This followed the suspension of the Wholesale Dutch Auction System (WDAS) at the official foreign exchange market.

It said that the RDAS would allow only customers of deposit money banks to buy foreign exchange at the CBN through their banks.

This is against the WDAS where the deposit money banks bought foreign exchange at the CBN on their own accounts and in turn sold to their customers.

“The re-introduction of the RDAS is expected to prevent round tripping of foreign exchange purchased at the CBN official window to unauthorised channels.

“Also, a circular has been issued mandating all deposit money banks to redeem all inward money transfers in naira to the recipients at the prevailing inter-bank foreign exchange rate.

“This is in line with best practice,’’ it said.

- See more at: http://www.vanguardngr.com/2013/10/cbn-bans-importation-foreign-currency/#sthash.6L7TlUme.dpuf

Is the Nigerian Government broke?

i believe that these policies are best for the economy.

they want to spoil show.

Why will i even want to collect dollars??will i spend it in d normal naija market?i get so irritated when i go to get my money n been asked if i want dollars or naira.

Rehil: Why will i even want to collect dollars??will i spend it in d normal naija market?i get so irritated when i go to get my money n been asked if i want dollars or naira.

why won't I ?

First bank told me 146

I took it to a road side aboki and got a 158 deal

Nigeria is the highest importer of dollars in the world,which is very alarming.
It's good that CBN is finally reversing that anomaly.

i think CBN is trying to reduce the demand for Dollars which is doing more harm to the naira ..Good one

this is going to affect import and export trade. Except those bank can guarantee a decent exchange rate mallams do give us.

gny kelly: this is going to affect import and export trade. Except those bank can guarantee a decent exchange rate mallams do give us.

I am sure you don't expect the banks to give you the same rate as those mallams.

I have to protest this! I didnt open a dom account to receive naira!

May God help the Nigerian economy

Good move. This will create healthy competition among banks and will hopefully flaten the rate between official and black market rates. Banks with better rates will curry most western union transactions.

In the same vein, RDAS will ensure transparency and accountability in dollarised transactions. The only problem I foresee is that transactions may take longer to consumate.

I have a question; should I stop sending money via Western Union now? If I send $400 US Dollars will they not receive the equivalent in Nairas? Damn, I am confused and putting money transfers on hold immediately until I get a satisfactory reply.

AnOlderAmerican: I have a question; should I stop sending money via Western Union now? If I send $400 US Dollars will they not receive the equivalent in Nairas? Damn, I am confused and putting money transfers on hold immediately until I get a satisfactory reply.

They won't get paid in dollars in Nigeria. Your family get paid in Naira equivalent based on current exchange rate.

They aren't family. Well, not yet. They are loved as if family, but, they're friends. Thanks for taking the time to explain.

Good for the economy sha but a lil hitch for the beneficiary and abokis wey dey chop through buying dollars.

payless: They won't get paid in dollars in Nigeria. Your family get paid in Naira equivalent based on current exchange rate.

not really the equivalent

banks make profits from these exchange rates too

it all boils down to how much the bank will buy/sell the dollar

Whichever way, the banks are rippers

aboki all the way

they should find another means to fix the economy

Its true,recievd email messages from my bank(s),another CBN move to stabilize the naira. all those hausas exchangers,what would be their fate.This would destroy their biz and might lead to other things.

As for what the exchange rate,should be,the CBN should provide forward guidance or a rate band to avoid exploitation,as the banks now have a monopoly.

A midway rate,between the cbn rate and the Banks mastercard/Visa foreign transaction rate would be appropriate.

lagbaja: Banks with better rates will curry most western union transactions.
.

I think not.
You need to have a savings account(GTB and a few demands at least 3 months old current account) with any bank before you can receive WU. So,at the end of the day,banks now have the upper hand as most customers won't have a choice.

@Topic,banks exchange rate is ALWAYS miserable. I reckon its better to have the sender convert to Naira before sending.

ifyalways:
I think not.
You need to have a savings account(GTB and a few demands at least 3 months old current account) with any bank before you can receive WU. So,at the end of the day,banks now have the upper hand as most customers won't have a choice.

@Topic,banks exchange rate is ALWAYS miserable. I reckon its better to have the sender convert in Naira before sending.

Thank you!

NL is full of folks who don't know what it takes to open a dom account let alone a letter of credit.. Take a look at yourself right now and tell me how many Made in Naija things u have on... Ur clothe, shoe, phone, belt, pants, bra.. all made outside Naija. Why can't demand for $ be on the rise?

fyneguy: I have to protest this! I didnt open a dom account to receive naira!

^^^I share your sentiments on this.....very annoying!

To my own understanding, the Central Bank of Nigeria, is trying to use these measures to stabilize the nations economy, buy way of making it compulsory for every one who wants to collect Wu to collect it in naira, I think this is a welcome development, and it will help to strengthen the nations economy.

Money by any curency is stil money provided it's not Counter....... , i mean e no dy wash.

In theory its a good move, but in practice it will be detrimental to genuine business men.

Take for example i am into importation. If i go to a bank to obtain dollars to import goods, apart from exhaustive bureaucratic bottle necks, i am most probably going to be told no dollars now, come back next week. So i would be forced to patronize my favourite mallam at about N160 to the dollar. But if i am to be paid in dollars for the same goods, the banks would give me ridiculous exchange rate like N150 to the dollar.

So would it not make better business sense to sell my dollars to alams at N157 and buy from him at N160?

Actually this might be a development in a way. . But most things or lemme say everything Nigerias do as a hidden agenda for that .. Anyway lets watch

Consumers pls have your sender to remit to you in naira.

Importers should wire out at bank rate afterall na chinko and turkey we dey import from. Why dollars ?
Its for good of our economy and glory of naira.

I hate to see dollars in my country cos I dont see naira when I go emerika.

I lost faith in the Nigerian Banking sector ages ago but at this new policy and if implimented,that would mean someone up there has brains.

Good... I also hear that d CBN has banned d importation of Dollars (I was shocked this week to hear that Nigeria was becoming d largest IMPORTER of Dollars in d world. Imagine that!!). People now use Dollars as though they were in America- to pay Schools, pay rent, to shop, etc. Certain NONSENSE need to stop in this nation

Gud to know