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

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

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

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:


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.

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

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

Passingshot and omenka the politician economics can come and defend this

Infinitikoncept:

Passingshot and omenka the politician economics can come and defend this

My brother, don't mind those ignorant bats.

We are talking of facts and real effects on businesses and the masses, these political jobbers thinks everything is about their idol.
Gosh!

Then this is nonsense.

I've been having this bad headache trying to understand this whole thing in layman terms since it started but no one has really explained like you did @stagger thank you man...

Lalasticlala kindly send this to the front page

Nigeria my country

What is going on nah

Nice job Stagger.
Broken it down clearly in layman terms.
Call for Lalasticlala seconded...let's educate people...

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

Don't think you're getting anything that high even if it stays that way.

Stagger is a good financial analyst

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.

thanks bro. Finally i don understand all these inter bank jargons

dav8id:


Nigeria my country
What is going on nah

Did u actually believed that the dollar will sell at 260 naira from 370 all because cbn brought out a policy aimed at benefitting only the very rich elites

lalasticlala

Just out of curiosity, @stagger, do you have confirmation of the spread that banks will put on the interbank rate? And what is your source? Talking to knowledgeable forex people and I hear maximum spread on the interbank rate will be N10.

Wao

Stagger, thanks for your explaination, you'll make a good lecturer/customer care agent. Thumbs up for you.

The main people that Nigerians are looking at are the manufacturers who will need to import raw materials to produce goods and fuel importers. These are the people banks will sell to at below 300 naira per dollar because they will buy in millions and these are the people that will impact more on Nigerians . Those of you who are buying about 10,000 dollars to import toothpick and stuff should manage the prevalent rate.

hmmm I'm quite confused who can break it down for me?

buharisbae:
hmmm I'm quite confused who can break it down for me?

Hm, what confuseth thou? I think that is only possible if you checked this thread for entirely different reason. Just go over the thread from the beginning, especially this post:

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.

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

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

hmmmmm...no comment

Might still take some time and since CBN said interbank, Hmmmmm no comment.

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.

I owe you one bottle of cold wine
Amazing analysis...
So are you suggesting that the policy is a scam?

k

Scam policy.... Scam Government

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.

Best explanation so far.