arsetalks:
But you were very interested when the price was ridiculously high abi?

989900:


Please note that this temporary measure, does not affect electronic transfer of funds into or from your domiciliary accounts and, you will continue to have access to foreign currency cash withdrawals from your account.

Faraidi:
shut ur dirty mouth idiot,do u know the so called refinery was started durning his time? How did he distroyed the ecomony? Dollar was very low durning his time even the 209 he left it was the highest. Conpare to now!

patrickmuf:
You no mention me abi? Next time I go vex for you...Wailers won't like these one at all...

NgeneUkwenu:
20 Hours electricity.
Working Refineries.
Working EFCC
Working Economy
Corruption Decline by 70%
Decimation Of Boko Haram.

All the above mentioned feats were achieved without moving the gear stick to 2!

Baba, Long May You Work Slowly!!!

God Bless Muhammadu Buhari!

lalasticlala, Ishilove Can We show some love to Baba! At least you guys were updating us when Naira was going up against the dollar!

jjman2322:


You dont get it do you? explain how you will get electronic transfer of funds into your domicilliary account.. Lets imagine you have N10,000,000 and need to send some funds abroad to family, friends, etc.. Your naira is useless and the mallam cant wire USD into your dom account since dollars cant be sent across banks in Nigeria... People are still confused about this policy.. Its crippling for legitimate business men.

DOM accounts has no yearly LIMIT or the $300 dollar/day limit... It was easy to deposit cash into DOM account and fund it.. Now the only way to get money from DOM ACCOUNT is through an electronic transfer...

For the donkey who complained about buying a $20,000 car for my child. I hope you realize there are millions of Nigerians who are rich and have legitimate businesses. (Car dealers, hotel owners, manufacturers, restaurants, etc) There are many people who make money 100% legit and dont deal in Oil subsidy fraud or government contracts.

Maybe you want your child to use a bus, however some parents see no problem in buying their child a $20.000 or $50,000 dollar car.

I dont even want to get into the medical aspect of this rule.

This just happened to someone i know today:

His dad needs to go to abroad for a procedure(hip replacement), he got the letter from the hospital today that the total bill is around $62,000 or thereabouts. He has naira, he needs dollars asap to pay the hospital deposit upfront and also be able to wire the rest. He asked me if I had dollars sitting abroad to give him and I said no.

I told him goodluck getting the funds to the hospital in the next 3 months He's gonna need all the luck he can get.

CBN is telling people there are channels for sourcing funds for legitimate business. ALL Manufacturers already know and use this. The only problem is that unless you're a manufacturer or an importer, you wont know that CBN does not have enough dollars, and its taking months to get funds from them..

Instead of CBN to use the dollars to settle bills for importers and manufacturers, they are using the funds to shore up the reserve. What is the point of the reserve if companies are closing and people are getting laid off.lol stupid country

onatisi:
Oga please kindly enlighten me more. Please if I have 10000 dollars and I need a make a payment abroad, now that cbn has blocked Dom acc direct funding with dollars, how do I transfer the money abroad? What other bank processes can one follow and how fast is it?

SeverusSnape:
I will comment when they become equal.

jjman2322:


Thats the problem now. You need to open an LC , or ask the company for Bill for collection (credit if they trust you)

Be prepared to wait months as LC is very complicated and CBN isnt giving cash for bills.

Your only solution is to find someone abroad to send the money to them, and you give them naira locally, or you take that money as cash and buy your plane ticket and go visit the company.

onatisi:
this is original pure undiluted wahala. What sort of nonsense policy is this. And I was even initially applauding the cbn governor. Nigerians will suffer for this because the cost of doing business will rise and likewise the cost of transactions which will nullify the naira gain but increase the cost of goods,products and services.

NgeneUkwenu:




https://www.thecable.ng/n209-1-appetite-dollars-falls

derecho:
Sir,was that your deduction?
To help you sir, what we want to see is what this mean to the average Nigerian. Good wine needs no bush abi na propaganda

arsetalks:
What it means to the masses is low cost of goods. People who import goods will be able to sell for cheap as they are buying for cheap too.

People like us who earn and transact in dollar will benefit in many ways.

Let me give you an example

My mentee ( a friend/mentee) needed to buy a site ( an Arsenal blog) in July last year, he was quoted $6000. I told him not to buy it. Simply because although it is worth it, he does not have the money and the seller is just quoting price, he doesn't know the value of his website.

We dragged out negotiation, he ended up buying it few weeks ago for $2500 but unfortunately the poor exchange rate ate up what would have been a very significant gain.

This is exactly what happens in all businesses. It will have a domino effect all every aspect of the economy.

mavinc4u:
This is suppose to be a good news but seriously it is not. I wonder why people find it difficult to decode what is happening. The official rate is still N199 so what is the fuss. All these rates are only falling at the parallel market where you can buy but cannot deposit into your bank account. Infact the bank card rate has gone up as a result of this. onye di ya si na akwa oria gbakee nwa ya anwuo, onye ahu ogbakeela. (A woman that her husband recuperated from an illness and her son dies, has that woman recovered from shock)? Even the almighty stanbic that was charging the least N199.5 in using bank card has gone up to N207. You guys should try and decode before making noise.

jjman2322:


people are applauding him because they don't get the implications..

No single manufacturer or importer is applauding him because they GET the implications, implications which include higher cost of production, scarcity of raw materials, delay in sourcing parts, and possibility of shutting down.

onatisi:
let's assume your friend has bought the site now with the funds available in his Dom acc and he has exhausted it but see another fantastic offer that requires immediate transfer of 3000$ ,please how will your friend fund his Dom account in order to complete the transaction?

onatisi:
I am really learning from your posts.but considering this policy now,how long will it be before Nigerians starts feeling its negative impact? Secondly,can one go to neighboring countries to transfer

onatisi:
let's assume your friend has bought the site now with the funds available in his Dom acc and he has exhausted it but see another fantastic offer that requires immediate transfer of 3000$ ,please how will your friend fund his Dom account in order to complete the transaction?

arsetalks:
we don't use dom accounts or Nigeria banks. He uses his friend in Canada, I have a UK bank account. Technically the whole exchange thing doesn't really affect us much but we are humans, naturally we convert the value to naira in our head.

He was happy with the bogus exchange rate but I was not because I know we will spend whatever we make in Nigeria in the end and because I have couple of writers who get paid in dollars. Plus I love books and use amazon to get them.

And as for dom accounts, I am a Beninose/Nigerian, I use Benin to receive funds before because escrow.com doesn't/did ( not sure if they do now) accept Nigeria, in Benin, they pay me not in dollars but in CEFA. And when I was to send money, I pay in CEFA and they convert it.

arsetalks:
What it means to the masses is low cost of goods. People who import goods will be able to sell for cheap as they are buying for cheap too.

People like us who earn and transact in dollar will benefit in many ways.

Let me give you an example

My mentee ( a friend/mentee) needed to buy a site ( an Arsenal blog) in July last year, he was quoted $6000. I told him not to buy it. Simply because although it is worth it, he does not have the money and the seller is just quoting price, he doesn't know the value of his website.

We dragged out negotiation, he ended up buying it few weeks ago for $2500 but unfortunately the poor exchange rate ate up what would have been a very significant gain.

This is exactly what happens in all businesses. It will have a domino effect all every aspect of the economy.

arsetalks:
First educate yourself. Learn how to spell during. While at that, learn not to be so biased.

jjman2322:


You dont get it do you? explain how you will get electronic transfer of funds into your domicilliary account.. Lets imagine you have N10,000,000 and need to send some funds abroad to family, friends, etc.. Your naira is useless and the mallam cant wire USD into your dom account since dollars cant be sent across banks in Nigeria... People are still confused about this policy.. Its crippling for legitimate business men.

DOM accounts has no yearly LIMIT or the $300 dollar/day limit... It was easy to deposit cash into DOM account and fund it.. Now the only way to get money from DOM ACCOUNT is through an electronic transfer...

For the donkey who complained about buying a $20,000 car for my child. I hope you realize there are millions of Nigerians who are rich and have legitimate businesses. (Car dealers, hotel owners, manufacturers, restaurants, etc) There are many people who make money 100% legit and dont deal in Oil subsidy fraud or government contracts.

Maybe you want your child to use a bus, however some parents see no problem in buying their child a $20.000 or $50,000 dollar car.

I dont even want to get into the medical aspect of this rule.

This just happened to someone i know today:

His dad needs to go to abroad for a procedure(hip replacement), he got the letter from the hospital today that the total bill is around $62,000 or thereabouts. He has naira, he needs dollars asap to pay the hospital deposit upfront and also be able to wire the rest. He asked me if I had dollars sitting abroad to give him and I said no.

I told him goodluck getting the funds to the hospital in the next 3 months He's gonna need all the luck he can get.

CBN is telling people there are channels for sourcing funds for legitimate business. ALL Manufacturers already know and use this. The only problem is that unless you're a manufacturer or an importer, you wont know that CBN does not have enough dollars, and its taking months to get funds from them..

Instead of CBN to use the dollars to settle bills for importers and manufacturers, they are using the funds to shore up the reserve. What is the point of the reserve if companies are closing and people are getting laid off.lol stupid country

989900:


[i]This is my interptetation of it (stop me when I'm wrong): If you need to wire dollars overseas (say $10,000), simply take your $10,000 to the bank, prove genuineness of intent, and your $10,000 will be wired to it's destination thru your account.

jjman2322:


Wrong information. To wire money abroad, the dollars(cash) need to be accepted by the bank first, and they are not doing it anymore.

So no, you can't take $10,000 cash to GTBANK and have them wire it abroad.. Those days are gone.

The big issue here is the banks dont want your USD Cash anymore. They can't give it to the CBN and its useless to them..

If they take your $10,000 what will they do with it? CBN wont accept or convert it for them..

So nah, you cant deposit to your dom account. If you have any existing funds, depending on the bank you will be able to wire it off, but once its done you cant make any new cash deposits.

Please note that this temporary measure, does not affect electronic transfer of funds into or from your domiciliary accounts and, you will continue to have access to foreign currency cash withdrawals from your account.

jjman2322:


Wrong information. To wire money abroad, the dollars(cash) need to be accepted by the bank first, and they are not doing it anymore.

So no, you can't take $10,000 cash to GTBANK and have them wire it abroad.. Those days are gone.

The big issue here is the banks dont want your USD Cash anymore. They can't give it to the CBN and its useless to them..

If they take your $10,000 what will they do with it? CBN wont accept or convert it for them..

So nah, you cant deposit to your dom account. If you have any existing funds, depending on the bank you will be able to wire it off, but once its done you cant make any new cash deposits.

NaLaugh:


The fact is that the official exchange rates (about $1 = N199) hasn't changed for many months.

The black market is a different ball game, and your mallam can make predictions only as low as the official rate.
Then again, he will make zero profit at official rate, so.. you be the judge.
He and his colleagues can directly influence black market rates. However, they have little to no effect on official rates.

This means any predictions of a sharp rise in the Naira's value from N199 to N160/$ within the next few months is highly improbable.

jjman2322:
I see there arent a lot of business men here or company owners.. Let me explain how things work before you keep applauding the CBN:

#1. In the USA, you dont need to deposit in other currencies because you can WIRE OUT YOUR USD to any country and they will convert it to their local currency.

What this means is that if im in USA, I have $50,000 USD in my account, i Can send that money to Japan, China, europe, etc.. This is not Possible with our NGN.. You can't wire Naira outside Nigeria without converting it first.. So the CBN governor is a donkey for comparing both countries.

Our currency is useless outside Nigeria. Some of you that have traveled out know you can't convert naira in UK, USA, China, however my dollars are good all over the world.

#2. This policy will lead to more unemployment. Lots of companies buy spare parts, machines from China, India.. Let me give you an example.

Say i need a new part for my machine, I get quoted $5,000 USD by a company in China.. The quickest most reliable way to pay them is to buy black market and deposit the cash in my DOM ACCT, then wire it off, and in 2 days they have shipped my part.

With the new policy changes, there is no easy way to pay for these parts.. LC's and Bill for collections are taking 3-4 months since the CBN does not have enough dollars for importers and manufacturers..

Let me explain in simpler terms:

If you wish to import raw material for production (which 100% of nigerian manufacturers do,(from plastic, to pharma, etc), then you have two ways of paying for the raw material:

LC = Letter of credit, which basically means the bank in Nigeria debits your account, then once the shipper ships he gets the funds..
Last year and two, LC's were getting approved in 1-2 weeks. Now it is taking 3-4 months, so many manufacturers now source black market funds to pay for raw materials.

Bill for collection basically means the shipper ships on credit and you submit the paperwork to the bank for payment. CBN usually approved the funds in 1-2 weeks, the last bill for collection submitted by my company took 4 months for approval. If it were not for black market we would have stopped production and had to lay off people.

Many of you aren't into business and you don't understand what is going on. Let me explain in simple terms.

What this simply means is that lets assume you have N5,000,000 and you want to go tour around and have fun in Europe:

Back then, you could convert your Naira into dollar, pay into dom acct, then travel and have fun.

Now the only OPTION is Naira card which now thanks to CBN has daily ATM limit of $300/USD per day, and maximum $50,000 per year spend per customer.

For the average poor person who never crosses the border, this doesnt affect them. However, many Nigerians need to access more than $300/day and $50,000/year.


Also, lets assume you want to buy a new car for your child in USA. Value of car = $20,000. Back then you go to mallam, buy $20,000 USD, send it to your child ($10,000 per day CBN LIMIT) and in 2 days your child buys the car. Now with the new rule your child better get used to taking the bus.

What the CBN effectively did is prevent many law abiding Nigeria from remitting funds abroad. Its kinda like banning driving at night because armed robbers operate at night.

For the average person , this policy is meaningless. For the rest of us business men who source parts, products abroad, we are in for hard times.

Goodluck all