The Central Bank of Nigeria on Tuesday directed Bureau De Change operators not to sell foreign exchange above two per cent margin of the buying rate.

A statement by W.D Gotring, the Acting Director, Trade and Exchange Department of CBN, also directed authorised dealers not to sell foreign exchange to any BDC more than a maximum of 30, 000 dollars per week.



According to the statement, a BDC shall nominate its preferred dealer or a bank to procure the said amount from only that bank in a week.

It also said that the selling rate by the dealer to BDCs should be the buying rate from International Money Transfer Operators plus a margin not exceeding 1.5 per cent.

It said, “Foreign exchange cash purchased by BDCs shall be sold to foreign exchange end-users at a rate not exceeding two per cent margin above the buying rate.

“The two per cent margin above shall be applicable to all funds to be retailed by the BDCs regardless of sources of funds.’’

Read more from RAW GLOBAL NEWS via http://www.rawglobalnews.net/cbn-directs-bdcs-not-to-sell-fx-above-2-margin/

All these policies are becoming too confusing.

They won't listen.

If at this point, you still have faith in this government, then you're a disgrace to your household and you're absolutely irredeemable..

Summary of Buhari's Legacy:

[b]*Cluelessness personified
*Confusion
*Directionless
*Helpless
*Trial and error
*Economic recession
*Insecurity
*Soaring corruption
*Illegal recruitment for children of the elites (CBN, FIRS, NNPC, etc)
*Lack of regard for the rule of law
*Media propaganda and doling out of conflicting info
*Political witch hunt and vindictiveness
*Nepotism/lopsided appointments
*Religious bigotry
*Divisiveness
*Herdsmen massacre unattended to
*Segregation
*Blame games (never takes responsibility for woeful performance) and body odour leadership
*Junketing for fun on tax payers money
*Goofing at important events thereby disgracing Nigeria
*Business closures and Job losses
*Increased crime rates
*Extra judicial killings
*Police and army brutality and extortion
*Poor thought out policies
*Cancelation of election promises
*Epileptic power supply (made history for delivering 0 MW of power supply to the Nigerian populace)
*Militancy uprising
*Increased death toll within the country
*Little or no infrastructural development
*Elimination of the middle class due to skyrocketed price of essential commodities
[/b]

like the poster above, they won't listen

Is it Dollar that they don't have that CBN is instructing them on the margin to sell
This is like a father who didn't pay his child sch fees but told him that he must come first at the end of the term

Story for the gods..

The question I want to ask is why did it take the CBN this long to give the directive?

Here we go again

Kk

GOVERNMENT OF NO DIRECTION, CONFUSED, TRIAL n ERROR FULL OF OLODOs

Trial and error economics by trial and error team of of economists

1+1=

Talk is cheap!

Ineffective policy of APC government

Confused regime

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BDC are business to make profits ,the will follow the law of demand and supply, not CBN policy.

By setting maximum amount the BDC can buy per day wich appears very low (for obvious reason) demand will still outstrip supply and force black market rate up the more.

A usual, the impact might not b felt by the common man as only the privileged few will benefit from th low margin.

It would have made better sense if CBN has adequate dollar reserves.

May God help us out of this quagmire.

$30,000 a week? This will spell doom for our economy

nice one

ohenhen1:
The question I want to ask is why did it take the CBN this long to give the directive?

my brother same thing am curious to know about .. It's shows this government has been encouraging corruption in this regard .. Which sensible govt will close it's eye against the margin between official rates and black market rate without doing sometime about it .. Sometimes u wonder where this people fix their brain in Abuja , it's just acting out like a movie script doesn't seem realistic with wat this government is doing .

Unfortunately non of these policies will work. The fundamental problem hasn't yet been addressed. The demand for this comodity far exceeds its supply so please what do you expect? A hike in price. No matter how you regulate it, it will still find its way to the market at an above average price because fact is there is no dollar.

Please what's the impact of this policy on individuals and business men and women, I don't understand.

Also what's the positive effects it has on the economy ?

It's like the Cbn is now the ministry of finance , what the heck do we have the ministry of finance for , ever since the economic issh started it has alys been the Cbn trying to curb things . Are they not suppose to work Hand in leg with the ministry of finance .

Ah well

datola:
By setting maximum amount the BDC can buy per day wich appears very low (for obvious reason) demand will still outstrip supply and force black market rate up the more.

May God help us out of this quagmire.

The only way out of this quagmire is by getting a stable source of dollars....and selling oil or agric or mining products is not a way to geta stable source of dollars.Importing things that one can make only makes things worse.

chomchom1:
Confused regime

kenbee:
Ineffective policy of APC government ]
[quote author=Dottore post=48349594]Trial and error economics by trial and error team of of economists

obontami:
always putting out stupid policies as usual

The problem I have with critics of this government is that most of them don't tell you why they think the government is doing the wrong thing.

Nigeria's economy has been dependent on the revenue it earns from the resources it sells. That has been the way since independence. When our agric went down in the 1970's, we switched to oil. When oil went down in the year 1982...we were exposed as a resource dependent economy, and our naira began to fall as a result of lack of forex (The 80's were a hard time).

Now, oil prices went up, and things got better. We even saved during the years of plenty. But when GEJ came in, the saving stopped, and the waste began. When Buhari came in, things had started getting bad, and have gotten worse.

Now, if you think I am here to blast GEJ, SORRY. Neither am I here to praise Buhari.

The Nigerian economy is suffering because WE NO LONGER HAVE ENOUGH DOLLARS. And CBN is hoarding the dollars SO THAT the naira stays strong. That is our economic policy for now. We need to diversify.....but that is going to take a long time.(Sorry...GEJ only increased cocoa production. Everything else failed).

In other words...the Nigerian economy, like most African economies, IS not, and has never been healthy. They do well when the price of the resource they are selling goes up. And they look like marasmus victims when the price of the resource they sell goes down.



So, I wonder what is foolish....either allowing the dollars to flow...so that our currency becomes weak like Zimbabwe dollar...and inflation shoots up.....or conserving dollars....which is harsh,but is sane for now.

But....here is where I bash APC.....we need to do the needful, cut waste in govt spending, spend more on power and education, and implement austerity....cutting the budget massively, especially for the National Assembly......so that we can become a stable industrial power...after ten years of economic hardship.

We need to leave that oil alone.


So, stop looking for oil money.....and stop looking for goodies. We, and our government, have to shape up. Serious countries do not rely on oil. Serious countries rely on the works of their hands.

P.S: Calling me a non-existent creature means you have missed the point.

datola:
By setting maximum amount the BDC can buy per day wich appears very low (for obvious reason) demand will still outstrip supply and force black market rate up the more.

May God help us out of this quagmire.

this is exactly what I was thinking. And I begin to wonder where is the floating policy again if cbn is trying to determine the selling price of the dollar? All these will only push the dollar higher

lol. . .CBN policies have always been trial & error. How do you curtain a good businessman from maximizing profit occasioned from government's systemic weakness/failure. The only remedy to this whole issues is to be an exporting nation. And see BDC activities naturally under control.

Na which kind school all these people wey dey CBN go self?