ifyalways:


GT sells @ 332. I bought 2000 this morning at that rate, an hour ago.

ifyalways:


GT sells @ 332. I bought 2000 this morning at that rate, an hour ago.

Ogetogeo:
Just spoke with my account officer now. She said, I would need to apply to the bank stating the quantity of dollar I want to buy and at what rate am willing to buy, the bank would then call me if my proposed rate meets their rate. That they won't tell me what their rate is, I just quote what am willing to buy.

When i probed futtyershe said today rate at their bank is 319 for $.

What kind of Yeye policy is this? So I would need to keep writing letter like am writing a contract proposal for something I need to pay my cash to buy?

Questions begging for answers are:
1. Who has been able to buy dollar cash at the quoted interbank rates (253 - 260)?
2. Which bank sells at these rates?
3. What are the steps to access it?

Please, we need facts not hear say nor online quotes

stagger:


Note the bolded. Unless you are a bank, you cannot buy at that rate. That is the rate that banks will buy from the primary dealers (who are banks anyway). In other words, the big banks in Nigeria who will be the nominated primary dealers will sell to other banks at the interbank rate. That is what it is called INTERBANK i.e. between one bank to another.

When your bank now buys at the interbank rate, they will now sell to the end-users at a profit. So if your bank quoted you at N319, they will make a profit of 319 - 260 = N59 to the dollar.

Usually, if you are buying huge amounts of dollars, then you will get it cheaper as per bulk purchase. So if you are buying $100,000, then your bank may offer you at 310 or 305 because the volume will compensate for the discount.

If you are buyng smaller quantities such as $1000, the bank will give you an expensive quote. Visit any forex trading ECN platform to understand it. Even in globalized forex trading, a true ECN platform will show price quotes from several liquidity providers (the equivalent of the primary market dealers) and the prices are never the same.

Those who think the Naira will appreciate under the present circumstances are dreamers. Naira will only appreciate when the country becomes a net exporter as opposed to a net importer.

If we had schools and hospitals which can attract foreigners to pay in USD, it would have helped. If we can export all manner of products as opposed to only crude and small amounts of charcoal, cashew, etc, then the Naira will gain.

Until then, you will not be able to get Naira at below 300. That I can tell you for real.

truthspeaks:
Confused president, Confused govt, Confused policy, confused economy....omenka n passingshot, u r needed here. Weldone @stagger

kokobongo:



Nice one. But note. from the results below of the CBN SPECIAL SECONDARY MARKET INTERVENTION SALES

The USDNGN official rate effectively becomes N280/$.

however, these monies where used to clear only the back log of pending transactions.

also, note that. The CBN regulates strictly the spreads/margins in which these FXPD can make so i dont think any bank will sell above NGN300/USD1.

it will still take about 1 week or more before we can ascertain the real value and at what rate the banks will be selling. i for sure know the difference cannot be more than 10 naira from the interbank market rate


CBN INTERBANK INTERVENTION RESULT

1 AMOUNT SOLD = US$532,867,169.11

2 HIGHEST RATE= NGN382.00/US$

3 LOWEST RATE= NGN197.00/US$

4 MARGINAL RATE= NGN280.00/US$

5 NO. OF BANKS= 21

stagger:


Note the bolded. Unless you are a bank, you cannot buy at that rate. That is the rate that banks will buy from the primary dealers (who are banks anyway). In other words, the big banks in Nigeria who will be the nominated primary dealers will sell to other banks at the interbank rate. That is what it is called INTERBANK i.e. between one bank to another.

When your bank now buys at the interbank rate, they will now sell to the end-users at a profit. So if your bank quoted you at N319, they will make a profit of 319 - 260 = N59 to the dollar.

Usually, if you are buying huge amounts of dollars, then you will get it cheaper as per bulk purchase. So if you are buying $100,000, then your bank may offer you at 310 or 305 because the volume will compensate for the discount.

If you are buyng smaller quantities such as $1000, the bank will give you an expensive quote. Visit any forex trading ECN platform to understand it. Even in globalized forex trading, a true ECN platform will show price quotes from several liquidity providers (the equivalent of the primary market dealers) and the prices are never the same.

Those who think the Naira will appreciate under the present circumstances are dreamers. Naira will only appreciate when the country becomes a net exporter as opposed to a net importer.

If we had schools and hospitals which can attract foreigners to pay in USD, it would have helped. If we can export all manner of products as opposed to only crude and small amounts of charcoal, cashew, etc, then the Naira will gain.

Until then, you will not be able to get Naira at below 300. That I can tell you for real.

stagger:


To add to this:

The news commentary had it that at yesterday's trading, banks were just BUYING dollars and were not selling. So there was heavy dollar demand and that is why the interbank rate, which opened at N253 or so, started sliding towards N288 to $1. Bidding was going on and you know how bidding or auction processes go: the price keeps going up so that the highest bidder wins.

Had the CBN not intervened to offer dollars for sale at a rate of N280 to $1, believe you me the US Dollar would have been sold to the entity that was willing to pay N382 to $1 and we would have woken up to see rates at close to N400 to $1.

I tell you, we are yet to see the last of this and I am seriously wondering what the appropriate value of the Naira would be. I don't know if CBN will continue such interventions on a daily basis. Other central banks hardly intervene unless they have to. Bank of Japan has performed 3 interventions in the last 8 years or so.

Something will have to give. It is either the country's economic fundamentals are changed so we can become a net exporter (which means the government has to QUICKLY AND MASSIVELY invest in critical infrastructure like power to boost small scale production and manufacturing for export), or we just watch and allow the Naira to fall to the precipice.

We should look to Venezuela for serious soul-searching. That country produces crude oil like we do, wasted their oil money like we have done and had to devalue their currency. Now inflation is so high, that the people are starving and queuing for food. The situation in Venezuela is now so bad that people are breaking into stores, looting food and provisions and anything they can find to survive. The Venezuelan Army is now guarding retail establishments and escorting food trucks to distribution centres and markets. Critical situation in that country which reminds me of the ESSENCO lines we had in Nigeria in 1984/1985. Guess who was president then?

May we never get to that point ever again.

MEILYN:
Let them Leave the exchange rate at #370-$1 till Thursday please. I really need to change my adsense money first ooooo

heskeyw:


Fashola is buying at 890.

stagger:


Note the bolded. Unless you are a bank, you cannot buy at that rate. That is the rate that banks will buy from the primary dealers (who are banks anyway). In other words, the big banks in Nigeria who will be the nominated primary dealers will sell to other banks at the interbank rate. That is what it is called INTERBANK i.e. between one bank to another.

When your bank now buys at the interbank rate, they will now sell to the end-users at a profit. So if your bank quoted you at N319, they will make a profit of 319 - 260 = N59 to the dollar.

Usually, if you are buying huge amounts of dollars, then you will get it cheaper as per bulk purchase. So if you are buying $100,000, then your bank may offer you at 310 or 305 because the volume will compensate for the discount.

If you are buyng smaller quantities such as $1000, the bank will give you an expensive quote. Visit any forex trading ECN platform to understand it. Even in globalized forex trading, a true ECN platform will show price quotes from several liquidity providers (the equivalent of the primary market dealers) and the prices are never the same.

Those who think the Naira will appreciate under the present circumstances are dreamers. Naira will only appreciate when the country becomes a net exporter as opposed to a net importer.

If we had schools and hospitals which can attract foreigners to pay in USD, it would have helped. If we can export all manner of products as opposed to only crude and small amounts of charcoal, cashew, etc, then the Naira will gain.

Until then, you will not be able to get Naira at below 300. That I can tell you for real.

stagger:


To add to this:

The news commentary had it that at yesterday's trading, banks were just BUYING dollars and were not selling. So there was heavy dollar demand and that is why the interbank rate, which opened at N253 or so, started sliding towards N288 to $1. Bidding was going on and you know how bidding or auction processes go: the price keeps going up so that the highest bidder wins.

Had the CBN not intervened to offer dollars for sale at a rate of N280 to $1, believe you me the US Dollar would have been sold to the entity that was willing to pay N382 to $1 and we would have woken up to see rates at close to N400 to $1.

I tell you, we are yet to see the last of this and I am seriously wondering what the appropriate value of the Naira would be. I don't know if CBN will continue such interventions on a daily basis. Other central banks hardly intervene unless they have to. Bank of Japan has performed 3 interventions in the last 8 years or so.

Something will have to give. It is either the country's economic fundamentals are changed so we can become a net exporter (which means the government has to QUICKLY AND MASSIVELY invest in critical infrastructure like power to boost small scale production and manufacturing for export), or we just watch and allow the Naira to fall to the precipice.

We should look to Venezuela for serious soul-searching. That country produces crude oil like we do, wasted their oil money like we have done and had to devalue their currency. Now inflation is so high, that the people are starving and queuing for food. The situation in Venezuela is now so bad that people are breaking into stores, looting food and provisions and anything they can find to survive. The Venezuelan Army is now guarding retail establishments and escorting food trucks to distribution centres and markets. Critical situation in that country which reminds me of the ESSENCO lines we had in Nigeria in 1984/1985. Guess who was president then?

May we never get to that point ever again.

RedCapChief:


The fact that some banks were actually willing to buy at N382 is so scary. Imagine how much they would sell for?

olaolulazio:
I did, but it was 262 to a dollar.
When i woke up, i realized it was 315 to a dollar. Dreams self!

oluyale:
I was charged 329/$ with my Mastercard naira today, while renewing for my domain hosting with hostgator. It's becoming more cheaper to patronize local companies like "whogohost" and make payment on naira

bobo65:
Nonsense
I just bought dollar now now for 347 from abokiii

Gt bank and Zenith near me no get

ifyalways:


GT sells @ 332. I bought 2000 this morning at that rate, an hour ago.

neocortex:


Where ?

stagger:


Note the bolded. Unless you are a bank, you cannot buy at that rate. That is the rate that banks will buy from the primary dealers (who are banks anyway). In other words, the big banks in Nigeria who will be the nominated primary dealers will sell to other banks at the interbank rate. That is what it is called INTERBANK i.e. between one bank to another.

When your bank now buys at the interbank rate, they will now sell to the end-users at a profit. So if your bank quoted you at N319, they will make a profit of 319 - 260 = N59 to the dollar.

Usually, if you are buying huge amounts of dollars, then you will get it cheaper as per bulk purchase. So if you are buying $100,000, then your bank may offer you at 310 or 305 because the volume will compensate for the discount.

If you are buyng smaller quantities such as $1000, the bank will give you an expensive quote. Visit any forex trading ECN platform to understand it. Even in globalized forex trading, a true ECN platform will show price quotes from several liquidity providers (the equivalent of the primary market dealers) and the prices are never the same.

Those who think the Naira will appreciate under the present circumstances are dreamers. Naira will only appreciate when the country becomes a net exporter as opposed to a net importer.

If we had schools and hospitals which can attract foreigners to pay in USD, it would have helped. If we can export all manner of products as opposed to only crude and small amounts of charcoal, cashew, etc, then the Naira will gain.

Until then, you will not be able to get Naira at below 300. That I can tell you for real.

southpole:
Why Govt Came Up With The Policy
Just like any other sector of the exonomy , the Forex sector was equally corrupt. Banks, other financial institutions and related firms were using the initial official exchange rate to defraud govt. Banks used to buy at the official rate of N198 to $1 from CBN which they were suppose to re-sell to intended importers with a little interest of about N2- N5 to facilitate the importation of essential goods and services such as petrol, medical equipments etc but these banks after buying at the rate of N198 per dollar will instead turn and sell to bureau de- change operators at over N300 to a dollar making huge profits and starving genuine importers of cheap dollar.

damola311:
Scam policy.... Scam Government

MKO4ever:

There is a difference between Misunderstanding and Lack of Understanding
Whereas you have a complete misunderstanding of how this forex policy works
Everybody else here on Nairaland seems to completely lack understanding of it
This is what you should know:
Out of the 18 banks, only three were not approved to register as primary dealer
Those three banks are: Skye, Heritage and Enterprise banks
Your definition of INTERBANK is no longer applicable to this forex regime
If you as individual can approach GTBank or the other 14 Primary dealers (banks) to apply for forex
Why on earth will I go to Skye bank who is not a primary dealer for expensive forex
Also note that no bank will make up to N59 margin on a dollar transaction as this is also being regulated by the Apex bank

Willas04:
@Staggar and other financial experts here, can one buy dollar cash from the banks? If yes, what if one buys it and goes to resell them on the black market and make some profit out of it?

stagger:


To add to this:

The news commentary had it that at yesterday's trading, banks were just BUYING dollars and were not selling. So there was heavy dollar demand and that is why the interbank rate, which opened at N253 or so, started sliding towards N288 to $1. Bidding was going on and you know how bidding or auction processes go: the price keeps going up so that the highest bidder wins.

Had the CBN not intervened to offer dollars for sale at a rate of N280 to $1, believe you me the US Dollar would have been sold to the entity that was willing to pay N382 to $1 and we would have woken up to see rates at close to N400 to $1.

I tell you, we are yet to see the last of this and I am seriously wondering what the appropriate value of the Naira would be. I don't know if CBN will continue such interventions on a daily basis. Other central banks hardly intervene unless they have to. Bank of Japan has performed 3 interventions in the last 8 years or so.

Something will have to give. It is either the country's economic fundamentals are changed so we can become a net exporter (which means the government has to QUICKLY AND MASSIVELY invest in critical infrastructure like power to boost small scale production and manufacturing for export), or we just watch and allow the Naira to fall to the precipice.

We should look to Venezuela for serious soul-searching. That country produces crude oil like we do, wasted their oil money like we have done and had to devalue their currency. Now inflation is so high, that the people are starving and queuing for food. The situation in Venezuela is now so bad that people are breaking into stores, looting food and provisions and anything they can find to survive. The Venezuelan Army is now guarding retail establishments and escorting food trucks to distribution centres and markets. Critical situation in that country which reminds me of the ESSENCO lines we had in Nigeria in 1984/1985. Guess who was president then?

May we never get to that point ever again.