MadCow1:



Wetin Concern USB with Dollars?



Abi you wan use USB transfer Dollars?

damola311:


I'm not sure you've even touched a USD before

MadCow1:



So na like this you use me collect all these likes abi?

tivta:
crazymommy like I said nothing can improve till there is power


martineverest see what your government policy has caused

ifyalways:


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

crazymommy:
I noticed that whenever you don't have anything sensible to say you start mentioning sex.... e pain am..

blueseacats:
The banks are robbing the government , I agree, but who are the genuine importers that does not round trip?

Ogetogeo:




This is the most sensible explanation so far. I wonder why people try to politicize everything, even those that understands zilch about the policy are all over the place celebrating dollar at 253.

Thank you @Stagger

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.

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

yaki84:

u get made in naija television? I nid 300pieces asap.

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.

solid3:


The dollar can no be gotten at this new rate, the rate is still the old rate of N335-N345.

Is there something, I dont seems to understand here?

adconline:

Please stop using Venezuela's situation to justify what's going on in Naija.
Venezuela's budget in 2016 is $247bn while Naija is $30bn
Venezuela GDP is $438bn with a population of 30m..
In the last 10 years, it has budgeted more $100bn unlike in Naija. It has spent more on social programs and didn't save for rough days like these.
It's spending more on health, education and social programs this year alone more tha what Naija has spent in the last 10 yrs. Their literacy level is 95.2% while that of Naija is 59. Life expectancy is 74 yrs while Naija 52.
Venezuela generates 5 times more electricity than Naija.


While in Naija, we have Politrickians budgeting 70% of our meager budget for their welfare..

iykedare:



Why mention omenka and passingshot in the same sentence. That's an insult to passingshot.

Please apologize.

TheGoodJoe:



Your the one that is very funny here. So, tell me, when you want to use your card to pay for flight, you will submit a bid?

It does not work like that. There will be quoted prices in banks and you buy. The process is just starting. Those that want to buy from the Interbank (Primary and Secondary) now will bid.

The consumers will by at the quoted prices. It is that simple.

The price will change day to day, depending on the quoted interbank price for the day which in turn determines quoted price.

You can not bid. Tell them you want to buy Five Hundred dollars, let us see if the bank will not tell you how much they sell. (Note for now, the black market and interbank prices have not narrowed.)

Ogetogeo:



Very funny.
How much dollar can you spend with your normal ATM card daily now? $50 for Stanbic at 335 per dollar.
Were you thinking I was talking of spending peanuts using ATM cards when I contacted my account officer?

Let me educate you a bit because its obvious you have issues comprehending.

I do Biz that involves some volumes of dollars daily, the dollar rates has been affecting me badly, so when I read of this new policy what I did was to talk to my bankers.
I was given replies that were similar but confusing and I came here with questions on if one can actually get dollars at the quoted rates yesterday which was 240-260?

I read through various threads and how everybody was famzing economic guru and giving us online figures. Online figures are none of my business because I needed dollars cash but the black market around me were selling for 340, I wanted where I could get it cheaper with all the celebrated news of floating. Did I commit a crime?

I approached my bankers about three of them yesterday, two asked me to wait till they get better clarifications how it works but one from Access Bank gave me her response which is what I brought here to confirm. Later in the day, the other two from UBA and Stanbic confirmed similar issue about bidding.

But you have been on my case that my account officer was wrong, I simply asked you to show me a bank imcan walk into and get dollars at the supposed interbank rates but you have been up and everywhere with Nada.


Please, let me be.

Ogetogeo:



Very funny.
How much dollar can you spend with your normal ATM card daily now? $50 for Stanbic at 335 per dollar.
Were you thinking I was talking of spending peanuts using ATM cards when I contacted my account officer?

Let me educate you a bit because its obvious you have issues comprehending.

I do Biz that involves some volumes of dollars daily, the dollar rates has been affecting me badly, so when I read of this new policy what I did was to talk to my bankers.
I was given replies that were similar but confusing and I came here with questions on if one can actually get dollars at the quoted rates yesterday which was 240-260?

I read through various threads and how everybody was famzing economic guru and giving us online figures. Online figures are none of my business because I needed dollars cash but the black market around me were selling for 340, I wanted where I could get it cheaper with all the celebrated news of floating. Did I commit a crime?

I approached my bankers about three of them yesterday, two asked me to wait till they get better clarifications how it works but one from Access Bank gave me her response which is what I brought here to confirm. Later in the day, the other two from UBA and Stanbic confirmed similar issue about bidding.

But you have been on my case that my account officer was wrong, I simply asked you to show me a bank imcan walk into and get dollars at the supposed interbank rates but you have been up and everywhere with Nada.


Please, let me be.

stagger:


So what is your point? Their coffers are now empty. Has all the spending stopped the food lines?

adconline:

Please stop using Venezuela's situation to justify what's going on in Naija.
Venezuela's budget in 2016 is $247bn while Naija is $30bn
Venezuela GDP is $438bn with a population of 30m..
In the last 10 years, it has budgeted more $100bn annually unlike in Naija. It has spent more on social programs and didn't save for rough days like these.
It's spending more on health, education and social programs this year alone more tha what Naija has spent in the last 10 yrs. Their literacy level is 95.2% while that of Naija is 59. Life expectancy is 74 yrs while Naija 52.
Venezuela generates 5 times more electricity than Naija.


While in Naija, we have Politrickians budgeting 70% of our meager budget for their welfare..

kaboninc:


A simple analysis of the black market rate (which is the rate that you could easily obtain the dollar) to the official rate of the Venezuelan bolivars to the dollars would do.

youngalex:
This Policy is meant to benefit the Capitalist Investors and The Bank cos their Directors will be able to transact large volumes of forex and rake in abnormal profit while those who really need it will be told to keep applying or be compelled to buy almost at black market rate...They are indirectly running an OFFICIAL BDC cos even the letters of credit will now be quoted at the prevailing interbank rate...What an Economic Tragedy

Martartins:
They policy was set to draw foreign direct investment and discourage importation in the long run. The rate at which the naira will fall will make it very hard for importers, but will boost local production in other for us to increase our GDP and start exporting to acquire more forex for the economy. It is a good move in the long run, but on the short run, prepare for hard times Nigerians..

okoloto:
NONSENSE POLICY. THIS IS JUST TO ENRICH THE BANKS AND SOME SMART GUYS IN THE BANK. OUR CBN DON'T EVEN KNOW WHAT THEY ARE DOING. CAPITALISM IS ALL ABOUT FREE MARKET. ALLOW THE MARKET TO DETERMINE THE PRICE. WITH THIS ITS ONLY THE CONNECTED THAT HAVE ACCESS AND NOT FOR THOSE THAT REALLY NEED IT FOR IMPORTING WHAT THE ECONOMY REALLY NEEDS.
FOR INSTANCE IF YOU ARE AN INVESTOR BRINGING IN YOUR MONEY, YOU GET BANK RATE WHICH IS LOWER AND NOT THE REAL MARKET PRICE BECAUSE YOU MUST TRANSFER THROUGH THE BANK. WHICH INVESTOR WILL LIKE TO LOOSE MONEY EVEN BEFORE HE STARTS DOING BUSINESS. THIS GOVERNMENT IS A TOTAL FAILURE....THEY SHOULD OVERHAUL BOTH THE ECONOMIC TEAM AND THE DECISION MAKING OFFICERS AT CBN

adconline:

Their situation is a lot better than Naija. Their govt subsidizes food, healthcare and social programs. They are mad that diary products are scarce. If I may ask you where can you get fresh milk in Naija?? Their GPD per capita is over $13k while that of Naija is about $3k. My point is that poor folks in Venezuela are like Kings in Naija.
Government revenue in Venezuela is $142bn while in Naija $30bn and their govt has more than 4x to spend on a 30m people vs Naija with $30bn to spend on 170m peeps. BTW, 70% of that goes to Politrickians and overhead cost. Naija poor folks aren't rioting because they have never received freebies or social benefits from govt, so what's the point of rioting and getting shot??

Trutek:
The Present CBN Forex Policy Is A Clone Of The Venesuelan Model. The Result Is Already Predermined: Bankers And Their Proxies Are Going To Become Stupendiously Rich.

adconline:


How do you discourage importation when you generate 0MW?
How you do discourage importation when you budget 70% on recurrent expenditure and chop money and then you said that you would cut capital spending by 50%?? So you are spending 15% on capital project

adconline:

Does Naija govt use black market rate of N350 or N197 in govt transactions??