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CBN Cuts Bdcs’ Dollar Sales To $10,000 - Business (3) - Nairaland

Nairaland Forum / Nairaland / General / Business / CBN Cuts Bdcs’ Dollar Sales To $10,000 (25000 Views)

CBN To Increase Dollar Sales To BDC Operators / CBN Resumes Dollar Sales To BDCs / Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs (2) (3) (4)

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Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by 1miccza: 5:42pm On Jan 05, 2016
Naijainvestor:
Not sure how much of elementary economics the monetary experts in C BN understand. They all seem to be supply side economists
By restricting the sale, you are lowering supply and with increased demand, the price of the dollar will go up. There is need to manage the demand side too. The elesticity of demand for the dollar is highly in elastic almost perfectly in elastic. As long as the price of oil keeps falling and Nigerians keep going abroad for vacation, buying imported foods, etc, the Naira will keep being under pressure

They are setting the stage for a huge fall for themselves
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Image123(m): 5:53pm On Jan 05, 2016
Forwetinnah:
And if the mallam still devalues the Naira after all these Gra gra. ..shame na APC own
so when your sorry sef is rushed to an hospital and the doctor wants to try his best so you don't die. Is it better he doesn't make an attempt since you may die after all?

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Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by paranorman(m): 6:19pm On Jan 05, 2016
Tochaigh:
I have an article that proves emifiele a retard coming soon.

What many Nigerians don't know is that even though the central bank pegged the exchange rate, it's still spending billions of scarce forex defending that fixed rate, because if it doesn't the black market will destroy the CBN.

Exchange rate, pegged or free flowing will always be determined by demand and supply in an economy like Nigeria's. Useless policies on top of piles of useless policies.

Enough said. My article is loading.
true, demand and supply interactions should always be allowed to play, and the effect of such play is well pronounced in advanced economies of the world.
Oga, mention me when your article is finally ready..
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by diva90: 6:20pm On Jan 05, 2016
Scarcity of bdc dollars = more inflation?

1 Like

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by tomayira(f): 6:44pm On Jan 05, 2016
Are you still saying helping hands is a scam? Ok o, CBN policies doesn't affect us in any way. We,re still smiling to the bank daily. Join the best ever networking biz now! Don't say had I know later, as for me I'll have my keyless Hyundai Elantra by May. Check my signature
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by modath(f): 7:11pm On Jan 05, 2016
Demmocrats:


Bro which one travelex pls explain more wow

Travelex sells to ONLY travelers with verifiable travel docs..Not tO business people.

BTW, am not a bro..
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by erico2k2(m): 7:32pm On Jan 05, 2016
naheem8307:
For those coming into the country, what is the maximum amount of dollars allowed to come along with ?
U r meant to declare anything above $10 k
But wait a minute why do U want to carry forex intto Nigeria?
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by erico2k2(m): 7:35pm On Jan 05, 2016
Demmocrats:


I like smart guys, bro nice analysis but you still didn't answer the question. I asked can you name the bank that charges 199.
Fidelity. WE wired my niece yesterday in the USA
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by ShowYourCertificate: 8:38pm On Jan 05, 2016
ibisko04:


How are you faring with your phd in economics
I have a PhD in a different field, however I got an A2 in Economics during my secondary school days. Buhari isn't worth the straps of my sandal.
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by back2sender: 8:50pm On Jan 05, 2016
ShowYourCertificate:
Buharinomics. How do you expect someone who didn't pass economics in his non-existent WASC Certificate to fare with our economy? undecided

Buhari's dullardity knows no bound.
He beta pass your goatluck who plunder the country resources with the likes of father christmas sorry dasuki gate, opolo eye, indomie poof poof cheek, metuselah, fanyogo, giant card, wheel chair etc.
Your Biafra KANU go rotten for jail.
Hope you don collect your Biafra passport, shameless people
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by ibisko04: 9:09pm On Jan 05, 2016
ShowYourCertificate:
I have a PhD in a different field, however I got an A2 in Economics during my secondary school days. Buhari isn't worth the straps of my sandal.

Why are you feeling too high on a soaked toilet roll.
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by ojay2053(m): 9:14pm On Jan 05, 2016
lagosrd:


Lobbish
. My guy e dey vex, you won't understand.

1 Like

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by templeinyou(m): 9:53pm On Jan 05, 2016
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by saintkash(m): 11:00pm On Jan 05, 2016
anonimi:


You better wake up and smell the akamu before it is too late.


www.nairaland.com/attachments/2200220_buharitimes_jpeg7f7af5477cac38029a73c90597c94226



www.nairaland.com/attachments/2095210_worst_jpeg588f192a23aa02a7b350a8bbe5d18306


hmmmm... mr man u current ooo... 70,000 graduates abi... pls give us something current instead of pages from 17th February 1985..... blinded by hatred.
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by saintkash(m): 11:02pm On Jan 05, 2016
templeinyou:
Your Papers have no date guess is last 3yrs paper
Don't mind him jor... d first page carries 17feb 1985.
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Nobody: 5:41am On Jan 06, 2016
ShowYourCertificate:
Buharinomics. How do you expect someone who didn't pass economics in his non-existent WASC Certificate to fare with our economy? undecided

Buhari's dullardity knows no bound.

Good morning. I saw your comment.

The problem simply put is that we are an oil dependent economy, and the only way we can get dollars to prop up our naira is by getting dollars from the sale of oil.

Now, thanks to the fall in international oil prices, as well as the previous administration's failure to save dollars (not that it matters....and I will explain why), we do not have enough dollars to prop up the naira.

And even if we had saved, that would only delay things by a year. Maybe six months. Especially as oil prices are predicted to drop for the next two years (And that's the optimists speaking. Pessimists like me see oil getting to $40 in ten years time....).

It isn't only Nigeria. Angola's currency is falling, Venezuela is embarking on serious dollar hoarding (so much to the point that there are shortages of essential goods because of no dollars to import),and even the healthy Saudi Arabia (whose Finance minister was on Bloomberg last March saying that all was well)...is worried,especially as they just went through $124bn of their savings in one year. On propping up their currency among other things. And they have $600bn left. Now imagine five more years of oil staying below$40....

CBN is hoarding dollars,because if they devalue the currency.....the other alternative.....things would get much worse.Prices would go up and inflation would skyrocket.

And we know how that ends. Zimbabwe. In 2000, Zimbabwe took over all their white owned farms, in the name of freedom. In the process they destroyed their ability to gain dollars to prop up their currency. As a result...they were forced to devalue their currency, and then the resulting inflation took over.

Today the Zimabwean dollar is just worthless. The average Zimbabwean uses US dollars, South African Rands, and lately Chinese Yuan as the ''national currency''

Am sure you don't want that for Nigeria.

I hope you understand why Buhari's economic team has to take such measures.

It only remains to pressure our government to get us off resource dependency and into industrial development.....a policy which propelled China from being behind Sierra Leone in GDP in 1973, to being much higher IN 2016. The difference is clear....China used its hands. Sierra Leone kept on being resource dependent.

Resource dependency is waht got us here. Getting off it could lead us to economic prosperity. The question is ....are Nigerians ready to end their love affair with resource dependency?

Further reading....

A not so brief history of the fall and the fall of the Nigerian Naira.

1 Like

Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by diva90: 6:39am On Jan 06, 2016
Are banks still selling PTA/BTA
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by blank(f): 7:29am On Jan 06, 2016
Naijainvestor:
Not sure how much of elementary economics the monetary experts in C BN understand. They all seem to be supply side economists
By restricting the sale, you are lowering supply and with increased demand, the price of the dollar will go up. There is need to manage the demand side too. The elesticity of demand for the dollar is highly in elastic almost perfectly in elastic. As long as the price of oil keeps falling and Nigerians keep going abroad for vacation, buying imported foods, etc, the Naira will keep being under pressure.

That is where your minister of finance steps in. She needs to put in place fiscal policies that would curb the demand for dollars.
Re: CBN Cuts Bdcs’ Dollar Sales To $10,000 by Olaone1: 4:04pm On Jan 06, 2016
undecided

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