Communication is meaningless if the recipients don't comprehend.

Nigerian Govt as usual, NO TRANSPARENCY!! By 6/20 that's when they will announce the Interbank guidelines. No advance notice for ppl to make adjustment how things are done. May God deliver Nigeria from its Ignorance....

Jengem:
Summary of the Press Conference held by the Governor of the Central Bank on the Flexible Exchange Rate Policy held June 15, 2016

1. The Market will operate as single market through the interbank
2. The FX Rate will be purely market-driven
3. CBN will participate through periodic interventions
4. FX primary dealers will be registered to deal directly with the CBN for large deal sizes.

5. FX primary dealers will deal with other authorised dealers
6. There will be no more spread restrictions
7. The 41 items classified for not valid for FX are still not admissible in FX interbank market
8. CBN may offer long-tenored FX forwards

9. Selling of FX forwards must be trade backed with no pre-determined spreads
10. Over the Counter FX futures will be introduced. The OTC FX futures are bespoke and volumes could be non-standard
11. Non-oil exporters are now allowed unfettered access to export proceeds via the interbank market

Timelines
12. Guidelines of the general FX market will be released immediately
13. Guidelines for FX primary dealers will be released immediately
14. FX primary dealers will be appointed and notified by June 17, 2016
15. Interbank FX trading under the new guidelines will begin on June 20, 2016

Additional details will be released as soon they are published by the Central Bank.



http://www.herald.ng/breaking-cbn-releases-new-forex-market-guidelines/

This move would have made a lot of sense and proved very positive if the deaf dullard president had listened to sensible people advice that he should devalue the currency then,most likely the exchange rate may not have crossed the 280 or 300 naira mark ,but the deaf dullard kept saying the naira needed no devaluing. There is no way the naira wont reach 500naira mark because the nation is basically an import based one.
To be honest ,despite the fact that I dont like osinbajo party or he himself but he has proven himself to be a more sensible and intelligent man than the kunu sipping dullard who has almost destroyed the nation economy due ignorance and dullness.

Abagworo:
In summary CBN has ceased interference with exchange rate. Consequently the exchange rates will be based strictly on demand and availability. I don't see Naira losing much value as it will remain within the 300 to 400 vicinity against the US Dollar.

Even if demands go up?dnt 4get we dnt print dollars

wristbangle:
So how much is the exchange rate now?

...it implies $1 will likely be #1,003 before 30th June,2016.

Built2last:
joke

explain what the op wrote in a lay mans term

The question now is are we going to be buying things from foreign site now like pandawill.com or oppomart. Com

biggie73:
...it implies $1 will likely be #1,003 before 30th June,2016.

Laughs. This is a possible deduction if market forces permit it. However, I don't think it might get to that because one of the positive implications of this guideline is to increase the supply side of the foreign exchange. Since the government insisted that it would not devalue the currency to reflect currency economic woes, foreign capitalists refused to bring in their funds, this resulted to FX scarcity and the scarcity, in turn, gave rise to the present black market rate.

Another positive implication is the reduction of rent seeker and speculators through the introduction of primary FX licensed dealers. My only concern is how would these guidelines curb money laundering. I know EFCC is doing a good job and now politics is not as interesting as it used to be in the past under previous administration, however, there may be room for money laundering.

These guidelines will reboot our manufacturing sector back to Pre-Buhari emergence as president, please I did not say boost, but bring back to that point and hopefully, the frequent job losses will cease a bit.

DropShot:

Mynd44 Lalasticlala Seun, this is clear violation of rule 2. Please do justice.

Stop calling them after all you started the insult, "I doubt you have any credible certificate.

Some certificates are not worth the piece of paper they're printed on. Yours surely is such.

And get over the election loss trauma. The loss is irreversible." So ?

Owodiran1:
The question now is are we going to be buying things from foreign site now like pandawill.com or oppomart. Com

Yes you can. With this guideline, the restriction will be lifted hopefully and genuine transactions will be honoured by Banks.

Boss13:


Yes you can. With this guideline, the restriction will be lifted hopefully and genuine transactions will be honoured by Banks.

Thanks for your reply

Davvymavvy:
In short, our currency has been tactically devalued...

No, fantastically devalued.

This is like saying that naira should fight in the ring without any help just referee.

Naira will lose for along time before it picks up .

We guarantee monthly profit trading your forex account for you!

DropShot:

Did you read "the FX rate will be purely "market-driven" or not?

Na wa for illiterates pretending to know something.

DropShot:

I doubt you have any credible certificate.

Some certificates are not worth the piece of paper they're printed on. Yours surely is such.

And get over the election loss trauma. The loss is irreversible.

DropShot:

Displaying of characteristics of a typical tout/thug only confirms lack of decent upbringing. Not evidence of "schooling" anyone.

Say we dey online dey play together no mean say we be mate by any measure.

DropShot:

Na you be the guy?

Abi why you dey use panadol for another man's headache.

Anyone with a decent upbringing and achievement will not behave like a tout unprovoked.

Why do folks like these guy chose to come online to display their ignorance and disgrace their generation?

Davvymavvy:
In short, our currency has been tactically devalued...

And you are tactically wrong!

Devaluation is a deliberate reduction in the value of Naira to a fixed and specific rate.E.g N300 to 1 Dollar.

But what CBN has done is to allow market forces to determine the real value of the Naira which is unknown yet,to he determined by the forces of demand and supply.

Thus the Naira could either appreciate or depreciate,determined by supply and demand.

Jengem:
Even me that I have certificate I dont understand, how much less Bubu

Buhari am 100% sure, he will not understand.
Hahaha hahahahah.... I have BSc in political science.
I need someone to explain.

I don't understand noting...
I just want to know the benefits that all.

Boss13:


Laughs. This is a possible deduction if market forces permit it. However, I don't think it might get to that because one of the positive implications of this guideline is to increase the supply side of the foreign exchange. Since the government insisted that it would not devalue the currency to reflect currency economic woes, foreign capitalists refused to bring in their funds, this resulted to FX scarcity and the scarcity, in turn, gave rise to the present black market rate.

Another positive implication is the reduction of rent seeker and speculators through the introduction of primary FX licensed dealers. My only concern is how would these guidelines curb money laundering. I know EFCC is doing a good job and now politics is not as interesting as it used to be in the past under previous administration, however, there may be room for money laundering.

These guidelines will reboot our manufacturing sector back to Pre-Buhari emergence as president, please I did not say boost, but bring back to that point and hopefully, the frequent job losses will cease a bit.

...Good theoretical analysis. Unfortunately, this is the real world Nigeria where theories die first on meeting Nigerian reality. All the economic theories in the world do not function in Nigeria scenario. Chill till then,buddy...

These forex policies will amount to nothing if we keep discouraging local production and encouraging importation.
These govt have done nothing to trigger non-oil exportation rather they keep killing the economy and threatening banks for retrenching.

Allowing the market force to determine the exchange rate is something that the govt must think twice to embark though necessary and imperative but not timely. The spread from exchange rate will favour foreign currencies because we have import economy.

Future and forward derivatives traded on the floor or OTC should be locked by dealers using offical rate to save the average Nigerian from paying more for less utility/product.

lafuria1:

What is simply new is that they won't be anything like black market or parallel market and cbn official rate.
The cbn official rate was 199 naira to a dollar which is fixed and not market determine by supply and demand. what that meant is that some get to by dollars at 199 while does who can't buy it 350 from BDC. With this new policy, no more such, one single exchange rate, one single market,

Parallel market is as a result of the fixed rate policy.
This floating policy is way different from the existing policy we have been using.

This is the best summary so far... Thumbs up bro....

If this would make naira sensible, why wouldn't it be praised? FX is now market driven despite Govt trying to force a fixed market value which they can't control.... It's best it's market driven. Market driven or not, black market guys would still influence it at last except the banks are allowed free hands and at intervals checkmated by CBN.

Pls,jst tell me if it's good news or bad news. If this means Naire has been devalued,is it to a very low level

ozimec:


Stop calling them after all you started the insult, "I doubt you have any credible certificate.

Some certificates are not worth the piece of paper they're printed on. Yours surely is such.

And get over the election loss trauma. The loss is irreversible." So ?

Saying facts is not insult. Try understand what an insult is.
They already got their deserved ban anyway.

doyinisaac:
Good development

what's good here? We are yet to know the exchange rate

lafuria1:

What is simply new is that they won't be anything like black market or parallel market and cbn official rate.
The cbn official rate was 199 naira to a dollar which is fixed and not market determine by supply and demand. what that meant is that some get to by dollars at 199 while does who can't buy it 350 from BDC. With this new policy, no more such, one single exchange rate, one single market,

Parallel market is as a result of the fixed rate policy.
This floating policy is way different from the existing policy we have been using.

Oga, na lie. Let's wait till Monday and see film. Parallel market will still operate cos CBN can't meet all our demands NEVER!!!

All countries have parallel market for foreign currency not to talk of our big naija that depends on importation

lafuria1:
The good thing is the woman selling garri in the market won't increase her price claiming dollars don increase.

I've been against floating of the naira because of greed bankers but over time I see that the fixed rate didn't eliminate that greed, rather it created cheap millionaires over night, one person goes to CBN and buys dollars for 199 naira, quickly goes to BDC sells it for 290 naira, almost 100% profit for doing nothing, with the new policy, no such thing.

If you hear how bankers make money selling dollars eh, the people who need the dollars don't get it official rate so whats the point of having an official rate of 199 naira.

Dangote will be getting cheap dollars at 199 naira per dollars while students who need to pay school fees or those with medical needs abroad get it at 320 naira per dollar.

Oil prices are down, revenue are down, reserve is running down trying to defend the naira for the common man but this common man still get it at an expensive rate, nothing is being achieved with fixed policy save making few people richer for doing nothing,.

Fantastically corrupt Government

agarawu23:
Oga, na lie. Let's wait till Monday and see film. Parallel market will still operate cos CBN can't meet all our demands NEVER!!!

All countries have parallel market for foreign currency not to talk of our big naija that de
pends on importation

So what's the parallel market rate for the Dollar and pounds in the US and UK respectively?

Over sabi de worry you

Boss13:


Laughs. This is a possible deduction if market forces permit it. However, I don't think it might get to that because one of the positive implications of this guideline is to increase the supply side of the foreign exchange. Since the government insisted that it would not devalue the currency to reflect currency economic woes, foreign capitalists refused to bring in their funds, this resulted to FX scarcity and the scarcity, in turn, gave rise to the present black market rate.

Another positive implication is the reduction of rent seeker and speculators through the introduction of primary FX licensed dealers. My only concern is how would these guidelines curb money laundering. I know EFCC is doing a good job and now politics is not as interesting as it used to be in the past under previous administration, however, there may be room for money laundering.

These guidelines will reboot our manufacturing sector back to Pre-Buhari emergence as president, please I did not say boost, but bring back to that point and hopefully, the frequent job losses will cease a bit.

if th FG and CBN can boast that they can meet demands so why lie to us the teh shortage in FX was due to low crude oil sales
and if thats not the case it means they are lying again like now.

Doyin2:


So what's the parallel market rate for the Dollar and pounds in the US and UK respectively?

Over sabi de worry you

today BDC buys frm me direct frm London £1=N505 mind you £1-$1.4smthing.

agarawu23:
Oga, na lie. Let's wait till Monday and see film. Parallel market will still operate cos CBN can't meet all our demands NEVER!!!

All countries have parallel market for foreign currency not to talk of our big naija thatl depends on importation

where will that parallel market get their dollars from and for how much?

CBN won't be selling dollars to any bank at a fixed rate anymore, and it's only occasionally CBN will enter the market to sell dollars to anybody.
With the floating policy, CBN won't be meeting anybody demand, CBN hand no dey, just occasionally when needs arise.

The BDC and banks are now one and the same thing, what you gonna have is BDC and and banks selling and buying dollars at their own.

DropShot:
I doubt you have any credible certificate.

Some certificates are not worth the piece of paper they're printed on. Yours surely is such.

And get over the election loss trauma. The loss is irreversible.

Where did you get the election loss trauma in his post.
You need to stop being FIXATED on this and ensure that your DullardPoo delivers his campaign promises instead of SCAMMING the zombies who voted for him, not so



www.nairaland.com/attachments/3041343_resize_jpeg_jpeg384963ae8ea3da4721c0ff0a90d0291d