Good day,

There is a confusion due to the FOREX policy the country is facing presently. A colleague proposes to borrow some money for a biz from a friend (though not really a closed friend) based in USA with interest to be payed on it. Knowing fully well that he will be paid the Naira equivalent of that amount at the rate of N197-N199/$ at the bank.

The concern is that how can he justify such loan when he will have to pay back in dollars at probably N300-N305/$ rate?

Is there any way to go about it such that the difference between amount at which dollars is sold and bought will not be much?

The loan may not yield any profit from the biz and even turn to debt after the repayment period if the he can't overcome N199 to N305 exchange difference.

Thanks.

tafrica:
Good day,

There is a confusion due to the FOREX policy the country is facing presently. A colleague proposes to borrow some money for a biz from a friend (though not really a closed friend) based in USA with interest to be payed on it. Knowing fully well that he will be paid the Naira equivalent of that amount at the rate of N197-N199/$ at the bank.

The concern is that how can he justify such loan when he will have to pay back in dollars at probably N300-N305/$ rate?

Is there any way to go about it such that the difference between amount at which dollars is sold and bought will not be much?

The loan may not yield any profit from the biz and even turn to debt after the repayment period if the he can't overcome N199 to N305 exchange difference.

Thanks.

If you can pay to my contact over there, I will pay you the naira equivalent here

Connoisseur:


If you can pay to my contact over there, I will pay you the naira equivalent here

Your exchange rate sir?

How is the person sending the money?

tafrica:


Your exchange rate sir?

Hit me up