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CBN Resumes Dollar Sales To BDCs - Business - Nairaland

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CBN Resumes Sales Of Forex To Bdcs / CBN Suspends 19 Banks From Forex Sale To BDCs / CBN To Banks: Sell Forex To BDCs - Nairametrics (2) (3) (4)

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CBN Resumes Dollar Sales To BDCs by 989900E: 7:37pm On Aug 05, 2016
The Central Bank of Nigeria (CBN) will today resume dollar sales to Bureaux De Change (BDCs) seven months after it stopped the practice.

It stopped the sales last January because of what it called dollar scarcity and abuse of operating guidelines.

Speaking to The Nation yesterday, Aminu Gwadabe, Association of Bureau De Change Operators of Nigeria (ABCON) President, said nearly 3,000 BDCs are expected to access dollar from the CBN today.

He said the BDCs had on Wednesday, funded their accounts with the CBN in readiness for the transaction, adding that dollar disbursement will start today and continue next week.

“Our members funded their accounts with the CBN on Wednesday and will get the dollar equivalent today. The funds will be sold at the prevailing inter-bank rate,” he said.



Gwadabe said the funds would come at one per cent commission, which has been agreed with the regulator.

The CBN directed the BDCs to render returns and comply with anti-money laundering regulations.

Gwadabe promised that the BDCs would abide by the directives and continually provide detailed reports on how previous dollars sourced from the CBN were utilised.

The ABCON boss said the naira exchange rate against the dollar is expected to crash as more BDCs have access to the green back. He said the naira exchanged at N385 to the dollar at the parallel market, adding that it is expected to strengthen in the coming weeks as CBN’s interventions continue to calm the market.

The CBN is targeting huge dollar supplies from the Diaspora estimated at $21 billion yearly, but it is expected to hit $35 billion by the end of this year as more Nigerians living abroad remit more dollars home after the adoption of the flexible foreign exchange policy which removed 16-month peg on the local currency.

Gwadabe said although BDCs were happy with the resumption of dollar sales to operators, they are also requesting that the CBN opens more windows for them to operate.

“We want more windows to be opened for BDCs instead of restricting it to Diaspora funds. We are happy we can now access the Diaspora funds, but we want the CBN to do more. We are confident that today’s sales will continue to calm the market,” he said.

Last January, the CBN stopped funding of BDCs. Announcing the policy shift in Abuja, CBN Governor, Godwin Emefiele said: “The bank (CBN) would, henceforth, discontinue its sales of foreign exchange to BDCs. Operators in this segment of the market would now need to source their foreign exchange from autonomous sources. They must however note that the CBN would deploy more resources to monitoring these sources to ensure that no operator is in violation of our anti-money laundering laws”.

Last month, the CBN, ifted the ban. In a circular to authorised dealers titled: Sales of Foreign Currency Proceeds of International Money Transfers to Bureaux De Change Operators and signed by CBN Acting Director, Trade & Exchange W.D Gotring, the apex bank said the policy shift would ensure the stability of the exchange rate and boost participation of all critical stakeholders in the foreign exchange market.

Gotring directed all authorised dealers (mainly banks) who are agents to approved International Money Transfer Operators to sell foreign currency accruing from inward money remittances to licenced BDCs with immediate effect.

He explained that all International Money Transfer Operations are required to remit foreign currency to the agent banks for disbursement in naira to the beneficiaries while the foreign currency proceeds shall be sold to the BDCs.

To ensure the success of the policy, CBN on Monday, certified only three international money transfer firms- Western Union, MoneyGram and Ria.

The CBN also stopped hundreds of global remittance companies from operating in the country including WorldRemit, sends more than 40,000 money transfers to Nigeria every month and receives more than $20 billion in remittances annually from migrants around the world.

Investigations showed that many of the affected firms were not licensed to operate in the country and may have breached some of the operating guidelines. An industry source alleged that the affected firms were withholding dollar inflows meant to deepen foreign currency liquidity in the country, and were paying local beneficiaries with naira instead of dollars.

“The CBN wishes to advise Nigerians at home and in the Diaspora to beware of the unwholesome activities of some unlicensed International Money Transfer Operators (IMTOs) in Nigeria. This warning has become necessary because of the activities of some unregistered IMTOs, whose modes of operation are detrimental to the Nigerian economy,” CBN Acting Director, Corporate Communications, Isaac Okorafor said.

The CBN spokesman said all financial service providers in Nigeria, just as in other jurisdictions, are required to be duly licensed in order to protect both customers and the financial system as well as to ensure the credibility of financial transactions.

“For the avoidance of doubt, all licensed International Money Transfer Operators, in line with the CBN Circular on the sale of foreign currency proceeds of July 22, 2016, are required to remit foreign currency to their respective agent banks in Nigeria for disbursement in Naira to the beneficiaries while the foreign currency proceeds are to be sold to Bureaux De Change operators, for onward retail to end users. The CBN will therefore not condone any attempt aimed at undermining the country’s foreign exchange regime,” Okorafor warned.

http://thenationonlineng.net/cbn-resumes-dollar-sales-bdcs-today/

1 Like 1 Share

Re: CBN Resumes Dollar Sales To BDCs by krendo: 7:47pm On Aug 05, 2016
Government of U-turns!!!!!

57 Likes 2 Shares

Re: CBN Resumes Dollar Sales To BDCs by BoboFashion(m): 7:49pm On Aug 05, 2016
At what rate biko, may una no liquidate person money.
Re: CBN Resumes Dollar Sales To BDCs by 989900E: 8:07pm On Aug 05, 2016
1. The CBN is both corrupt and clueless at the same time.

2. The banks are some cesspit of profiteering and racketeering, frustrating all monetary policies along with their cronies.

3. Some group of Nigerians (politicians mostly) are going to make most policies null/DOA with the massive amount of stolen monies they need to convert to foreign currencies for easier storage.

4. The CBN under Emefiele is not only weak, but chronically corrupt, thus lacks the will power to really effect the actual policies that should arrest the situation. It is worthy to note, Emefiele supervised the emptying of the treasury, he didn't do it for free, he owes those people, hence he can't really go for the kill (against hoarding). Over $20 billion dollars in dorm accounts in Nigeria, and there is scarcity?

5. Still on hoarding and racketeering, now everyone is doing it -- from Nairalanders to bank staffs, BDCs, government officials, Nigerians overseas, the 'average Joe' . . . but we all want a stable Naira, how ironic?

47 Likes 4 Shares

Re: CBN Resumes Dollar Sales To BDCs by aleshsenior2000(m): 8:46pm On Aug 05, 2016
Try and error. Ok, let try again...

4 Likes

Re: CBN Resumes Dollar Sales To BDCs by LordAdam: 10:38pm On Aug 05, 2016
989900E:
1. The CBN is both corrupt and clueless at the same time.

2. The banks are some cesspit of profiteering and racketeering, frustrating all monetary policies along with their cronies.

3. Some group of Nigerians (politicians mostly) are going to make most policies null/DOA with the massive amount of stolen monies they need to convert to foreign currencies for easier storage.

4. The CBN under Emefiele is not only weak, but chronically corrupt, thus lacks the will power to really effect the actual policies that should arrest the situation. It is worthy to note, Emefiele supervised the emptying of the treasury, he didn't do it for free, he owes those people, hence he can't really go for the kill (against hoarding). Over $20 billion dollars in dorm accounts in Nigeria, and there is scarcity?

5. Still on hoarding and racketeering, now everyone is doing it -- from Nairalanders to bank staffs, BDCs, government officials, Nigerians overseas, the 'average Joe' . . . but we all want a stable Naira, how ironic?

Please Mr. Economist, suggest a better monetary policy.

Since the start of the FX crisis, CBN has taken hard but valid steps to assuage the situation. It is not their fault that they are not performing any miracles. Emefiele is not a sorcerer.

The major department of the FG that can prop up the economy is the Ministry of Finance. We have an amateur there. And no body is saying anything because she is from the sophisticated tribe.

Nigeria is in a recession and the best Adeosun can tell us is that she's getting rid of ghost workers and not giving states new bail out? If NOI hadn't thought up and instituted the IPPS and Sanusi hadn't enforced BVN, would Adeosun be able to get rid of ghost workers?

Even a 2-year old kid can rid the civil service of ghost workers because these motions have already been set in play by the former administration. NOI removed tens of thousands of ghost workers, so it is a gradual process.

I'm not saying those are not important, but what Adeosun should be concerned most about is following the fiscal plan to spend our way out of this slump. They planned to spend N1.2 trillion in capital projects in 2016. It is August already, and only N200b has been disbursed.

How do you want the economy to grow and become enticing to investors if you're being a miser and not fast-tracking the process of disbursing that money? They are playing politics with the lives of 180m Nigerians. If there is no money, go and borrow. We all know the anti-corruption war is a farce and all those recovered loot sh*t only exists in the papers.

Emefiele managed a 197-199 exchange rate for up to 16 months, all this while the President was gallivanting and waiting for God knows what before assembling an economic team. When he did assemble a team, they put together a budget full of errors and drama. All these while, Emefiele was holding the fort.

After the budget was passed and the ball was in the court of Adeosun to give the economy a boost, she couldn't perform her duty. She was speaking Queen's English before and after the float happened instead of positioning the economy.

Even after the float and her inaction rendered the new policy useless, Emefiele is still buying her time with regular monetary interventions, and you still have the guts to blame Emefiele and the guys at CBN?

What da f'ck do you want from Emefiele?

Emefiele is responding to the times. If FDI had started flowing in after the float (as expected), would the CBN resume selling to the BDC's or revamping the remittance market?

This is how you guys jumped into conclusions that GEJ was doing nothing at the top. He left it for a fuckt'ard and everything went south.

Now you guys have shifted it to Emefiele, that he is doing nothing there, and so should be sacked.

Ask yourself, what exactly do you think Soludo or Sanusi would do in Emefiele's shoes?

Would Soludo or Sanusi have been able to convince Buhari to allow floating of the naira back in 2015 when he should have allowed it? Were these two not speaking with megaphones about floating/devaluation and Buhari was forming Alhaji?

Soludo and Sanusi managed Nigeria in times of plenty. Under Obasanjo, when the economy was still in shambles, USD/NGN increased from N21 to N133 (an over 600% increase) between 2000 and 2004. When Soludo entered and oil price maintained a high average, he was only able to reduce it from N133 in 2004 to 127 in 2009. Sanusi reduced from 127 in 2009 to 117 in 2014 when he left.

Soludo/Sanusi spent $20b to prop the naira during the aftermath of the financial crisis, which ended quickly after oil prices started rising. Emefiele has spent only less than $10b with prices falling and staying low for almost 2 years, and you expect the USD/NGN rate to be at 200?

Emefiele has done his best. If his best is not good enough for you, simply relocate from the country and go pay your taxes in another country.

Everyone knows the CBN is more involved in assuaging our current crisis than the FG and its moribund Ministry of Finance.

So, better sit tight and buckle your seat belt. We are in for a rough ride thanks to a dormant FG and reta.rded ministers (with Adeosun being a special case).

Pray oil price rises soon, because there is nothing Emefiele can do without corresponding input from FG to change the current trend.

We are in a recession. There is no dollars. The naira is worthless. Deal with it!

-Lord

118 Likes 11 Shares

Re: CBN Resumes Dollar Sales To BDCs by 989900E: 12:50am On Aug 06, 2016
LordAdam:


Please Mr. Economist, suggest a better monetary policy.

Since the start of the FX crisis, CBN has taken hard but valid steps to assuage the situation. It is not their fault that they are not performing any miracles. Emefiele is not a sorcerer.

The major department of the FG that can prop up the economy is the Ministry of Finance. We have an amateur there. And no body is saying anything because she is from the sophisticated tribe.

Nigeria is in a recession and the best Adeosun can tell us is that she's getting rid of ghost workers and not giving states new bail out? If NOI hadn't thought up and instituted the IPPS and Sanusi hadn't enforced BVN, would Adeosun be able to get rid of ghost workers?

Even a 2-year old kid can rid the civil service of ghost workers because these motions have already been set in play by the former administration. NOI removed tens of thousands of ghost workers, so it is a gradual process.


I'm not saying those are not important, but what Adeosun should be concerned most about is following the fiscal plan to spend our way out of this slump. They planned to spend N1.2 trillion in capital projects in 2016. It is August already, and only N200b has been disbursed.

How do you want the economy to grow and become enticing to investors if you're being a miser and not fast-tracking the process of disbursing that money? They are playing politics with the lives of 180m Nigerians. If there is no money, go and borrow. We all know the anti-corruption war is a farce and all those recovered loot sh*t only exists in the papers.

Emefiele managed a 197-199 exchange rate for up to 16 months, all this while the President was gallivanting and waiting for God knows what before assembling an economic team. When he did assemble a team, they put together a budget full of errors and drama. All these while, Emefiele was holding the fort.

After the budget was passed and the ball was in the court of Adeosun to give the economy a boost, she couldn't perform her duty. She was speaking Queen's English before and after the float happened instead of positioning the economy.

Even after the float and her inaction rendered the new policy useless, Emefiele is still buying her time with regular monetary interventions, and you still have the guts to blame Emefiele and the guys at CBN?

What da f'ck do you want from Emefiele?


Emefiele is responding to the times. If FDI had started flowing in after the float (as expected), would the CBN resume selling to the BDC's or revamping the remittance market?

This is how you guys jumped into conclusions that GEJ was doing nothing at the top. He left it for a fuckt'ard and everything went south.

Now you guys have shifted it to Emefiele, that he is doing nothing there, and so should be sacked.


Ask yourself, what exactly do you think Soludo or Sanusi would do in Emefiele's shoes?

Would Soludo or Sanusi have been able to convince Buhari to allow floating of the naira back in 2015 when he should have allowed it? Were these two not speaking with megaphones about floating/devaluation and Buhari was forming Alhaji?


Soludo and Sanusi managed Nigeria in times of plenty. Under Obasanjo, when the economy was still in shambles, USD/NGN increased from N21 to N133 (an over 600% increase) between 2000 and 2004. When Soludo entered and oil price maintained a high average, he was only able to reduce it from N133 in 2004 to 127 in 2009. Sanusi reduced from 127 in 2009 to 117 in 2014 when he left.

Soludo/Sanusi spent $20b to prop the naira during the aftermath of the financial crisis, which ended quickly after oil prices started rising. Emefiele has spent only less than $10b with prices falling and staying low for almost 2 years, and you expect the USD/NGN rate to be at 200?

Emefiele has done his best. If his best is not good enough for you, simply relocate from the country and go pay your taxes in another country.

Everyone knows the CBN is more involved in assuaging our current crisis than the FG and its moribund Ministry of Finance.

So, better sit tight and buckle your seat belt. We are in for a rough ride thanks to a dormant FG and reta.rded ministers (with Adeosun being a special case).

Pray oil price rises soon, because there is nothing Emefiele can do without corresponding input from FG to change the current trend.

We are in a recession. There is no dollars. The naira is worthless. Deal with it!


-Lord

Obviously, you barely understand the point I am driving at, and only see the part you wanna/can see.

And, if you can't decipher those basics, it's pointless . . .

12 Likes

Re: CBN Resumes Dollar Sales To BDCs by LordAdam: 1:10pm On Aug 06, 2016
989900E:


Obviously, you barely understand the point I am driving at, and only see the part you wanna/can see.

And, if you can't decipher those basics, it's pointless . . .

You made five points.

1. The CBN is both corrupt and clueless at the same time.

It is true they are corrupt, even NAFDAC under Akunyili and the Ministry of Agriculture under Adesina were still corrupt, but they weren't clueless. They made strides and you wouldn't mask the laudable efforts they made just to take a swipe at them for corruption that would take decades to eliminate completely.

The CBN under Emefiele is not clueless. The FG under Buhari and Ministry of Finance under Adeosun are the definition of clueless.

2. The banks are some cesspit of profiteering and racketeering, frustrating all monetary policies along with their cronies.

Also true, and it has been a never ending battle since the days of Soludo. Have you forgotten so soon about the CBN's reaction to the Skye Bank saga under Emefiele?

3. Some group of Nigerians (politicians mostly) are going to make most policies null/DOA with the massive amount of stolen monies they need to convert to foreign currencies for easier storage.

It happens everywhere, and it is the job of the government and relevant agencies to anticipate them. The CBN is obviously doing its best to reduce this, with the regular monetary interventions.

4. The CBN under Emefiele is not only weak, but chronically corrupt, thus lacks the will power to really effect the actual policies that should arrest the situation. It is worthy to note, Emefiele supervised the emptying of the treasury, he didn't do it for free, he owes those people, hence he can't really go for the kill (against hoarding). Over $20 billion dollars in dorm accounts in Nigeria, and there is scarcity?

Arrant Nonsense! The last time weak and chronically corrupt was used to describe an office holder of a sensitive position, it was GEJ. After he left it for someone "strong and not chronically corrupt" we know where that got us. Someone that shut down BDCs for blatant abuse of privileges, and then stopped the services of 100s of remittance companies to ensure streamlining of remittances to BDCs for more availability of dollars is weak? Do you know how many toes he stepped on with those decisions.

How old are you?

The over $20b you are talking about, is it your money? Is it FG's money? Is it a crime for people to keep their dollars in Nigerian dorm accounts? If you had $10,000 dollars in your dorm account as savings for a rainy day, would you sell it to the CBN because you are a patriotic Nigeria when you do not have immediate use of the Naira.

Do you not know that those $20b are deposits that the banks use as base for their lending? Or do you want him to rob people of their dollars?

5. Still on hoarding and racketeering, now everyone is doing it -- from Nairalanders to bank staffs, BDCs, government officials, Nigerians overseas, the 'average Joe' . . . but we all want a stable Naira, how ironic?

Everyone is out to make money. If you aren't, poor you. The Government created the conditions for hoarding and racketeering to thrive. If the economy was in a better position, would the disparity between official exchange rate and black market rate be this high?

Now that the CBN is trying to close the gap, what is the FG and Ministry of Finance doing to bolster the CBN's position? Abi is it only a fight for the CBN alone.

Within the next two months, Nigeria would officially be in a recession. With oil price still low, almost non-existent capital spending, and no working fiscal policy, the naira would take a fine beating, and hard as CBN may try, it can't stop a ship that has already sailed. Buhari, Osinbajo, and Adeosun have killed the economy, don't expect Emefiele to salvage anything. He has done his job, don't blame him for the inefficiency of others who cannot do their jobs.

While the CBN is having regular MPC meetings and doing all they can to keep the naira afloat, Osinbajo (the head of the economic team) and Adeosun are holding 1-day economic retreats with fanfare and still running about looking for experts to consult. Buhari is empty, so there's no need talking about him.

-Lord

86 Likes 12 Shares

Re: CBN Resumes Dollar Sales To BDCs by 989900E: 7:25pm On Aug 06, 2016
LordAdam:


You made five points.



It is true they are corrupt, even NAFDAC under Akunyili and the Ministry of Agriculture under Adesina were still corrupt, but they weren't clueless. They made strides and you wouldn't mask the laudable efforts they made just to take a swipe at them for corruption that would take decades to eliminate completely.

The CBN under Emefiele is not clueless. The FG under Buhari and Ministry of Finance under Adeosun are the definition of clueless.



Also true, and it has been a never ending battle since the days of Soludo. Have you forgotten so soon about the CBN's reaction to the Skye Bank saga under Emefiele?



It happens everywhere, and it is the job of the government and relevant agencies to anticipate them. The CBN is obviously doing its best to reduce this, with the regular monetary interventions.



Arrant Nonsense! The last time weak and chronically corrupt was used to describe an office holder of a sensitive position, it was GEJ. After he left it for someone "strong and not chronically corrupt" we know where that got us. Someone that shut down BDCs for blatant abuse of privileges, and then stopped the services of 100s of remittance companies to ensure streamlining of remittances to BDCs for more availability of dollars is weak? Do you know how many toes he stepped on with those decisions.

How old are you?

The over $20b you are talking about, is it your money? Is it FG's money? Is it a crime for people to keep their dollars in Nigerian dorm accounts? If you had $10,000 dollars in your dorm account as savings for a rainy day, would you sell it to the CBN because you are a patriotic Nigeria when you do not have immediate use of the Naira.

Do you not know that those $20b are deposits that the banks use as base for their lending? Or do you want him to rob people of their dollars?




Everyone is out to make money. If you aren't, poor you. The Government created the conditions for hoarding and racketeering to thrive. If the economy was in a better position, would the disparity between official exchange rate and black market rate be this high?

Now that the CBN is trying to close the gap, what is the FG and Ministry of Finance doing to bolster the CBN's position? Abi is it only a fight for the CBN alone.

Within the next two months, Nigeria would officially be in a recession. With oil price still low, almost non-existent capital spending, and no working fiscal policy, the naira would take a fine beating, and hard as CBN may try, it can't stop a ship that has already sailed. Buhari, Osinbajo, and Adeosun have killed the economy, don't expect Emefiele to salvage anything. He has done his job, don't blame him for the inefficiency of others who cannot do their jobs.

While the CBN is having regular MPC meetings and doing all they can to keep the naira afloat, Osinbajo (the head of the economic team) and Adeosun are holding 1-day economic retreats with fanfare and still running about looking for experts to consult. Buhari is empty, so there's no need talking about him.

-Lord

Of course, it is everyone's fault except the CBN's, and Emefiele is just so perfect even with all the policy flip-flops, and somersaults . . . even though it took the CBN 6-7 months to come up with the prevalent Forex policies, it is no fault of theirs that adequate checks and balances are not put in place to make the banks participate in the required manner expected of them in the market.

Emefiele and the CBN's commitment and reactionary policy fabrications is one thing, achieving the desired goal is another. Every other aspect of the economy revolves around sound monetary policies, else fiscal policies would not have the desired effect on the nation's economy.

The CBN spends a fortune in the name of 'mopping up excess liquidity', also raising interests (raising interests dulls the economy), yet the same excess liquidity could be well checked by using the 'Boyo' approach. Ironically, as much as you, I, and everyone else will want the gov't to 'pump' money into the economy, with the tattered monetary policies and uncontrollable fall/epileptic situation of the Niara, it will only worsen the value of the Naira, and further drive up inflation if the proper monetary policies are not in place.

The banks are required to have matching CRRs, but none for the Forex deposits with them -- that's some keg of gunpowder, what happens if any of those banks go bankrupt tomorrow? Many economists, have proffered different smart scenarios to make those idle dollars in them vaults count towards our dollar liquidity . . . but, that will not be in the best interest of the same set of people who put us in this mess in the first place.

I could go on and on . . .

Bottom line: Only results will/can justify/vindicate the CBN and Emefiele (they are trying, but their best is not good enough; not acceptable). The results right now are piss poor. If the governor thinks the presidency or minister of finance are impediments to his good and invaluable work, he can sure do the honorable thing by resigning.

One would expect with the little fall in imports of rice, PMS (from 40m litres to roughly 20m litres a day), and some other stuffs, the Naira should be getting a breather, but hell naw! Isn't that something to ponder over?

That said, quick one:

what is the total monthly Forex demand of the country as a whole?

what is the total Forex inflow (overseas remittances, investors, crude oil sales and other exports)?

And what are our Forex reserves?

That actually is the proper place to start . . . it is pointless doing this without those figures. If the figures given by the CBN are true, then the CBN's leadership does not know what it is doing.
undecided

17 Likes

Re: CBN Resumes Dollar Sales To BDCs by LordAdam: 10:52pm On Aug 06, 2016
989900E:


Of course, it is everyone's fault except the CBN's, and Emefiele is just so perfect even with all the policy flip-flops, and somersaults . . . even though it took the CBN 6-7 months to come up with the prevalent Forex policies, it is no fault of theirs that adequate checks and balances are not put in place to make the banks participate in the required manner expected of them in the market.

Emefiele and the CBN's commitment and reactionary policy fabrications is one thing, achieving the desired goal is another. Every other aspect of the economy revolves around sound monetary policies, else fiscal policies would not have the desired effect on the nation's economy.

The CBN spends a fortune in the name of 'mopping up excess liquidity', also raising interests (raising interests dulls the economy), yet the same excess liquidity could be well checked by using the 'Boyo' approach. Ironically, as much as you, I, and everyone else will want the gov't to 'pump' money into the economy, with the tattered monetary policies and uncontrollable fall/epileptic situation of the Niara, it will only worsen the value of the Naira, and further drive up inflation if the proper monetary policies are not in place.

The banks are required to have matching CRRs, but none for the Forex deposits with them -- that's some keg of gunpowder, what happens if any of those banks go bankrupt tomorrow? Many economists, have proffered different smart scenarios to make those idle dollars in them vaults count towards our dollar liquidity . . . but, that will not be in the best interest of the same set of people who put us in this mess in the first place.

I could go on and on . . .

Bottom line: Only results will/can justify/vindicate the CBN and Emefiele (they are trying, but their best is not good enough; not acceptable). The results right now are piss poor. If the governor thinks the presidency or minister of finance are impediments to his good and invaluable work, he can sure do the honorable thing by resigning.

One would expect with the little fall in imports of rice, PMS (from 40m litres to roughly 20m litres a day), and some other stuffs, the Naira should be getting a breather, but hell naw! Isn't that something to ponder over?

That said, quick one:

what is the total monthly Forex demand of the country as a whole?

what is the total Forex inflow (overseas remittances, investors, crude oil sales and other exports)?

And what are our Forex reserves?

That actually is the proper place to start . . . it is pointless doing this without those figures. If the figures given by the CBN are true, then the CBN's leadership does not know what it is doing.
undecided



I'm not doing this with you. I've got better things to use my time for.

The CBN isn't perfect. They make mistakes too. However, they're doing their best, and the results while not pretty are the best we can hope for right now.

If that's too much for you to handle, that's your problem, not mine.

Good night.

-Lord

21 Likes

Re: CBN Resumes Dollar Sales To BDCs by veekid(m): 7:01am On Aug 07, 2016
Confused nation

1 Like

Re: CBN Resumes Dollar Sales To BDCs by Jengem: 7:02am On Aug 07, 2016
Buhari the dull


Go today, come tomorrow


As unsteady as the wind


Ruling over cows

6 Likes

Re: CBN Resumes Dollar Sales To BDCs by free2ryhme: 7:03am On Aug 07, 2016
grin
Re: CBN Resumes Dollar Sales To BDCs by adeoba2008(m): 7:04am On Aug 07, 2016
We need divine intervention in this country.

Check my signature if you are looking at this comments. A sorire o.

1 Like

Re: CBN Resumes Dollar Sales To BDCs by IMASTEX: 7:05am On Aug 07, 2016
Okay
Re: CBN Resumes Dollar Sales To BDCs by sommy03(m): 7:05am On Aug 07, 2016
What's all these write-ups
Re: CBN Resumes Dollar Sales To BDCs by Shabib(m): 7:06am On Aug 07, 2016
K
Re: CBN Resumes Dollar Sales To BDCs by seunlayi(m): 7:08am On Aug 07, 2016
I tire for this economy even buhari sef don tire, e just the form like say nothing dey happen

2 Likes 1 Share

Re: CBN Resumes Dollar Sales To BDCs by eph12(m): 7:08am On Aug 07, 2016
989900E:


Of course, it is everyone's fault except the CBN's, and Emefiele is just so perfect even with all the policy flip-flops, and somersaults . . . even though it took the CBN 6-7 months to come up with the prevalent Forex policies, it is no fault of theirs that adequate checks and balances are not put in place to make the banks participate in the required manner expected of them in the market.

Emefiele and the CBN's commitment and reactionary policy fabrications is one thing, achieving the desired goal is another. Every other aspect of the economy revolves around sound monetary policies, else fiscal policies would not have the desired effect on the nation's economy.

The CBN spends a fortune in the name of 'mopping up excess liquidity', also raising interests (raising interests dulls the economy), yet the same excess liquidity could be well checked by using the 'Boyo' approach. Ironically, as much as you, I, and everyone else will want the gov't to 'pump' money into the economy, with the tattered monetary policies and uncontrollable fall/epileptic situation of the Niara, it will only worsen the value of the Naira, and further drive up inflation if the proper monetary policies are not in place.

The banks are required to have matching CRRs, but none for the Forex deposits with them -- that's some keg of gunpowder, what happens if any of those banks go bankrupt tomorrow? Many economists, have proffered different smart scenarios to make those idle dollars in them vaults count towards our dollar liquidity . . . but, that will not be in the best interest of the same set of people who put us in this mess in the first place.

I could go on and on . . .

Bottom line: Only results will/can justify/vindicate the CBN and Emefiele (they are trying, but their best is not good enough; not acceptable). The results right now are piss poor. If the governor thinks the presidency or minister of finance are impediments to his good and invaluable work, he can sure do the honorable thing by resigning.

One would expect with the little fall in imports of rice, PMS (from 40m litres to roughly 20m litres a day), and some other stuffs, the Naira should be getting a breather, but hell naw! Isn't that something to ponder over?

That said, quick one:

what is the total monthly Forex demand of the country as a whole?

what is the total Forex inflow (overseas remittances, investors, crude oil sales and other exports)?

And what are our Forex reserves?

That actually is the proper place to start . . . it is pointless doing this without those figures. If the figures given by the CBN are true, then the CBN's leadership does not know what it is doing.
undecided


One thing you should understand is that the CBN still have to run everything by the government and can only initiate policies when given the go ahead by the president.

14 Likes 1 Share

Re: CBN Resumes Dollar Sales To BDCs by Chyvy(f): 7:09am On Aug 07, 2016
Good news. Expecting the dollar to crash soon.

1 Like

Re: CBN Resumes Dollar Sales To BDCs by Mubby4luv(m): 7:10am On Aug 07, 2016
Hmm. Policies
Re: CBN Resumes Dollar Sales To BDCs by abnur14(m): 7:13am On Aug 07, 2016
Alhmdl..I said it few Months ago that The banks won't do any better ..alhj aminu gwadabe God bless ur efforts.. I guess I wld b visiting home soon ..lol
Re: CBN Resumes Dollar Sales To BDCs by amtaken(f): 7:14am On Aug 07, 2016
Government of trial and error.


The street is watching.

1 Like

Re: CBN Resumes Dollar Sales To BDCs by pat077: 7:14am On Aug 07, 2016
The only thing consistent in this administration is inconsistency. I hope they won't reverse it in some weeks time.

2 Likes

Re: CBN Resumes Dollar Sales To BDCs by emeijeh(m): 7:16am On Aug 07, 2016
We also want it @197 angry

1 Like

Re: CBN Resumes Dollar Sales To BDCs by Adesiji77: 7:17am On Aug 07, 2016
Noted. We are watching...
Re: CBN Resumes Dollar Sales To BDCs by CallMeNJay: 7:19am On Aug 07, 2016
BoboFashion:
At what rate biko, may una no liquidate person money.
Did an online transaction last night and i was charged #370 per dollar $ #NigeriaIsFinished

2 Likes

Re: CBN Resumes Dollar Sales To BDCs by naijaboy756: 7:21am On Aug 07, 2016
Till Buhari bury this nation.

2 Likes

Re: CBN Resumes Dollar Sales To BDCs by PrinceEvolution(m): 7:25am On Aug 07, 2016
good point u are a brainny..
989900E:
1. The CBN is both corrupt and clueless at the same time.

2. The banks are some cesspit of profiteering and racketeering, frustrating all monetary policies along with their cronies.

3. Some group of Nigerians (politicians mostly) are going to make most policies null/DOA with the massive amount of stolen monies they need to convert to foreign currencies for easier storage.

4. The CBN under Emefiele is not only weak, but chronically corrupt, thus lacks the will power to really effect the actual policies that should arrest the situation. It is worthy to note, Emefiele supervised the emptying of the treasury, he didn't do it for free, he owes those people, hence he can't really go for the kill (against hoarding). Over $20 billion dollars in dorm accounts in Nigeria, and there is scarcity?

5. Still on hoarding and racketeering, now everyone is doing it -- from Nairalanders to bank staffs, BDCs, government officials, Nigerians overseas, the 'average Joe' . . . but we all want a stable Naira, how ironic?

4 Likes 1 Share

Re: CBN Resumes Dollar Sales To BDCs by SLIDEwaxie(m): 7:26am On Aug 07, 2016
krendo:
Government of U-turns!!!!!
sense is scarce... I hope ubxan pray for one...


This is the layman explanation of what happened...

1. Dollar got scarce... CBN stopped selling to BDC to save the little it had so as to service the official and important things...


2. Dollar reserve has risen because of the Diaspora who remitted more dollars because of the flexible currency the CBN adopted and now, they can be able to sell to BDCs..


How hard is that to comprehend?


I tire for wailers o

7 Likes

Re: CBN Resumes Dollar Sales To BDCs by ChukwuIbrahim: 7:27am On Aug 07, 2016
I don't like dis cbn governor one bit, dude looks like a sabotouer to dis govment to me angry

2 Likes 1 Share

Re: CBN Resumes Dollar Sales To BDCs by onatisi(m): 7:28am On Aug 07, 2016
Nigerian still don't understand that the problem isn't cbn but the country leadership. If buhari is removed today and a sensible intelligent leader is put in power to work with this same cbn ,Nigerians will see the remarkable change that willl happen within 6 months despite low oil prices . There is very little cbn can do without a president that understands and listens to sound economic advice

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