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Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs - Business (3) - Nairaland

Nairaland Forum / Nairaland / General / Business / Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs (23030 Views) (2) (3) (4)

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Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by APCsupporter: 11:34pm On Jan 11, 2016
modath:

Omenka, NgeneUkwenu, seunmsg midolian, thevoice , passingshot, abduljabbar4, fulanimafia, sonoflucifer , Tonyebarcanista, beremx, oya make una go dey #dasukigate or una dorm.. cheesy

Abdujabbar don chop ban oo. He told me yesterday
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Bevista: 11:36pm On Jan 11, 2016
grandstar:
I doubt it. Demand for forex on the black market will rise for deposit into dollar denominated card accounts and also to wire abroad by importers unable to access the CBN. The prognosis is not good.May touch 300 soon.
In my opinion, the policy options available to the Apex Bank are:
(1) Continue supporting BDCs until we run out Reserves.
(2) Devalue the official rate of the Naira to cool demand.
(3) Maintain the current official exchange rate to support importation of essential items while pushing all other demand to the parallel market.
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The bank has chosen option 3 since option 2 will lead to instant inflation and option 1 is not even debatable. Mind you, it's not the CBN fault that our FX revenue has declined significantly. They are simply responding to prevent a full blown economic crisis.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Atlantian: 11:42pm On Jan 11, 2016
Can I wire money out of Nigeria now without the useless Form A that takes 2 weeks to process ?
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Truth234(m): 11:46pm On Jan 11, 2016
Atlantian:
Can I wire money out of Nigeria now without the useless Form A that takes 2 weeks to process ?

Yes if you are wiring your deposited foreign currency.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Atlantian: 11:48pm On Jan 11, 2016
Truth234:


Yes if you are wiring your deposited foreign currency.
Which one I wan wire before ? From the broke Nigerian Reserves ? Will be nice to easily pay my siblings fees abroad without going through the shylocks.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by seunmsg(m): 11:49pm On Jan 11, 2016
Bevista:
@ the bolded. Unfortunately, that is not the direct job of Monetary authorities. That responsibility falls directly on the table of Fiscal authorities.
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The president needs to get his team to come up with a comprehensive & integrated policy covering agriculture, trade & industries, import substitution, etc. Ideally, the CBN should only use its monetary tools to complement government plans.
---
But, unfortunately, the CBN Governor seems to be left on his own with very little contribution from Kemi & Co. Nobody know what the economic policies of government are. Their communication management is zero. If the government wants to ban importation of certain items, then they should make it clear and then tell us what they will do in the short term to promote local production as substitutes.


I agree with you completely. The finance ministry and CBN needs to work together to solve the problem. Monetary policy alone is not enough to save the situation. The ministry of finance needs to come up with fiscal policy that will compliment the effort of the CBN.

1 Like

Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Truth234(m): 11:53pm On Jan 11, 2016
Atlantian:
Which one I wan wire before ? From the broke Nigerian Reserves ? Will be nice to easily pay my siblings fees abroad without going through the shylocks.

Lol.. Previously you can't deposit foreign currency but that restriction has been lifted in today's circular. You might still have to go through them if you are paying school fees so you can access forex at bank rate.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by fulanimafia: 11:57pm On Jan 11, 2016
You seem to be quite familiar with fools going by your frequent reference to them.

The fact remains that this move will reduce forex activity in the parallel market, and minimize the frequent round tripping where BDC's get forex from the CBN at official rates only to dispose of them at exorbitant rates. You failed to factor the fact that the current official exchange rate is fixed and not floating.



KoldKash:


Don't let them fool you.this measure they are taking will reduce dollar supply and that will in turn increase demand for dollars.any fool knows increase in demand increases price and that way the dollar will only keep soaring higher which is the vested aim of CBN.That way, they'll be able to scrape off a few extra dollars on crude oil sales to make up for the falling prices of oil
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by grandstar(m): 11:58pm On Jan 11, 2016
Bevista:
In my opinion, the policy options available to the Apex Bank are:
(1) Continue supporting BDCs until we run out Reserves.
(2) Devalue the official rate of the Naira to cool demand.
(3) Maintain the current official exchange rate to support importation of essential items while pushing all other demand to the parallel market.
---
The bank has chosen option 3 since option 2 will lead to instant inflation and option 1 is not even debatable. Mind you, it's not the CBN fault that our FX revenue has declined significantly. They are simply responding to prevent a full blown economic crisis.

The best economists in the world advise devaluation. The refudal to officially devalue is what is causing all this mayhem and round tripping.

1 Like

Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by grandstar(m): 12:03am On Jan 12, 2016
Guk:
Simple law of Demand and Supply has been ignored. If you allow us to collect our Western Union in our $$ with which it was sent to us, the BDCs will have sufficient inflow into the Autonomous market and exchange rate will come! down. CBN Gov forgets that there was a time abt 4 years! ago that Black Market and CBN rates were almost the same until Emperor SLS introduced by force by force that we must collect our WU in =N= @ CBN rates and the banks in return gave us our same money bank at 15% loss to us through our Debit cards.
They should have gone further and allowed people to receive in euros and pounds.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by porka: 12:06am On Jan 12, 2016
Have they found all the politicians who hid dollars in the wardrobe now?

These guys have succeeded in bankrupting SMEs with their useless policies and with the shameful defense they have been giving to the useless policy.

Of what benefit are these useless tweaking of a useless policy if at the end of the day the naira is still devalued? The foreign reserve would still have been wiped out and many businesses would still have collapsed with many people pauperized.

2 Likes

Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by SangoCrusader: 12:29am On Jan 12, 2016
Can't believe how ignorant people are... how is this a good policy?!?!?

How many of you imbeciles have ever received dollars at the official rate? Virtually all of us purchase forex first/second hand via these BDCs. Restricting sales to the BDCs WILL INCREASE PRESSURE ON THE NAIRA. Are you all blind to see what Emefieleconomics is doing to this country?

Devaluation is the only option in this instance and the rest of the world is amazed at the silly and ineffective policies CBN seem to conjure. Don't let anyone fool you, WE HAVE TO DEVALUE THE F***KING NAIRA. Russia, Venezuela, Angola, and most other oil producing nations have done the same, we have a reasonable precedent, what are we waiting for?!?!?!?!

This is at least the 20th policy Emefiele is introducing and none of the predecessors have halted the falling value of the naira. I am moving my money out en masse, any one else with two brain cells between his/her ears will do the same!
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by onechance(m): 12:31am On Jan 12, 2016
This is the worst CBN governor of all time . I ask is he a politician or a technocratic, this is by chance the worst policy in GMB administration yet, no matter the economy is you can't do away the BDC. The CBN has indirectly killed the naira against the dollar.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by datigbogirl: 12:40am On Jan 12, 2016
After dollar don reach high-heavens...
Trial and error economics...."eyi je eyi o je"
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by onechance(m): 12:41am On Jan 12, 2016
How is this a good policy ? Food for thought...... What good policy has EMIFELE introduced since he took over the reins at CBN ?....NONE . So those who don't know about forex,monetary policy,import and export,demand and supply. Should have a rethink.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Truth234(m): 1:14am On Jan 12, 2016
SangoCrusader:
Can't believe how ignorant people are... how is this a good policy?!?!?

How many of you imbeciles have ever received dollars at the official rate? Virtually all of us purchase forex first/second hand via these BDCs. Restricting sales to the BDCs WILL INCREASE PRESSURE ON THE NAIRA. Are you all blind to see what Emefieleconomics is doing to this country?

Devaluation is the only option in this instance and the rest of the world is amazed at the silly and ineffective policies CBN seem to conjure. Don't let anyone fool you, WE HAVE TO DEVALUE THE F***KING NAIRA. Russia, Venezuela, Angola, and most other oil producing nations have done the same, we have a reasonable precedent, what are we waiting for?!?!?!?!

This is at least the 20th policy Emefiele is introducing and none of the predecessors have halted the falling value of the naira. I am moving my money out en masse, any one else with two brain cells between his/her ears will do the same!

And is their economy better than ours at the moment, see Nigeria have one of the best economy currently. All the countries you mentioned are struggling without options, that was why they devalued. South Africa currency, Rand declined 9% today even though its not fixed like Naira, the economy is the most affected among emerging economies. IMF should go and do something about those first, at least their currency is not fixed, how come they are suffering the most?.

Russia didn't devalue, after Angola devalued, Kwanza has slide 40%. Since China yield to pressure August last year and devalued Yuan, it has devalue 5 times after, causing global equity to lose around $4 trillion. The same people that pressured China are the one complaining China policy is responsible for global economic rout. You know what they are doing now? Withdrawing and leaving China to her fate.

Chinese government have stopped trading twice this new year to stop people from withdrawing because of the damage it is causing to the entire economy. It is simply wrong to measure the strength of an economy against the most appreciated currency in the world for the past 12 months. Naira is not the best but trust me we are far from the worst.

7 Likes

Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by ngmgeek(m): 2:00am On Jan 12, 2016
I blame those who are still giving him that ogogoro that's making feel like Superman or Incredible Hulk cheesy
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Nobody: 2:43am On Jan 12, 2016
A reliable source told me that you can Transfer your FX Out.. FX THAT YOU DEPOSITED or RECEIVED VIA TRANSFER.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by BekeeBuAgbara: 3:00am On Jan 12, 2016
coolsix:
A reliable source told me that you can Transfer your FX Out.. FX THAT YOU DEPOSITED or RECEIVED VIA TRANSFER.
The big question is at what rate?
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Nobody: 3:16am On Jan 12, 2016
BekeeBuAgbara:
The big question is at what rate?

When you deposit your FX, transfering the FX has nothing to do with rate. Its the same amount and in the same Dollar or Euro currency.

You only talk rate when you are buying the FX Cash. There are so many ways to get cash
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Nuahall2k14(m): 3:33am On Jan 12, 2016
if i open a foreign account and dey wire money to me wil it b more expensive for dem wen wiring d money?
coolsix:


When you deposit your FX, transfering the FX has nothing to do with rate. Its the same amount and in the same Dollar or Euro currency.

You only talk rate when you are buying the FX Cash. There are so many ways to get cash
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by onatisi(m): 3:42am On Jan 12, 2016
tolulakin:
Thank you for being a better thinker than most guys who come on here.

Disallowing sales of forex to BDCs is more like saying, 'okay we are now willing to sell to you oh, but we don't have the goods!'

By simple forces of demand and supply, increased scarcity of the dollar will only make it more expensive and the long term effects are unimaginable!


I don't think many ppl fully understand the negative implications of what cbnjust did. There is already a massive reduction and restriction on the amount of people transaction one can do with the atm cards,the question now is how do ppl get dollar for deposit. This move will reduce the pressure on the naira in the short term but skyrocket the cost if dollars in the parallel market

1 Like

Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by persius555: 3:45am On Jan 12, 2016
Bankers and BDCs will be the order of the day. CBN better improve on their monitoring mechanism.

1 Like

Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by JayJustus(m): 4:34am On Jan 12, 2016
tdikeh:
Can we then TRANSFER Our Cash Deposit out of the Country ?

This policy is SILENT on Foreign Transfer But only States Cash Deposits.


once your domiciliary account is funded you can always transfer outside with your bank phone app or walk into the bank (if you like to stand)
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by onyxo76(m): 5:32am On Jan 12, 2016
does this mean that i can't change my dollars to naira upon my arrival in Nigeria when i'm back from my trip? i believe those ones in the airport should still be operating.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by totorimi: 5:51am On Jan 12, 2016
When govt do not think through issues before making pronouncements to the public which they later change anyway, after realizing their folly.
This is typical of a tyrannic system no deep thinking.

Now who will compensate the hardworking and law abiding citizens who were caught up in this unwarranted policy somersault. This guys should realise that in their bid to settle scores end up creating bigger problems for the economy e.g what on earth did the ban on forex deposit achieve within this period, nothing whatsoever other than problem.
Just as it is obvious even if he TSA will also be reversed in due course.

I can only suggest the govt get their focus steady on matching on than all this distraction s that is leading no where. one year of the administration is almost here soon they will become desperate to make a mark and then that could lead to colossal and longterm challenges.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by bigtt76(f): 6:18am On Jan 12, 2016
Hmmm..... How do you access the dollars now? Banks won't sell to you, BDCs no longer get supplies so we are now left with sourcing from Abok1s undecided meaning fake dollars would flourish. CBN governor needs to be SACKED! angry

Do they think this would entice all those who shared PDP/Dasuki funds would start rushing back to deposit their dollars? So the banks can report them? BTW the banks would be required to ask the source of funds
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by bigtt76(f): 6:26am On Jan 12, 2016
Best option in my opinion is for CBN to redenominate the Naira to make it more portable. That has been the major reason why dollars is being sort and used locally for transactions. Doing this will curb demand.
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by onatisi(m): 6:30am On Jan 12, 2016
bigtt76:
Best option in my opinion is for CBN to redenominate the Naira to make it more portable. That has been the major reason why dollars is being sort and used locally for transactions. Doing this will curb demand.
Like 1naira to 1 us dollars ,abi?
grin
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by lielbree: 6:45am On Jan 12, 2016
I think emefeli is on crack undecided

1 Like

Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by modath(f): 6:48am On Jan 12, 2016
APCsupporter:


Abdujabbar don chop ban oo. He told me yesterday

Wish he could have the mind to ignore trolls..

Wish you could see my mentions but trust me, I don't entertain foolishness! smiley
Re: Cbn Lifts Forex Deposit Restrictions & Also Cancels Forex Sales To BDCs by Bevista: 7:13am On Jan 12, 2016
SangoCrusader:
Can't believe how ignorant people are... how is this a good policy?!?!?

How many of you imbeciles have ever received dollars at the official rate?
Virtually all of us purchase forex first/second hand via these BDCs. Restricting sales to the BDCs WILL INCREASE PRESSURE ON THE NAIRA. Are you all blind to see what Emefieleconomics is doing to this country?

Devaluation is the only option in this instance and the rest of the world is amazed at the silly and ineffective policies CBN seem to conjure. Don't let anyone fool you, WE HAVE TO DEVALUE THE F***KING NAIRA. Russia, Venezuela, Angola, and most other oil producing nations have done the same, we have a reasonable precedent, what are we waiting for?!?!?!?!

This is at least the 20th policy Emefiele is introducing and none of the predecessors have halted the falling value of the naira. I am moving my money out en masse, any one else with two brain cells between his/her ears will do the same!
While I do agree with you that devaluation would have been the most appropriate course of action, I do not think it is necessary for you to use such derogatory terms on others who either do not agree with your views or lack similar insight as yours.
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It is important to not that, even if the CBN had devalued the Naira, most of us would still not be buying at the official rate. We will still patronize the parallel market which will still be a few pips above the official rate.
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The CBN has an inflation target band of 6-9%. Currently, inflation is above 9%. The CBN is probably worried that if they devalue, a major essential item like PMS might go up above N100. This will cause inflation to shoot up above 11%. The other option would be for the government to use its meagre resources to continue subsidy (to keep the product at N87).

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