*Senate Will Reject Proposal to Punish People for Ownership of FOREX*

 

The Senate has expressed surprise at a recommendation by the Nigerian Law Reform Commission for a review of the Nigerian Foreign Exchange Act in order to empower the Central Bank of Nigeria to jail people for up to two years  or fine them for 20 percent of the amount of the foreign currency held in their possession for more than 30 days. 


The Senate in a statement signed by its spokesperson, Senator Aliyu Sabi Abdullahi stated that with its focus on boosting investor' confidence in the nation's economy,  such move as proposed by the Commission that will prevent investors from making  free entry and free exit from the market will be outrightly rejected by its members.


 "The measure is disruptive and counter productive, threatening to undermine many of the reform efforts already underway in the legislature and by government ministries intended to boost investor confidence. 

 

“The Senate would never pass such a punitive and regressive proposal. Overall, some of the Commission’s recommendation has many sound attributes and could help Nigeria’s investment climate.  We believe the CBN should have the authority to regulate the forex market and determine the exchange rate policy as already enshrined in its enabling Act.


” A market-oriented exchange rate policy is the best recipe for guiding the operations of the foreign exchange market.  This will ensure the supremacy of market mechanisms in efficiently allocating the scarce forex resources", the Senate stated.



It added: “we will continue to work with the Executive to halt the worsening recession and return to economic growth.”  


 

The proposed changes are said to be intended to help control capital flows and prevent foreign exchange from being taken out of the country.  Analysis of the proposed rules changes, that were posted on the Commission’s website, states that “the amendments are necessary for effective monitoring and control, and to ensure probity in foreign-exchange transactions in Nigeria.”



 Last September, the Senate spearheaded an economic agenda to pass key reform legislations to promote economic growth through greater public sector participation, boost investor confidence and create jobs

 

Also in June, the CBN was cheered for loosening its control over exchange rate policy in a bid to encourage investors to return to Nigeria and prevent capital flight.  Hopes were high after the Nigerian government finally allowed the naira to float, as was recommended by domestic and international investment advisors.  Currently, however, the markets do not reflect a loosening of CBN control over the forex market, leading to the emergence of multiple exchange rates.

 

End


Signed

Senator Aliyu Sabi Abdullahi 

Chairman, Senate Committee on Media and Public Affairs

The senathieves will reject such proposal because they are the main culprits, hiding forex in their houses, farms and soakaway pits, instead of placing them in their domiciliary accounts like normal human beings.

I concur

If this law is mistakely passed, investors will run out of the country!

IVORY2009:
If this law is mistakely passed, investors will run out of the country!

If the money is placed in your domiciliary account, nobody will come and disturb you. Why should you store huge forex outside the banking system.

The guy is servicing corrupt Nigerians. ...he is seeking ways of covering their ssoft spots. If the senate is really truthful they can exempt the so called investors but wait shouldn't their primary interest be the country overall interest_?

kmcutez:

If the money is placed in your domiciliary account, nobody will come and disturb you. Why should you store huge forex outside the banking system.

kmcutez:


If the money is placed in your domiciliary account, nobody will come and disturb you. Why should you store huge forex outside the banking system.

Did you read the article, its says holding forex for a period of 30 days, dat means even if FX is in ones account, you are liable to be arrested or fined, this will diffinately not be good news to prospective investors!

kmcutez:


If the money is placed in your domiciliary account, nobody will come and disturb you. Why should you store huge forex outside the banking system.

You obviously naive about economic matters, when have it become a crime to keep money at home if the owner wishes to do so, is it by force to keep money in the bank

Nigerian government should come up with a flexible economic policies and allow market forces to determine the value of naira instead of using force to stabilize naira,it won't work and economy will become worst.

IVORY2009:



Did you read the article, its says holding forex for a period of 30 days, dat means even if FX is in ones account, you are liable to be arrested or fined, this will diffinately not be good news to prospective investors!

I don't think the article is complete. I read that it was holding forex outside the banking system for 30 days.

[s]

CandyDiamond:
Nigerian government should come up with a flexible economic policies and allow market forces to determine the value of naira instead of using force to stabilize naira,it won't work and economy will become worst.

[/s]

I am certain you don't have a cent talkmore of a dollar so why complain over a policy that doesn't affect you but those in power? Do you even know what hoarding is ? Do you know how it affects the stability of the naira?

That is the crooks for you Nigerians!

These criminals realise any such law would see them falling the most convicted which isnt a desirable situation, just like any serious anti corruption bill that would be taken before them.

These guys are a mighty clog in the wheel of progress Of this country.

How i desperately wish we could just do away with them.

kmcutez:


I don't think the article is complete. I read that it was holding forex outside the banking system for 30 days.

Yes, wat is wrong if a businessman/woman choose to hold fx outside the banking hall, due to speculative measure or precaultary measures, as far as he/she never got the fx via dubious means.....

Is buying and selling of forex a crime? If I have a commodity that I am not ready to sell yet, because I am waiting for it to appreciate in value, should I be punished for that? Why should one be forced to hurriedly sell off his products within 30days?
Is it not much more practical for more forex to be made available to the population, than to start prying into people's bank accounts or safes for those who haven't sold theirs?

Progressive01:
That is the crooks for you Nigerians!

These criminals realise any such law would see them falling the most convicted which isnt a desirable situation, just like any serious anti corruption bill that would be taken before them.

These guys are a mighty clog in the wheel of progress Of this country.

How i desperately wish we could just do away with them.

Will you shut up!

In sane climes the govt has no right to tell their citizens where to store their wealth.

So you expect us to continue putting all our hard earned savings in a highly volatile non converterble junk currency?

If you must know forex supply in the West are met by both local banks and private individuals.

Even china has begun the process of deregulating forex supply chain away from the central bank.

If you don't understand the foolishness your useless Buhari is promolgating by criminalising forex then I suggest you log out from this thread.

Zombie idiot

[s]

CandyDiamond:

You obviously naive about economic matters, when have it become a crime to keep money at home if the owner wishes to do so, is it by force to keep money in the bank

[/s]

Just negodu mrs economist wey no even understand basic demand and supply chie! Hoarding dollar should be a crime just like hoarding petroleum products because it causes artificial scarcity and leads to increase prices. As long as it is the dollar it is by force so that thieves like Nwguata cannot be hiding it and forming estacode while manufacturers are looking for dollars to import raw materials.

FSBoperator:


Will you shut up!

In sane climes the govt has no right to tell their citizens where to store their wealth.

So you expect us to continue putting all our hard earned savings in a highly volatile non converterble junk currency?

If you must know forex supply in the West are met by both local banks and private individuals.

Even china has begun the process of deregulating forex supply chain away from the central bank.

If you don't understand the foolishness your useless Buhari is promolgating by criminalising forex then I suggest you log out from this thread.

Zombie idiot

mynd44 lalasticala see the sort of forum nairaland is becoming?

Stalwert:
[s][/s]

I am certain you don't have a cent talkmore of a dollar so why complain over a policy that doesn't affect you but those in power? Do you even know what hoarding is ? Do you know how it affects the stability of the naira?

its either u re a civil servant. 8-5 job. or u don't ve a kobo to ur name.

keep wallowing and displaying ignorance

For once the Senate actually does something positive, and yet here one sees a bunch of economic illiterates condemning it as a sign of corruption! Clearly many people on this forum have no idea what property rights are all about: as long as the foreign currency is earned legally, and is properly declared when brought into the country, it is not the government's business to legislate how much one can hold and how long to hold it for.

Currency clampdowns like this one are the stuff of desperate, badly-run regimes like those of Zimbabwe and Venezuela, not a mark of good leadership. Only fools would imagine that arbitrary seizure of private citizens' property would do anything other than worsen the forex shortage, as nobody in their right minds would risk bringing money into such a lawless and poorly run country.

Stalwert:


mynd44 lalasticala see the sort of forum nairaland is becoming?

Nah only to deflect to IPOB, GEJ and Biafra una sabi.

And of late una don become snitches for Moderators since you have nothing in defense of your satanic draconian apc govt.

Lolz

omohayek:
For once the Senate actually does something positive, and yet here one sees a bunch of economic illiterates condemning it as a sign of corruption! Clearly many people on this forum have no idea what property rights are all about: as long as the foreign currency is earned legally, and is properly declared when brought into the country, it is not the government's business to legislate how much one can hold and how long to hold it for.

Currency clampdowns like this one are the stuff of desperate, badly-run regimes like those of Zimbabwe and Venezuela, not a mark of good leadership. Only fools would imagine that arbitrary seizure of private citizens' property would do anything other than worsen the forex shortage, as nobody in their right minds would risk bringing money into such a lawless and poorly run country.

You dey mind those almajiri zombies posting crap above.

The CBN should explain it's role in granting a waiver to the likes of Garba Shehu who got a Whooping $800,000 at 199 to a dollar.

All these nonsense regulations will turn Nigeria and the already worthless naira to N.Korea.

[s]

chiefobdk:



its either u re a civil servant. 8-5 job. or u don't ve a kobo to ur name.

keep wallowing and displaying ignorance

[/s]


In your little prettiness you assume you have said something sensible?

Fix the economy. Make the exchange rate stable & transparent. It will reduce speculation & forex will come back to the banks. If not, Cbn is on a wild goose chase. People are also opening forex Accts outside Naija now. How do you clamp down on those?

Stalwert:
[s][/s]


In your little prettiness you assume you have said something sensible?

From your highly ignorant posts in this thread, it is obvious to all that you are a poor unemployed waif.

Stalwert:
[s][/s]

Just negodu mrs economist wey no even understand basic demand and supply chie! Hoarding dollar should be a crime just like hoarding petroleum products because it causes artificial scarcity and leads to increase prices. As long as it is the dollar it is by force so that thieves like Nwguata cannot be hiding it and forming estacode while manufacturers are looking for dollars to import raw materials.

God bless you.

Stalwert:


mynd44 lalasticala see the sort of forum nairaland is becoming?

I reported that post because ive made up my mind id refrain from those nonsense on the forum. It is obvious the mods have turned a blind eye to it.

It is well.

Progressive01:
God bless you.

amen

Progressive01:
I reported that post because ive made up my mind id refrain from those nonsense on the forum. It is obvious the mods have turned a blind eye to it.
It is well.

It is a pity someone is banking on these sort of bigotry to become something useful in life. ... but he will get served eventually.