The Central Bank of Nigeria (CBN) said its foreign exchange utilisation records for banks showed a disbursement of $1.1 billion in November 2016.

However, of the 4,328 transactions in the period under review, five banks dominated the deals with 2,892, representing about 67 per cent of the total activity.

The development showed that CBN, despite its quest to increase reserves’ profile, sustained its forex market interventions, as a way to moderate Naira depreciation that is induced by demand pressure.

It also showed that while all the bank’s are participating in the forex market transactions, the bulk of the deals are mostly traded by few banks, particularly the big ones.

The banks with highest utilisation were First Bank of Nigeria, with 1,039 deals; Zenith Bank, 706; Stanbic IBTC, 397; Standard Chartered Bank of Nigeria, 389; and First City Monument Bank, 361.

Out of 25 financial institutions- commercial and merchant banks involved in the transactions, only 1,436 deals were left for the remaining 20 lenders.

A currency strategist in one of the banks with international operations confided in The Guardian that while the volume is commendable given the country’s earning capacity, it is still a far cry from industry demand.

Meanwhile, the apex bank yesterday asked lenders to bid in a special currency auction due soon, in efforts to clear backlog of demands from businesses.

The backlogs are particularly for fuel importers, airlines, raw-materials producers, and makers of agricultural chemicals and machinery for manufacturers.

In December 2016, CBN sold about $1 billion on the forward market to tackle the backlog of dollar demands, in an effort to support production and fulfill its pledge to the real sector operators.

Research analyst at FXTM, Lukman Otunuga, noted that CBN is aware that the nation still remains exposed to both external and internal risks, particularly exchange rate, despite improved outlook, which should keep the CBN on high alert.

“It must be understood that the cause behind the incessant rise in consumer prices is the disparity between the official and black market exchange,” he said.

http://t.guardian.ng/news/five-banks-dominate-cbns-1-1b-forex-disbursements/

Lalasticlala Mynd44 seun Dominique

Forex experts kindly translate to English.

I'm not surprised Zenith has the highest volume. Wasn't Emefiele the former GMD of Zenith bank?

Saying the disparity between official rate and black market rate is the cause of increasing cost of goods, doesn't that also mean banks still sell bulk of the currencies to BDC against instruction of CBN?

This Grammar too much for me. somebody please KOWASHIATE

...

pressplay411:
Forex experts kindly translate to English.

I'm not surprised Zenith has the highest volume. Wasn't Emefiele the former GMD of Zenith bank?

Saying the disparity between official rate and black market rate is the cause of increasing cost of goods, doesn't that also mean banks still sell bulk of the currencies to BDC against instruction of CBN?

I CONCUR TO YOUR PROPOSITIONS..

It's a pity no one is regulating this shlt. The banks are selling to BDC for profits.

What a country!

So we should fly?

Another scam

Tires of this story every time

First bank or zenith. READ AGAIN but this time slowly.


quote author=pressplay411 post=53135943]Forex experts kindly translate to English.

I'm not surprised Zenith has the highest volume. Wasn't Emefiele the former GMD of Zenith bank?

Saying the disparity between official rate and black market rate is the cause of increasing cost of goods, doesn't that also mean banks still sell bulk of the currencies to BDC against instruction of CBN?[/quote]

pressplay411:
Forex experts kindly translate to English.

I'm not surprised Zenith has the highest volume. Wasn't Emefiele the former GMD of Zenith bank?

Saying the disparity between official rate and black market rate is the cause of increasing cost of goods, doesn't that also mean banks still sell bulk of the currencies to BDC against instruction of CBN?

yes sire CBN sells to bank at say $1-302 while bank sells to bdc at a much higher rate or they sell to you at a much higher rate if you use your debit card outside.

if you look at the quarterly reports from the banking sector, Forex has been their major thing boosting revenues. God dey

And the customee that bought most of the dollar is...


Is.......



Dangote

Yet they won't give us form A.

Please somebody tell me what these guys are talking about
I only understand Structural mechanics, Quantifying etc but this shit... Please come again




We are Engineers!!!!!!!!!!

CBN sells directly to the BDC operators. The dollar is collected through abcon, the umbrella body for the bdc operators and not through the bank. The bank only process the bid. The list of qualified BDC is sent weekly by the same CBN. In essence, what goes to each bdc is determined by CBN and not commercial bank. So, if there is any disparity the same cbn should take full responsibility.

pressplay411:
Forex experts kindly translate to English.

I'm not surprised Zenith has the highest volume. Wasn't Emefiele the former GMD of Zenith bank?

Saying the disparity between official rate and black market rate is the cause of increasing cost of goods, doesn't that also mean banks still sell bulk of the currencies to BDC against instruction of CBN?

Bros Emefiele has nothing to do with zenith having the highest volume.

Banks were asked to send in bids for this since like two weeks ago and also asked to send in to clear back log of transactions for target sectors. A lot of of these banks didn't comply and we're sending in for back log of invisible transactions (school fees etc) and those bids were dropped. The results of the bids are on the CBN website for all to see and also published in the national dailies

We really need to stop all this sentimental posts

God bless Nigeria.

Yaasir:
CBN sells directly to the BDC operators. The dollar is collected through abcon, the umbrella body for the bdc operators and not through the bank. The bank only process the bid. The list of qualified BDC is sent weekly by the same CBN. In essence, what goes to each bdc is determined by CBN and not commercial bank. So, if there is any disparity the same cbn should take full responsibility.

What are you saying? Pls read the post again and edit your comment.

Do BDC operators process Form M?, do they do forward and spot FX transactions?


Do they open LC and Bills for collections for customers that want to import raw materials and machinery for customers?

Oh my.........God help us in country!

pressplay411:
Forex experts kindly translate to English.

I'm not surprised Zenith has the highest volume. Wasn't Emefiele the former GMD of Zenith bank?

Saying the disparity between official rate and black market rate is the cause of increasing cost of goods, doesn't that also mean banks still sell bulk of the currencies to BDC against instruction of CBN?

Wow, so from those figures Zenith bank actually had the'highest' volume? Your arithmetic teacher is in trouble.

ok

I knew GTBank Wont be there.Not after my experience with them, once the beneficiary gets the funds or I get it back, I am moving my DOM account to first bank.

joansteff:
First bank or zenith. READ AGAIN but this time slowly.


quote author=pressplay411 post=53135943]Forex experts kindly translate to English.

I'm not surprised Zenith has the highest volume. Wasn't Emefiele the former GMD of Zenith bank?

Saying the disparity between official rate and black market rate is the cause of increasing cost of goods, doesn't that also mean banks still sell bulk of the currencies to BDC against instruction of CBN?

I guess Op edited. Last I checked FBN wasn't even on the list which I found surprising.

Ok

Well this information is good, but it is stale. A better information would have been to let the public know how much fx will be disbursed to the banks so that the banks cannot claim they don't have forex.
My thoughts.

whitetiger511:
Yet they won't give us form A.

. Or PTA. Have applied to nearly all the banks on that list.

pressplay411:
Forex experts kindly translate to English.

I'm not surprised Zenith has the highest volume. Wasn't Emefiele the former GMD of Zenith bank?

Saying the disparity between official rate and black market rate is the cause of increasing cost of goods, doesn't that also mean banks still sell bulk of the currencies to BDC against instruction of CBN?

its first bank not zenith bank.

This is Nigeria where anything goes. It's so unfortunate that none of the banks listed allow average Nigerians to make dollar transaction with their cards. Yet, they gain so much from BDC operations.

Firstbank, always everywhere

deenee:




Bros Emefiele has nothing to do with zenith having the highest volume.

Banks were asked to send in bids for this since like two weeks ago and also asked to send in to clear back log of transactions for target sectors. A lot of of these banks didn't comply and we're sending in for back log of invisible transactions (school fees etc) and those bids were dropped. The results of the bids are on the CBN website for all to see and also published in the national dailies

We really need to stop all this sentimental posts

God bless Nigeria.

Well said but you know I'm only stating the obvious, sentiments aside.
Emefiele should be fired for abuse of that office as CBN governor.
If this country was your private entity, apparently even you would have fired him already because the country losing millions of dollars daily and going into the drains and this man is either clueless about fixing it or as I believe he's a major part of sabotaging the economy just to frustrate this administration. I mean GEJ handpicked him to that office for chrissakes.

whitetiger511:
Yet they won't give us form A.

asin ehn I need that form like ystdae

I dont understand this oo

Translate please!!!

http://talkgeria.com/topic/fg-releases-n72bn-for-lagos-ibadan-rail-line/

pressplay411:


Well said but you know I'm only stating the obvious, sentiments aside.
Emefiele should be fired for abuse of that office as CBN governor.
If this country was your private entity, apparently even you would have fired him already because the country losing millions of dollars daily and going into the drains and this man is either clueless about fixing it or as I believe he's a major part of sabotaging the economy just to frustrate this administration. I mean GEJ handpicked him to that office for chrissakes.

Point taken but we need to look at this in context.

What else do you want Emefiele to do? To sell dollar that is not available or do you think he has one dollar printing machine in his house where he can just go and print dollar?

The dollars we have now is even from the inflows that come in from export proceeds and oil revenue.

Prior to now we have largely enjoyed because of the rise in oil prices but oil prices are not stable again so that source of inflow is really threatened. This is why the CBN is aggressively encouraging people to produce for export

Even now that oil is above 50 dollars Nigeria has not been able to meet our OPEC daily quota of 2.2m barrels per day because of the militants in the Niger Delta who are blowing up pipelines. So will you also blame Emefiele for that too.

The 1.2 billion dollars sold through this special auction is the excess from the increase in crude prices for the month of December. To be sincere the man is trying and I think we need to give him kudos for that

Our trade deficit alone is another thing because Nigerians love to import a lot and this basic truth is this

If we want the dollar situation to abate...tell the militants to stop blowing up pipelines so we can meet our daily production quota and enjoy the excess from the increasing crude price now

Minimize imports and try to use local alternatives

Encourage Nigerians to export to reduce the trade deficit. It's a shame that even the commodities export market in Nigeria is been dominated by the Chinese now.


Stop all forms of rent seeking activities around the dollar

And for your information some of the banks whose names don't appear in the post have erred because some banks buy the dollar and end up selling to the black market people who in turn sell to politicians and other importers that want to bring in good on the banned list of items. Are you also going to blame Zenith and Emefiele for that? I know some banks have been banned from the special auction window

I rest my case here. God bless Nigeria.

For those looking for PTA. You can easily get from the travellex office at MMIA at official rate but you must provide authentic documents and it will only be sold on the day of travel not before. I have gotten from them twice between October and now. Bearing in mind that you are only entitled BTA/PTA four times a year.