Nairadays:


Firefire, am not an economist.

Please see my edit.

Should we say the market has been deregulated. I don't know.

Am just coming from the banks around my working place, asking them can i send money outside Nigeria via Western Union, since WU will mostly charge NGN225 to $1, at least it will help. But 2 of the banks says they've put sending out money via western union on hold. Mtcheww. Only 1 bank says it allows Moneygram only if i have an account with them.

VANENON:
Please pardon my lack of understanding but I had assumed the banks should charge at the officially CBN rate.
I would want someone to enlighten me on why bank are allowed to make abnormal profit at the expense of the masses.
Why are the banks not charging at CBN rates?
I used my naira master card last month for an online transaction and got charged virtually same price as black market and couldn't understand the rationale for this.
Please someone who truly understands how this works and the basis for this policy, if its legal should help throw some light on this.

kennyslim1:



Please which bank allows MoneyGram

41lady:


Let be specific, Firstbank and GTbank Charge at NGN397 to NGN400 per USD1. I use my naira card and that's the rate they charged me.They have turn to financial criminals now, using the economy lopholes to exploit people.

Lajet:


Which bank told you if you have account with them you can send out Money Gram at the rate 225 Naira to $1 because i have went to every bank none of them is sending out Money Gram or Western Union .and why is that when somebody send money to Nigeria through Western Union or Money Gram the bank will pay the person at the rate of 197 naira to $1 but the will charge me at the rate of 330 Naira to $1 if i use my Naira Master Card to buy something online or withdraw money outside the country

Nairadays:


Firefire, am not an economist.

Please see my edit.

Should we say the market has been deregulated. I don't know.

Am just coming from the banks around my working place, asking them can i send money outside Nigeria via Western Union, since WU will mostly charge NGN225 to $1, at least it will help. But 2 of the banks says they've put sending out money via western union on hold. Mtcheww. Only 1 bank says it allows Moneygram only if i have an account with them.

skyhighweb:
which bank is that? and if they allow quick open n start sending.

imohchard:
Dude banks are business organization, they use the dollar to do busineSs.. If they trade at CBN rate they would make loss.. They themselve buy the dollar from oversea and they don't buy it at the CBN rate, they buy it at parales market rate... They can't sell lower than that or else they go bankrupt...


Shaking my head for those shouting corruption... Understand a thread before commenting

Nairadays:
The banks are now permitted to source for the greenback themselves, not like before where they were offered via the DAS (Dutch Auction System) of the CBN.

When they source from the CBN, they're bound by the law to charge at that rate or slightly higher than the rate at which CBN sold it to them, but now CBN stopped the auction system partly due to the fact that our foreign reserves have been depleting since the fall in crude prices, and so therefore banks are mandated to source for it themselves. They're not bound by the CBN official rates trading anymore but blackmarket rates.

It's so painful, heard from my colleagues that one certain bank was even charging NGN398 to $1.

May God deliver us from the mercy of these banks.

Uchefrancis16:
Hello my friend I agree with you to an extent.

Since they source the dollars overseas, at rates higher than the CBN then they have yo sell at parallel rate. this isvgoid and shouldn't be regarded as corruption.

However, why is it that if they want to buy dollars from us, they don't pay at parallel rate? For instance, when AdSense pays me at the end of the month in dollars, my bank credit my account at 198.5 to a dollar which is not even up to the CBN 199. Is that not corruption?

jimi4us:
abeg make una dey mention the banks name, so that we go know how to dey dudge bullet

dominique:
Sometimes they charge higher than parallel rates sef. Someone once lamented how one of them charged him as high as N350 per dollar. FG has never sanctioned any bank for selling higher than CBN rate.

Nairadays:
The banks are now permitted to source for the greenback themselves, not like before where they were offered via the DAS (Dutch Auction System) of the CBN.

When they source from the CBN, they're bound by the law to charge at that rate or slightly higher than the rate at which CBN sold it to them, but now CBN stopped the auction system partly due to the fact that our foreign reserves have been depleting since the fall in crude prices, and so therefore banks are mandated to source for it themselves. They're not bound by the CBN official rates anymore but by the blackmarket rates.

It's so painful, heard from my colleagues that one certain bank was even charging NGN398 to $1.

May God deliver us from these banks.

billyoung:
The reason is that banks have to source the dollar themselves. The CBN sells only a limited amount to them every week. The banks have to buy at black market rates just like you do so they have to at least break even if not make a profit.

IamUdo:
I'm in the US and I used my master card from Ecobank n was charged 320 naira pet dollar. Its jst outrageous and I call this a TOTAL FRAUD.

scachy:


Honestly, the last I received 2 days ago was charge at 258 (aside #14,700 transfer charge) .
It's so pathetic.

amenuveve:

which of the banks did they use and which medium(moneygram or westernunion), thanks

persius555:
You just spoke my thought. The banks charge official rate when you recieve money from abroad and charge you double when you make payments. Some ignorants say the banks source money from abroad and parallel markets, i laugh fulani... Some days ago, there was a headline that nigerians repatriated $21 billions in 2015. This is the same forex that the banks sell to the locals at almost twice official rate. They do not source their forex abroad or black market. The twosources are CBN and foreign repatriations. Take a look at the volume dollars that all western unions transact on a daily basis and you will realise how much profit the banks are making effortlessly.

Quakertellicus1:


Good explanation.

In other words....low crude prices= low forex reserves.

blackprowler:


Didn't you know already? Nigeria is a den where people try to get away with as much as they can over everyone else. A country that can even use religion for that end. Lemme tell you a story: when pound was going to 400 naira real rate and the fake 299 "official", someone sent me lots of £ from the UK through the banks. They promptly credited my account at 299 each pound. I already lost almost 100k naira. Now, I need to buy stuff for my business on eBay UK and other places. I pay via Paypal from same bank and they promptly deducted the almost 400naira for each £ I paid. My calculations show it was same as the person sent me 60% of what they sent. If I had spent all on online transactions, I would have actually spent under 40% of what was sent to me. NIGERIA IS A JOKE!

scachy:

First Bank, both mediums