to verify the information given,wasn't that what I said ? We can't and don't know everything ,he maybe right but before you can reach a conclusion ,try and visit your bank first

He is not right, he is wrong...if you do not know anything about this...stay clear.

That is the honourable way!
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by onatisi(m): 11:08am On Jan 23, 2016
carpenter:


He is not right, he is wrong...if you do not know anything about this...stay clear.

That is the honourable way!
grin grin grin I no go argue .
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by blym4real: 11:09am On Jan 23, 2016
onatisi:
so asking you to verify the information given whether it is authentic or not makes me a bad person now ,abi Ok ooooo
I perfectly understood the message you were passing across to him.
If you are not ready to share information please don't block other people from sharing.
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by onatisi(m): 11:11am On Jan 23, 2016
blym4real:

I perfectly understood the message you were passing across to him.
If you are not ready to share information please don't block other people from sharing.
grin grin ok I no go talk again . Are u happy now cheesy
Now give me a smile grin
Re: Why Do Our Bank Charges Us N301 While Cbn Sell For Them At N199 Per Dollar by carpenter(m): 11:19am On Jan 23, 2016
onatisi:
grin grin ok I no go talk again . Are u happy now cheesy
Now give me a smile grin

grin

Bro we love you and are trying to get you out...which you now are.

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