Great development

Nigeria is moving forward gradually.

Ok.

chimah3:
Una don come again


Kachikwu stop trying to explain...we don't want to undastand

Is kachikwu CBN gov? Na wa for you

Indeed this is guided deregulation. But the point about allowing non oil exporters access to their foreign proceeds (dollars or other foreign exchange received when someone exports goods abroad) is not entirely correct

What the new policy says, which is the main drawback, is that the person receiving the foreign exchange MUST sell to the authorized dealers at the INTERBANK RATES. This, therefore, is the con of this policy. Why not simply allow someone access to his money to sell to whomever he deems fit, either the banks or anyone, wherever he gets a good deal

You will find that the interbank rates would likely never be the same with the black market rates, due to low availability and documentary requirements banks would need before they sell fx to you. It was this same government that started the nonsensical approach of forcing people that received fx to sell at the then CBN rates to the banks. Now they have moved it to forcing exporters to sell their inflows to the banks at interbank rates

As long as interbank rates are not equal to the black market rates, this in effect is shortchanging the owners of the inflows and I hardly see how this particular provision is a good policy

This measure is temporary as we need to boost local production, less dependent on foreign goods and economic diversification. It is a shame that the “Change” promised is still the same old way. There must be a clear cut policy and strategy as well as commitment to move the nation forward. Otherwise, it shall continue to be motion without movement.

I cannot still understand what you people are saying.

Zico5:
Good move by CBN. But what are the shortcomings of this deal. Nigerians need more enlightenment in case there is unforeseen circumstance.

All these grammar tire me.

All I want to know is that by Monday how much I go fit exchange naira to dollar ...shikenah

And if CBN can introduce the yuan too then the dollar will crash against the naira like packs of cards else we may see the dollar rate skyrockettting.

Good on paper,lets see how practicable and realistic it is in real life

Good move

may God help us all

abeg what happened to the yuan deal. wouldn't it be more prudent to pay our 70% imports in yuan directly than buying expensive dollars first. Also being clearing house for africa would have its benefits. Did politics happen again as this our high appetite would keep shooting up the price for dollars and the everyday citizen would have a harder life trying to pay for not actualizing what would have been a better policy.

Abi am i getting it wrong?

Everything we advised this idiots to do early enough, they stubbornly used common-sense criminal approach to hold exchange rate and destroy the Economy. Even when World Bank and IMF advised, he was foolishly stubborn. Now he can see that he cant run Nigeria as if its his cows in Daura.

Lets hope they damage can be revamped.

I am requesting that all domiciliary accounts, including mine be closed and all numbers on those database converted to Naira in best exchange rate. Transactions should be booked universally on currencies of choice.

If they will listen, is another thing.

dancewith:
Indeed this is guided deregulation. But the point about allowing non oil exporters access to their foreign proceeds (dollars or other foreign exchange received when someone exports goods abroad) is not entirely correct

What the new policy says, which is the main drawback, is that the person receiving the foreign exchange MUST sell to the authorized dealers at the INTERBANK RATES. This, therefore, is the con of this policy. Why not simply allow someone access to his money to sell to whomever he deems fit, either the banks or anyone, wherever he gets a good deal

You will find that the interbank rates would likely never be the same with the black market rates, due to low availability and documentary requirements banks would need before they sell fx to you. It was this same government that started the nonsensical approach of forcing people that received fx to sell at the then CBN rates to the banks. Now they have moved it to forcing exporters to sell their inflows to the banks at interbank rates

As long as interbank rates are not equal to the black market rates, this in effect is shortchanging the owners of the inflows and I hardly see how this particular provision is a good policy

I don't understand what you are saying.

Allowing them access to their FX means they can withdraw their dollar from their bank account. Is there something I am missing?

bennie1980:
This measure is temporary as we need to boost local production, less dependent on foreign goods and economic diversification. It is a shame that the “Change” promised is still the same old way. There must be a clear cut policy and strategy as well as commitment to move the nation forward. Otherwise, it shall continue to be motion without movement.

Brilliantly said.

Truth234:
The Central Bank of Nigeria has been hailed by analysts for abandoning its Naira peg rate for a more flexible exchange rate, after previous refuting the decision even as its external reserves plunged and inflation surged to a six-year high.

Here are the key aspects of the new forex guidelines.

CBN will participate in the market through periodic interventions to either buy or sell forex.

The central bank periodic interventions, would allow the CBN to regulate possible market imbalances, either to prop up Naira against the US dollar or to lower the Naira to stimulate the economy through exports. This will also allow the central bank to manage the activities of Forex Primary Dealers (FXPD), since there is no predetermined spread between the CBN and FXPD, which means spread can also be adjusted to accommodate the current market situation.

CBN to introduce non-deliverable over-the-counter naira-settled futures.

The introduction of non-deliverable forward, perhaps is the most unique of all the guidelines, one because it will help curtail the loophole created in the previous forex policy that allow speculators determine the exchange rate at the parallel market, and also encourage businesses and investors to hedge against eventualities. Hence, eliminate hoarding due to fear of uncertainties.

What this means is that, if you need forex transaction in December, you can peg your foreign exchange rate at let’s say N250 and if in December exchange rate is N270, the central bank will offset the N20 gap, such that you are not losing any money.

“But if the rate on that day is lower than the deal date rate, you’ll pay the Naira equivalent.”

Again, it will encourage capital importation from foreign investors, since they can now hedge against a further plunge in oil prices and at the same time buy forex at a predetermined rate to remit proceeds.

Non-oil exporters now allowed unfettered access to their FX proceeds.

Another bold move, is allowing non-oil exporters unbridled access to their FX proceeds, this initiative has officially brought back diversification agenda to the table and indicate the readiness of the government to tackle Nigeria’s mono-crude oil status. Especially, knowing that non-oil sector contributed 89.71 percent to the first quarter GDP, after falling 5.77 percent, the highest in years.

However, this does not mean gauge of consumer prices (inflation) will drop from the current 15.6 percent, if any changes it might surge to 16 percent in the second quarter pending the time the current policy would have filtered through key industries.

Overall, the flexible exchange rate will once again position Nigeria as an investment destination, boost job creation, enhance importation, increase consumer confidence and modulate consumer prices in the long run if well implemented.

http://investorsking.com/understanding-key-aspects-of-cbns-new-forex-guidelines/

that means form A is no longer active for students that want to pay school fees abroad?

It is a welcome development but the issue am concern about is that proper implementation and Naija factor.

Can anyone with adequate knowledge enlighten me on how this policy differs from IBB's SFEM policy of 1986?

Truth234:
The Central Bank of Nigeria has been hailed by analysts for abandoning its Naira peg rate for a more flexible exchange rate, after previous refuting the decision even as its external reserves plunged and inflation surged to a six-year high.

Here are the key aspects of the new forex guidelines.

CBN will participate in the market through periodic interventions to either buy or sell forex.

The central bank periodic interventions, would allow the CBN to regulate possible market imbalances, either to prop up Naira against the US dollar or to lower the Naira to stimulate the economy through exports. This will also allow the central bank to manage the activities of Forex Primary Dealers (FXPD), since there is no predetermined spread between the CBN and FXPD, which means spread can also be adjusted to accommodate the current market situation.

CBN to introduce non-deliverable over-the-counter naira-settled futures.

The introduction of non-deliverable forward, perhaps is the most unique of all the guidelines, one because it will help curtail the loophole created in the previous forex policy that allow speculators determine the exchange rate at the parallel market, and also encourage businesses and investors to hedge against eventualities. Hence, eliminate hoarding due to fear of uncertainties.

What this means is that, if you need forex transaction in December, you can peg your foreign exchange rate at let’s say N250 and if in December exchange rate is N270, the central bank will offset the N20 gap, such that you are not losing any money.

“But if the rate on that day is lower than the deal date rate, you’ll pay the Naira equivalent.”

Again, it will encourage capital importation from foreign investors, since they can now hedge against a further plunge in oil prices and at the same time buy forex at a predetermined rate to remit proceeds.

Non-oil exporters now allowed unfettered access to their FX proceeds.

Another bold move, is allowing non-oil exporters unbridled access to their FX proceeds, this initiative has officially brought back diversification agenda to the table and indicate the readiness of the government to tackle Nigeria’s mono-crude oil status. Especially, knowing that non-oil sector contributed 89.71 percent to the first quarter GDP, after falling 5.77 percent, the highest in years.

However, this does not mean gauge of consumer prices (inflation) will drop from the current 15.6 percent, if any changes it might surge to 16 percent in the second quarter pending the time the current policy would have filtered through key industries.

Overall, the flexible exchange rate will once again position Nigeria as an investment destination, boost job creation, enhance importation, increase consumer confidence and modulate consumer prices in the long run if well implemented.

http://investorsking.com/understanding-key-aspects-of-cbns-new-forex-guidelines/

Great move by our leader.but must we always suffer for something we have solution to ?always slow to solution provision in this nation.

TrollTrap:
Ok I've been meaning to ask.....how can someone send money from Nigeria to the UK?

Western Union or Form A

justicejay:
All dis bank yeye strategics don't increase the cash in my wallet

see reasoning!

mployer:


I don't understand what you are saying.

Allowing them access to their FX means they can withdraw their dollar from their bank account. Is there something I am missing?

No. You cannot under the new policy. You must sell to the receiving bank at interbank rate

That's the aspect which I have issues with and which the op is trying to mislead people

This topic has been very interesting... to know more bout it , check out
http://bucketlistng.ng/2016/06/17/6-things-to-know-about-the-new-forex-policy/

chimah3:
Una don come again


Kachikwu stop trying to explain...we don't want to undastand

Is Kachikwu now the CBN Governor?

Teejayphillip:
I pray d policy does Us good....

May d almighty Lord give our leaders wisdom,knowledge and understanding to lead Us right...

God bless Nigeria

God bless we d citizens

God bless you too sir

Osibanjo at work. It takes a technocrat to govern and not a dictator. I wish Osibanjo continues till 2019, thump up for the yoruba christians

They devalue naira with style

Why the long story...

eph12:
Reading

Lemme just pretend like I know what that post is saying

LOL!

Frankly I was hoping to read a jargon-free write-up.

But then...

erumena:


Is Kachikwu now the CBN Governor?

You looking for who to gist with this evening ko?!

Lexusgs430:


How much do u want to send?

500k to a mil

Ubyy:


Western Union or Form A

Western union, at what rate?
The official one?

TrollTrap:


500k to a mil

That's between £1000 - £2000. Hunt down Bebe2 on nairaland