jackcanfield:
Looks like a Good policy on the surface, but in Nigeria Corruption do fight dirty to the extend that Baba have stop saying he is fighting corruption.... well now we leave room for profiteering by the banks and high cost of sourcing Foreign Exchange from BDC..... the best thing is to have a water tight system that stops illegal flow of illicit funds out of the country... unfortunately the biggest culprits might end up been people in government and the Banks themselves. Overall what is important is being able to monitor the flow of funds whether legal or illegal .....We can have a system that stops direct cash exchange with BDC that way we can analyze data and know where the fund is going.

Nothing but facts

I am strongly in support of this.

It should be implemented. Lots of them have made mad millions from the business already though.

KazikageSama:


Naira will actually suffer for this move Sir.
1. Our banks are not capable of handling the volumes of daily FX exchanges over the counter yet. From experience, I can assure you that banks are still struggling with handling, reporting and managing Form As, Form Ms, BTA and PTA requests.
2. All countries have BDC (ALL), what most of them have just done is put the strategic managements under financial institutions. If would have been better if there is a roadmap to allow banks take over these BDCs first before this outright ban.
3. With the CBN's $100 FX limit on cards, expect people to hoard their dollars more which will put more strain on naira.
4. BDCs today are the number 1 agents of controlling (mobbing up and selling dollar into the economy), with most items off out Form M list, these guys are provide the dollars that most businesses use to import their foreign materials.

Emefiele for me has been the most questionable CBN Gov., his policies are questionable and his way of reasoning quite archaic. I'm certain he has some funny reasons behind this but I'm not sure it was well thought through.

I won't be surprised if we have to devaluate further to meet impending FX needs within the next couple of months.

I may be wrong and I pray I am

This is quite the challenge

mrphysics:

Most of them don't even understand anything. All they wait is to criticise even without thinking

It is not about thinking before criticizing it is about government policies going back and forth like a pendulum which makes people even criticize the government more.
The government don’t know their stand on the forex

This is basically what is called policy summersault

Them no want make we chop again o

Resurgent2016:


D bdcs fulfill gaps cbn does not even try to fill. What percentage of form M request does CBN fulfill and how long does it take?

They are just setting the country in for more inflation and more margins middlemen because bdcs that know their way will keep getting it.


D issue is bringing in forex and cbn has been the one discouraging inflows witg erratic policies that changes every week

I understand your point but we can’t keep feeding a snake and not expect it to consume us. The problem with us Nigerians is that we look at things short-term too much. We didn’t want to remove subsidies now look at where we are today, banking has evolved and still evolving tremendously. I’m not an economist but I know digital banking is outgrowing conventional models at a crazy pace currently. Nigeria has to get with the program for its own sake. As a highly corrupt nation simultaneously battling terrorism, inflow and outflow of funds has to be keenly monitored. BDCs have had a good run and it’s time to be flushed out because saying you want to regulate them wouldn’t work. You would recall that recently, many BDCs operators of northern origins were nabbed in UAE or so and are being tried. For a bigoted, nepotistic government like this to even approve of this, such cases must have been really bad. These guys have funded terrorism using their channels for almost two decades. Bro, the disadvantages outweigh the positives. There are several channels to transact nowadays on international levels where nature of transactions can be well understood by the authorities. I hope this overhaul is effectively done. The financial markets will heal itself as long as our institutions keep innovating.

abhosts:
So why not sell directly to banks so that customers can have a higher dollar spending limit of their Naira Cards?

Have you ever needed dollars for PTA or BTA? Then you will know the banks are also theives and part of the problem. They will never sell to you like the CBN mandated them unless you are well connected though.

Convert your airtime to cash... contact me @dantuyo@gmail.com

abhosts:
So why not sell directly to banks so that customers can have a higher dollar spending limit of their Naira Cards?

Who says they don’t sell to banks? They actually do sell to banks, bdc are financed through the banks. The banks are not just ready to pay the actual % of forex. They make more selling via deals with bdc instead of to the masses for N410. Banks are the real thieves working in hand with bdc

Ammishaddai:
The incompetence of this government is chasing away foreign investors willing to do business in Nigeria.

this forex whahala made me loss deal on a product from Ghana. Now Benin Republic has indirectly closed their border since over a month. Naija will understand what hunger means if in 6months time

Empredboy:
this forex whahala made me loss deal on a product from Ghana. Now Benin Republic has indirectly closed their border since over a month. Naija will understand what hunger means if in 6months time

I'm telling you

Vado:



Calm down oga. I’m a staunch critic of the government but this is long overdue. No forward thinking nation still does that shxt.

do we have forex reserve in our banks or CBN? we are consuming nation and so we need forex supplies to make purchases in the international market. The earlier we told ourselves the truth the better

frowland:


Hello bro, what is the purchasing power of those two currencies in micro level?
Okay, let me rephrase; Assuming I want to sponsor random people to barb their hair. How many people will #50,000 barb and how many people will $100 barb in USA?
What can $100 buy you in US compared to what 50k can do in Nigeria? ..and so forth.
These are the kind of questions that is conspicuously ignored when comparing economies.

Why are you comparing 50k naira and 100dollars?

Do unit by unit comparison.

For instance, if I want to sponsor random people to barb their hair. How many people would get a cut with 100 naira in Nigeria.

And how many people will get a cut with 100 dollars in America.

Stop being clever by half.

KazikageSama:


Naira will actually suffer for this move Sir.
1. Our banks are not capable of handling the volumes of daily FX exchanges over the counter yet. From experience, I can assure you that banks are still struggling with handling, reporting and managing Form As, Form Ms, BTA and PTA requests.
2. All countries have BDC (ALL), what most of them have just done is put the strategic managements under financial institutions. If would have been better if there is a roadmap to allow banks take over these BDCs first before this outright ban.
3. With the CBN's $100 FX limit on cards, expect people to hoard their dollars more which will put more strain on naira.
4. BDCs today are the number 1 agents of controlling (mobbing up and selling dollar into the economy), with most items off out Form M list, these guys are provide the dollars that most businesses use to import their foreign materials.

Emefiele for me has been the most questionable CBN Gov., his policies are questionable and his way of reasoning quite archaic. I'm certain he has some funny reasons behind this but I'm not sure it was well thought through.

I won't be surprised if we have to devaluate further to meet impending FX needs within the next couple of months.

I may be wrong and I pray I am

All countries have BDC, but is it Aboki that they have? The ones that will say any price they like at anytime based on who the customer is?

I have been to western countries where their BDC are operated in a disciplined manner, with firm prices displayed on boards, so every customer pay the same price. No selling at 500 to person A and then selling at 480 to person B and then at 510 to person C...

Why can't that be a possibility in Nigeria? Why must we be searching for Aboki in market, hotels and so on to buy and change dollar?

If you know how these guys cheat eh, and then who would you report the incident to?

Piptocoin:
A welcome change. Essential commodities should never be left to private individuals to control. It will help stabilize the supply and demand or flow of foreign currencies. The market would determine the value of foreign currencies and not some group of people who deliberately hoard them so as to rake in enormous gains by selling them above and beyond their actual market value. Good job, Emefiele.

Then while did the government sell dollars to the BDC in the first place. A government without a plan is a government without a future.

Grupo:


Why are you comparing 50k naira and 100dollars?

Do unit by unit comparison.

For instance, if I want to sponsor random people to barb their hair. How many people would get a cut with 100 naira in Nigeria.

And how many people will get a cut with 100 dollars in America.

Stop being clever by half.

I made reference to the purchasing power of money which you uploaded. Its basic economics.
You compared $100 to #50,000 and I told you to compare the purchasing power of what you posted instead.
Now that you want to delve into unit, sorry economics does not recognize units in trans currency comparisons. If it did, then all Nigeria need to do is to revalue by removing zeros and we are good as 100# = 100$ (Case study GHANA, case study2 IRAN).
But the question will still linger, WHAT WILL THAT $100 buy compared to the new revalued #100? If you still don’t get it, then I cannot help.

Emefiele is confused, was it now him who sold BDC license to House of rep members as hush contract?

Not he has ordered the suspension of BDC sale?

Na today day break for ya side emefiele. Most corrupt and useless CBN governor ever!!

Resurgent2016:


D bdcs fulfill gaps cbn does not even try to fill. What percentage of form M request does CBN fulfill and how long does it take?

They are just setting the country in for more inflation and more margins middlemen because bdcs that know their way will keep getting it.

D issue is bringing in forex and cbn has been the one discouraging inflows witg erratic policies that changes every week

It is not CBN's responsibilty to do this but the Banks

And it is the same Banks who are sabotaging the economy by feigning scarcity and going ahead to sell at the backdoor at the highsest bidder

I wanted to buy something at Yaba few weeks ago, an the shop owner told me high dollar rate is killing his business, i asked him how?

He said: "People sell dollar for 495-500, but go to banks they will tell you $540 something slighly more or less sometimes.

Do you know that some DISCOS and industries are now asking you pay them in dollars? And you know how much pressure that puts on the Naira alone.

The Naira was slightly stable around 2015 but the fear that Buhari was going to destroy things made people sell their N for $ to hedge against any kind of impending loss.

I even suggest Emefiele resigns so we can have someone with clarity lead the Apex bank.

Manasseh2018:
Please what's the full meaning of bdc's

Buhari Dollar Controllers

henrybomb:

It is not about thinking before criticizing it is about government policies going back and forth like a pendulum which makes people even criticize the government more.
The government don’t know their stand on the forex

Policies are not supposed to be cast on stone. And this is not about stand on forex.

If you trade Forex, you will know this is long overdue. Government should work towards creating a platform where citizens with genuine import businesses can access forex without going through BDC.

Even when government sent forex to banks, its still same bank people that will sell it at cheaper rate to BDC who in turn sell at a very high rate.

Your country is not a stable economic wise, so it shouldn't be shocking when government is trying alot of stuff in an unstable economic times.

zanshi:


It is not CBN's responsibilty to do this but the Banks

And it is the same Banks who are sabotaging the economy by feigning scarcity and going ahead to sell at the backdoor at the highsest bidder

I wanted to buy something at Yaba few weeks ago, an the shop owner told me high dollar rate is killing his business, i asked him how?

He said: "People sell dollar for 495-500, but go to banks they will tell you $540 something slighly more or less sometimes.

Do you know that some DISCOS and industries are now asking you pay them in dollars? And you know how much pressure that puts on the Naira alone.

The Naira was slightly stable around 2015 but the fear that Buhari was going to destroy things made people sell their N for $ to hedge against any kind of impending loss.

I even suggest Emefiele resigns so we can have someone with clarity lead the Apex bank.

Banks dont directly sell dollars, they do through the various windows which are all managed by CBN.

As for BDCs, this is a capitalist economy, anytime demand far outstrips supply, there is bound to be demand-driven pricing, which is simply what is driving the prices. BDC will not sell at 410 because he bought at 380 when there is a market that will buy at 500.

Secondly why do lots of people even companies meet bdc and drive up demand? Simply because the cbn through its various windows does not meet orders and has excluded some sectors and companies through poorly thought policies. These unmet demand is now being funneled to the bdc market causing huge price disparity.

Lastly , a lot of individuals and companies are not bringing in their foreign funds through the official channel because of poor policy setting by the CBN.

The current situation is largely 90% cbn and less then 10% to the bdc.

Emefiele appear incompent as his boss in aso rock. He should resign and someone with a track record dealing stabilislling a crisis economy even if it an expatriate should be appointed

lawalosky:
This operator are contributing immensely in devaluation of our naira.
.
.
Everyday you see them sitting in Sheraton hotel road with baban riga uselessing our naira.

A short story

KazikageSama:


Naira will actually suffer for this move Sir.
1. Our banks are not capable of handling the volumes of daily FX exchanges over the counter yet. From experience, I can assure you that banks are still struggling with handling, reporting and managing Form As, Form Ms, BTA and PTA requests.
2. All countries have BDC (ALL), what most of them have just done is put the strategic managements under financial institutions. If would have been better if there is a roadmap to allow banks take over these BDCs first before this outright ban.
3. With the CBN's $100 FX limit on cards, expect people to hoard their dollars more which will put more strain on naira.
4. BDCs today are the number 1 agents of controlling (mobbing up and selling dollar into the economy), with most items off out Form M list, these guys are provide the dollars that most businesses use to import their foreign materials.

Emefiele for me has been the most questionable CBN Gov., his policies are questionable and his way of reasoning quite archaic. I'm certain he has some funny reasons behind this but I'm not sure it was well thought through.

I won't be surprised if we have to devaluate further to meet impending FX needs within the next couple of months.

I may be wrong and I pray I am

Spot on. Cbn has been demonising bdc when the situation is largely that failure.

Too many erratic and poorly though policies have driven away companies and individuals from repatriating funds. Cbn no longer has the excuse of poor oil prices and cant blame importers since officially they have excluded many of them from the official windows.

I want to pay common $200 dollars , I have to go and look for a middleman to facilitate it as cards are pegged to $100, why wont the grey market dictate prices?

Welcome development... Bdc contribute to devaluation of currency

lawalosky:
This operator are contributing immensely in devaluation of our naira.
.
.
Everyday you see them sitting in Sheraton hotel road with baban riga uselessing our naira.

Help me with a few points on how they help in devaluing the naira. Just for the sakes of my knowing...... Not here to troll.

KazikageSama:


Naira will actually suffer for this move Sir.
1. Our banks are not capable of handling the volumes of daily FX exchanges over the counter yet. From experience, I can assure you that banks are still struggling with handling, reporting and managing Form As, Form Ms, BTA and PTA requests.
2. All countries have BDC (ALL), what most of them have just done is put the strategic managements under financial institutions. If would have been better if there is a roadmap to allow banks take over these BDCs first before this outright ban.
3. With the CBN's $100 FX limit on cards, expect people to hoard their dollars more which will put more strain on naira.
4. BDCs today are the number 1 agents of controlling (mobbing up and selling dollar into the economy), with most items off out Form M list, these guys are provide the dollars that most businesses use to import their foreign materials.

Emefiele for me has been the most questionable CBN Gov., his policies are questionable and his way of reasoning quite archaic. I'm certain he has some funny reasons behind this but I'm not sure it was well thought through.

I won't be surprised if we have to devaluate further to meet impending FX needs within the next couple of months.

I may be wrong and I pray I am

I support you idea of a roadmap before phasing out. But, this people have made banks redundant. Our banks performed these roles effectively with minimal hiccups even when fintechs haven't sprouted up this much. These guys are conduits for terrorism funding, money laundering and all. Nigeria has always been a perculiar country in the sense that roadmaps are often filled with bumps, they harly works. Vision 2020 was a roadmap, here are we today? Subsidy removal was a roadmap, how far today? BDCs have outlive their usefulness in a digitized financial industry of today. It archaic as practiced here. I trust the banks will evolve and innovate well enough to help us meet our present needs. These cartels gotta go.

Abeg wetin e mean?

This govt, Always looking for who to blame
for their failure in every sector of
our nationhood..❎❎❎

Vado:



Calm down oga. I’m a staunch critic of the government but this is long overdue. No forward thinking nation still does that shxt.

The dual nature of our bdc cbn xan never allow for proper stabilisation of the naira.

How can cbn say the rate is 412 and you reach bank and they start telling you story when you want to buy meanwhile aboki is outside the bank to sell to you at 500.

Somebody is chopping that 78 naira on every dollar which devalues the naira even more. I have never understood why it works like that.


Now the dollar will be even more scarce and the black market price would rise worsening the naira value.


Maybe the naira is about to take another hit sef. Too bad.


Make I see abokifx for current price range

Goke7:


Soludo did the same but was later reversed when sanusi took over.

How I wish it can never be undone, why must we have different rates as the official and black market, who does that?

As in, it only makes sense to those who are reaping and plundering nigerian currency for thier benefit.


The concept is completely illogical