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.

Absolutely.

f

Can somebody pls explain this to me in a simpler english

This government is a huge joke....... trial by error on daily basis....asong ooooo

They are creating another market to source the forex besides the bdc! That market that will not be sanction able!!!

EgunMogaji:


Absolutely.

With this policy ,it is definite that the dollar will go as high as 500N very soon ,the truth is this government has lost control of the whole situation.

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

As they have not being buying from CBN but at the moment the CBN and Commercial will be selling directly to BDC with allocation of 30k usd per week .

Let wait to see the short and long time outcome .

frenzydaniel1:
Can somebody pls explain this to me in a simpler english

honestly bro,it is better not explained . Just pray Nigeria survives it all.

yuppy101:


As they have not being buying from CBN but at the moment the CBN and Commercial will be selling directly to BDC with allocation of 30k usd per week .

Let wait to see the short and long time outcome .

What happens if this policy backfires,they will bring another new policy

onatisi:
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

cbn wants to sell to bdc through the banks @ inter bank rate and they are saying when u buy @ 285 do not sell above 2 percent margin.... the inter bank rate is the floating rate......they don't want a situation where bdc will buy @ 285 because of cbn instructions and then still go and sell 380.

loswhite:
cbn wants to sell to bdc through the banks @ inter bank rate and they are saying when u buy @ 285 do not sell above 2 percent margin.... the inter bank rate is the floating rate......they don't want a situation where bdc will buy @ 285 because of cbn instructions and then still go and sell 380.

but even the banks are selling at 350-380

I have never had faith in Godwin Emefiele as CBN governor since 2014! He has no business being there.

who ever foisted this government on Nigerians will have no peace. what is 30,000 dollars? how would u give a BDC 30,000 dollars and still tell him the profit margin he must use.

I bet with my left ass that a single average customer would buy 30,000 dollars in a single transaction. So where is the logic behind this policy? where is that mediocre kemi adeosun? why must she remain silent, abi she don forget it is her job to keep the economy in a good shape?

Any idiot who blame Jonathan or low oil prices to be the reason behind this downward economic spiral should be whooped and sent to the abyss. do we for get so soon? during the world economic recession of the late 2000 did we have it this bad? abi wearnt there low oil prices, wearnt there corruption back then? so why would this inffectaul government using this above reasons as a yardstick for suffering Nigerians.

Please tell me none of your list were in existence before the resumption of office by this government?

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

Buhari's Legacy:

Cluelessness personified
Trial and error
Economic recession
Insecurity
Soaring corruption
Job losses
Increased crime rates
Extra judicial killings
Police and army brutality and extortion
Poor power supply
Little or no infrastructural development

Nigeria was never ready to ride the floating regime wagon. It's unfortunate buhari yielded to the pressure of the international financial community and other rent seeking local entities.

You cannot successfully run a flexible regime when you are deeply exposed to FX debt, do not have sufficient production capacity to take advantage of the export benefits of floating, you are running a dual FX market, and do not have adequate reserves to meet demand, which is a prerequisite for a parallel model of FX management.

Naira would depreciate more, I'm sure and things would get worse unless the prices of oil appreciate miraculously.

The possibility of a jump in oil prices is slim. So, the bleak outlook and reality would persevere for a long time.

onatisi:
All these policies are becoming too confusing.

It will continue like that. Just like fuel subsidy our institutions aren't matured enough to supervise the charity that is dollar or FOREX. The BDCs will continue to scam the system one way or the other.

onatisi:
but even the banks are selling at 350-380

then the policy is if they buy @ 350 or 380 they should not sell above 2 percent of that margin....normally when they send you money from US Through money gram or western union the banks give u local currency and sell the dollars to cbn. Now cbn wants the bank to sell those dollars to bdc so if they do sell @ 285 or 385 the policy is don't sell above 2% of that margin

Quakertellicus1:
Ah well



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.

First sensible post in a long time on nairaland. People are quick to haul insults and cast blames rather than understand the situation.

Thumbs up for you.

Quakertellicus1:
Ah well



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.

The IPob, won't listen

Hello guys! Its so sad reading through all our comments everyday and not having anyone saying or putting forward better solution towards actualizing good governance rather we abuse and complain forgetting that this government has a four year mandate to deliver good governance. Please let's forget about who is at the top and embrace wisdom so that we all can therapeutically heal our selves from damage of schological danger of bad governance which every poor government leaves behind. This is not about party A or B but is about our future as a nation and individual. Remember there is serious problem all over the world an it seems no one is let out of the problem.

I think cbn should address online transaction rates by all these banks before facing how much a shop sells its commodity, the supermarket(banks) seems more expensive than the shops/kiosks(bdc).

na 9ja do u na 9ja u dey report to.
Sick I am

9japrof:
who ever foisted this government on Nigerians will have no peace. what is 30,000 dollars? how would u give a BDC 30,000 dollars and still tell him the profit margin he must use.

I bet with my left ass that a single average customer would buy 30,000 dollars in a single transaction. So where is the logic behind this policy? where is that mediocre kemi adeosun? why must she remain silent, abi she don forget it is her job to keep the economy in a good shape?

Any idiot who blame Jonathan or low oil prices to be the reason behind this downward economic spiral should be whooped and sent to the abyss. do we for get so soon? during the world economic recession of the late 2000 did we have it this bad? abi wearnt there low oil prices, wearnt there corruption back then? so why would this inffectaul government using this above reasons as a yardstick for suffering Nigerians.

We had saved some dollars at that time, which helped alot, but now our savings is so minute that if government doesn't take some drastic actions, our economy would be worse than where we are presently. Take a look at Angola and Venezuela economies

EgunMogaji:


Absolutely.

a single customer can buy the whole 30k
That is not even enough for a car dealer, so black market rates are surely going to go up too as demand is higher than supply.
This affects everyone as prices of all commodities and services are going up too.
Even bush meat sellers on the express ways are blaming the hike in dollar for increasing prices
I wonder what that has to do with it

We have plenty land and resources so its time to start looking at other things that Nigeria can do to start exporting to generate dollars.
what happened to our cocoa farms and rubber plantations.
No light so we cant manufacture.

I was at erinjesa water falls last week and was heartboken to see what we have right here in Nigeria that should be generating wealth but isnt
The road to get there alone is a death trap.
God help Nigeria

9japrof:
who ever foisted this government on Nigerians will have no peace. what is 30,000 dollars? how would u give a BDC 30,000 dollars and still tell him the profit margin he must use.

I bet with my left ass that a single average customer would buy 30,000 dollars in a single transaction. So where is the logic behind this policy? where is that mediocre kemi adeosun? why must she remain silent, abi she don forget it is her job to keep the economy in a good shape?

The logic behind this is simple....we are not earning enough dollars to buffer the naira and take care of imports and everything else. So...we conserve, or you end up with N1million to one dollar in two months.

Any idiot who blame Jonathan or low oil prices to be the reason behind this downward economic spiral should be whooped and sent to the abyss. do we for get so soon? during the world economic recession of the late 2000 did we have it this bad? abi wearnt there low oil prices, wearnt there corruption back then? so why would this inffectaul government using this above reasons as a yardstick for suffering Nigerians.

1.During the recession in 2008...we had $60BN in reserves. Even then , Soludo did the same things Emefiele did now...on a lower scale.

Not now...when we had $32bn.

Also...oil prices never fell below $80 back then. Not now...when they have been below $50 since Bubu took over.

2.Jonathan is only slightly to blame....in that he had oil prices as high as $100 forom 2011-14....yet our reserves went down by $30bn. Poor savings ethics, if you ask me.

But even if Jonathan had saved....and had told Amaechi and co to take a hike back then....that means.....the current economic crisis would have started in 2017(See Saudi Arabia....$724bn in the reserves at the start of the oil price fall in 2014....and by end of 2015 lost $100bn of that. At best Nigeria could have saved $100bn. You do the math.).

Our problem really is that our economy is not on a stable footing. We have relied on resources whoseprices we do not control (Oil and cocoa, the two main things we sell for money....have their prices controlled in London and New York, not in Lagos or Abuja. And also...more and more countries are now oil producers. The US....which used to buy half our oil in 1996, now buys 3%...because they have become a producer of oil thanks to technology)

What I think this APC govt should do(instead of waiting for oil to rise again) is face facts, cut costs (no new cars or airplanes) and focus on fixing power and transport and education...so that we can achieve industrial growth....which makes our economy more productive, makes us an exporter of goods whose prices we can control, and reduces our dependence on imported stuff....and by extension, reduces dollar flight....improving our dollar revenues overall.

Assignment: Read Managing the Dutch disease in Nigeria.Written in August 2004 by the way...http://nigeriaworld.com/articles/2004/aug/062.html

Hardship is going to meet with hardship

motoyo:
Hello guys! Its so sad reading through all our comments everyday and not having anyone saying or putting forward better solution towards actualizing good governance rather we abuse and complain forgetting that this government has a four year mandate to deliver good governance. Please let's forget about who is at the top and embrace wisdom so that we all can therapeutically heal our selves from damage of schological danger of bad governance which every poor government leaves behind. This is not about party A or B but is about our future as a nation and individual. Remember there is serious problem all over the world an it seems no one is let out of the problem.

Thank you.

My solutions have been posted upthread by the way.

loswhite:
then the policy is if they buy @ 350 or 380 they should not sell above 2 percent of that margin....normally when they send you money from US Through money gram or western union the banks give u local currency and sell the dollars to cbn. Now cbn wants the bank to sell those dollars to bdc so if they do sell @ 285 or 385 the policy is don't sell above 2% of that margin

Indirectly the cbn is creating another scarcity of dollars because the bdc will tell you that he has exhausted his 30k and needs to source it elsewhere at the supplier price. Even the FG isnt following the floating policy they initiated . They will soon dump this floating policy by december

nastyesco:
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

do u understand English?

Quakertellicus1:


The logic behind this is simple....we are not earning enough dollars to buffer the naira and take care of imports and everything else. So...we conserve, or you end up with N1million to one dollar in two months.



1.During the recession in 2008...we had $60BN in reserves. Even then , Soludo did the same things Emefiele did now...on a lower scale.

Not now...when we had $32bn.

Also...oil prices never fell below $80 back then. Not now...when they have been below $50 since Bubu took over.

2.Jonathan is only slightly to blame....in that he had oil prices as high as $100 forom 2011-14....yet our reserves went down by $30bn. Poor savings ethics, if you ask me.

But even if Jonathan had saved....and had told Amaechi and co to take a hike back then....that means.....the current economic crisis would have started in 2017(See Saudi Arabia....$724bn in the reserves at the start of the oil price fall in 2014....and by end of 2015 lost $100bn of that. At best Nigeria could have saved $100bn. You do the math.).

Our problem really is that our economy is not on a stable footing. We have relied on resources whoseprices we do not control (Oil and cocoa, the two main things we sell for money....have their prices controlled in London and New York, not in Lagos or Abuja. And also...more and more countries are now oil producers. The US....which used to buy half our oil in 1996, now buys 3%...because they have become a producer of oil thanks to technology)

What I think this APC govt should do(instead of waiting for oil to rise again) is face facts, cut costs (no new cars or airplanes) and focus on fixing power and transport and education...so that we can achieve industrial growth....which makes our economy more productive, makes us an exporter of goods whose prices we can control, and reduces our dependence on imported stuff....and by extension, reduces dollar flight....improving our dollar revenues overall.

Assignment: Read Managing the Dutch disease in Nigeria.Written in August 2004 by the way...http://nigeriaworld.com/articles/2004/aug/062.html

Will they achieve that in 2yrs??

You mind sharing the reason for the 30,000 dollars weekly cap?

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.

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.