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CBN Directs Bdcs Not To Sell FX Above 2% Margin - Business (3) - Nairaland

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CBN Directs Banks To Pay Cash To Forex Users / CBN Introduces New FX Rate For Bdcs / CBN Directs Banks To Provide For Foreign Currency Loans (2) (3) (4)

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Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by solid3(m): 7:54am On Aug 10, 2016
If this is strictly adhered to by the BDC operators, then this would mean a significant drop in the black market rate, it will also curb round tripping which is what most of the people reading this do.
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by onatisi(m): 7:57am On Aug 10, 2016
Just as if I knew this was coming ,I told some ppl here last month to buy enough dollars down,they apparently thought I was joking

2 Likes

Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by OptimusJnr(m): 7:57am On Aug 10, 2016
Does the CBN know that these banks also inflate their interest rate percentage when they sell to BDCs ,and when they are buying at inflated rates ,what do you want them to sell at ?
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by uyplus(m): 8:02am On Aug 10, 2016
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.



Pls dont even mind biased and uninformed persons on this forum who ofter argue otherwise. Obasanjo saved $25bn when oil was $70pb, Yar’Adua saved $30bn when oil was $88pb (within his shortlived tenure), GEJ cldnt save when oil stabilised above $100pb over 41months. They governors got tired of the fact that each time they regrouped, the balance from their previous meeting had reduced further. So it means the FG were recklessly withdrawing monies with no approval. I wonder what would have happened if there was no TSA and GEJ government was still in power with corruption unabated and multiple accounts still available as conduits, Nigeria would have been experiencing the Zimbabwean crisis.

The CBN should have done this ever since this regime took over power, because it was due to their poor monitoring that caused the BDCs to sell above the recommended 2% eachtime they got forex from local banks, although the forces of demand and supply played out!

This policy is good because it will checkmate inflation and also reduce dollar spending which is the only way out of this mess. As a country, we must strive towards achieving self sufficiency by reducing our reliance on imports becasue we will never grow if continue to tow this path of import forever. Nigeria's situation can be analogous to nursing mother who wants to wean her child of breast milk because she knows she wouldn't be doing it forever. Although at the early stages, she may appear mean because she is choosing take a firm, on the long run, both parties will become winners.

2 Likes

Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by Nobody: 8:09am On Aug 10, 2016
berrystunn:


Will they achieve that in 2yrs??

it does not matter who is in charge....it is going to take us a long time to get used to the fact that resource dependency is not good for us.
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by Josmila(m): 8:15am On Aug 10, 2016
donofdons:
fellow nigerians...the solution is to invite lucifer to take over the country since God have clearly failed. we will defeat christ at the armagadon and throw him into hell the mount an invasion of heaven where we will overthrow jehovah and put lucifer on the throne thereby forever ending the suffering of mankind. we need nigeria on the side of lucifer before that day which is coming soon...please add me if you want to join us and be kings on earth


You're mad and have no one to tell you

1 Like

Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by 1stdammy: 8:18am On Aug 10, 2016
donofdons:
fellow nigerians...the solution is to invite lucifer to take over the country since God have clearly failed. we will defeat christ at the armagadon and throw him into hell the mount an invasion of heaven where we will overthrow jehovah and put lucifer on the throne thereby forever ending the suffering of mankind. we need nigeria on the side of lucifer before that day which is coming soon...please add me if you want to join us and be kings on earth

End time agent(OP), end time reasoning, end time post.........indeed the end as come!
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by kolaaderin: 8:19am On Aug 10, 2016
SycophanticGoat:
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:

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
Epileptic or no infrastructural development
Elimination of the middle class due to skyroted price of essential commodities

Mr man, u can migrate to Benin and let u be.
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by d4gmail: 8:24am On Aug 10, 2016
Well

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.


Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by adekayo1234(m): 8:44am On Aug 10, 2016
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.


This is the best comment so far.... I totally agree with you. But I keep wondering, when will Nigerians finally raise their voices against the wastefulness of our two chambers. One of them must be scrapped

1 Like

Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by frenzydaniel1(m): 8:50am On Aug 10, 2016
onatisi:
honestly bro,it is better not explained . Just pray Nigeria survives it all.

Well den, may b i shld jst chillax jst dey sip my odekuku jare
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by GreatGatsby(m): 8:59am On Aug 10, 2016
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

There is alot of sense in all your posts on this thread, I like the fact that you state out the problem and state a solution also, it's men like you I like discussing with, not just people who see problems and never proffer any solution.

1 Like

Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by wristbangle: 9:01am On Aug 10, 2016
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.



Spot on sir
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by barclays22(m): 9:03am On Aug 10, 2016
loomer:
Na which kind school all these people wey dey CBN go self?

Confusion break bone.
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by adegeye38(m): 9:10am On Aug 10, 2016
ohenhen1:
The question I want to ask is why did it take the CBN this long to give the directive?

To give some powerful people the chance to make billions
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by loswhite(m): 9:22am On Aug 10, 2016
onatisi:

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
the scarcity is already there. It is not the policy that is creating it. There is scarcity because of dwindling foreign reserved . CBN is only trying to contain the situation
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by SirAweezy(m): 9:26am On Aug 10, 2016
solid3:
If this is strictly adhered to by the BDC operators, then this would mean a significant drop in the black market rate, it will also curb round tripping which is what most of the people reading this do.

You must be thinking this is 2+2=4... expand the equation and look for X. The answer isn't far fetched.

Let me give you some expo... go back read some comments that talk about developing the economy internally. (that's the answer sir)
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by ezef2k4(m): 9:37am On Aug 10, 2016
donofdons:
fellow nigerians...the solution is to invite lucifer to take over the country since God have clearly failed. we will defeat christ at the armagadon and throw him into hell the mount an invasion of heaven where we will overthrow jehovah and put lucifer on the throne thereby forever ending the suffering of mankind. we need nigeria on the side of lucifer before that day which is coming soon...please add me if you want to join us and be kings on earth


Revelations 19:
19 And I saw the beast, and the kings of the earth, and their armies, gathered together to make war against him that sat on the horse, and against his army. 20 And the beast was taken, and with him the false prophet that wrought miracles before him, with which he deceived them that had received the mark of the beast, and them that worshipped his image. These both were cast alive into a lake of fire burning with brimstone.

That is your expected end ..... LAKE OF FIRE.
smh for you.
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by Nobody: 10:16am On Aug 10, 2016
donofdons:
fellow nigerians...the solution is to invite lucifer to take over the country since God have clearly failed. we will defeat christ at the armagadon and throw him into hell the mount an invasion of heaven where we will overthrow jehovah and put lucifer on the throne thereby forever ending the suffering of mankind. we need nigeria on the side of lucifer before that day which is coming soon...please add me if you want to join us and be kings on earth


Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by SycophanticGoat: 10:16am On Aug 10, 2016
kolaaderin:


Mr man, u can migrate to Benin and let u be.

You know, that wouldn't be a bad I dear tho.. cheesy
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by rhymaholic: 10:24am On Aug 10, 2016
On paper the directive would be effected but on the real it is impossible. CBN keeps deceiving themselves.
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by mokset123: 11:22am On Aug 10, 2016
GreatGatsby:


There is alot of sense in all your posts on this thread, I like the fact that you state out the problem and state a solution also, it's men like you I like discussing with, not just people who see problems and never proffer any solution.
Difficult solutions need to be enforced by this government now instead of hoping on increase in crude oil

1. Cut cost - reduce all salaries of government workers on CONTISS, CONUASS, CONRAISS, CONTOPSAL, CONMESS, CONHESS, CONJUSS, CONPASS except for those on conpss as they have the least remuneration in civil service.

2 operate a unilateral assembly, senate should be scrapped leaving only the house of reps and cut their salaries and allowances to that of government workers

3 pension for former heads of states, presidents and chief of staff, heads of civil service, etc be slashed to something reasonable

4 pensions of other government retirees in excess of 400000 a month be slashed

5 The numbers of executive aides for the president and ministers cut, their salaries and allowances cut drastically

6 promote transparency and accountability in use of government funds

7 fomulate policies that would drive industrial development and growth

8 all the money saved can then be channelled into funding education, ict, agriculture, manufacturing, road and rail construction

2 Likes

Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by bashydemy1: 11:41am On Aug 10, 2016
SycophanticGoat:
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:

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 thought out policies
Epileptic power supply
Little or no infrastructural development
Elimination of the middle class due to skyroted price of essential commodities


If after 16 yrs you still have faith in PDP then you are a disgrace to your Household.

If after 6yrs you still have faith in GEJ Then you are a disgrace to yourself, Your family, Your friends and the entire human race..


Summary of GEJ's Legacy

1. Cluelessness personified of the highest order.

2. No trial at all

3. Indebted Nigeria in the name of keeping the economy from collapsing.

4. Insecurity of the highest order that lead to lost of millions of life and making millions homeles also lead to the missing chibok girls.

5.Legalization of corruption the worsestest in the history of Nigeria.

6.No Job at all not to talk of loosing job.

7. Legalized and Increase crime rates by empowering militants.

8. Extra judicial killings

9. Police and army brutality and extortion to the extent of sharing the money means to armed the militatry in the fight against insurgent.

10. No good policy all he know is stealing is not corruption.

11. No power supply at all.

12. No infrastructural development at all even the 2nd Niger bridge is a fail promise.

13. Using military to harrass a siting Governor and also using them to rig elections.

1 Like

Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by bashydemy1: 11:43am On Aug 10, 2016
ohenhen1:
The question I want to ask is why did it take the CBN this long to give the directive?

If the directives was given then, so haters will tag the Govt of trying to impose on BDC's, But with the directives now we will all support the Govt.
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by gbodimowo(m): 12:45pm On Aug 10, 2016
SycophanticGoat:
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:

*Cluelessness personified
*Trial and error
*Economic recession
*Insecurity
*Soaring corruption
*Lack of regard for the rule of law
*Media propaganda and doling out of conflicting info
*Political witch hunt
*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 skyroted price of essential commodities







This is just the summary?
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by menxer: 1:18pm On Aug 10, 2016
nastyesco:
Is it Dollar that they don't have that CBN is instructing them on the margin to sell undecided undecided
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

So paying your child's school fees is a guarantee your child will have the best result at end of term?
It doesn't follow.

For a system to work all players involved must want it to work.
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by Cargoed: 4:23pm On Aug 10, 2016
Well is it not another way to tell BDCs to go and look for another business to do.

A BDC deposits N30mill as security fee.

He now get USD30000/wk so profit is USD600 based on only 2% markup cbn rule

He makes USD2400/mth in 3mths he makes USD7200.

But if he takes his 30mill Deposit and gives to CBN as Treasury bills He makes USD10,285 @ USD350/N1
in this case he did not have to pay staff rent an expensive office or bother risking carrying money about.

Just my observation....
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by berrystunn(m): 5:33pm On Aug 10, 2016
Quakertellicus1:


it does not matter who is in charge....it is going to take us a long time to get used to the fact that resource dependency is not good for us.

Our institutions is dead....
On till we fix it noting will work..
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by Nobody: 6:54am On Aug 11, 2016
onatisi:

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

Changes is inevitable . Some many approach to problem till we get lasting solution
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by onatisi(m): 7:01am On Aug 11, 2016
yuppy101:


Changes is inevitable . Some many approach to problem till we get lasting solution
They want to save cost and forex but yet budgeted 3.7 billion naira to import BMWs from Germany,!
And despite oil price slash and dwindling revenue ,they still passed and signed the budget with all these bogus figures

Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by Nobody: 7:41am On Aug 11, 2016
onatisi:

They want to save cost and forex but yet budgeted 3.7 billion naira to import BMWs from Germany,!
And despite oil price slash and dwindling revenue ,they still passed and signed the budget with all these bogus figures

Yes so I hear . But I know change start from us , we have lost our Right ever since if find out they have break us as galant youth . When last did will stand up and riot on what will want ?
Our so called Senators deserves to be stamp out . The fact is that they careless about who they are representing but we keep 98% on Sia baba . I should to remember a quote in Africa Shrine wa back I do visit . Say Our leader are Jokers and truly that is what we are .
Mind you those daddy you see that rules till date have a clear fight to gain their freedom . Unlike what will see today all fight .
The best fight a man can fight is human right . Jst check out those that fought such fight . There names is written on marble .
Re: CBN Directs Bdcs Not To Sell FX Above 2% Margin by onatisi(m): 8:11am On Aug 11, 2016
yuppy101:


Yes so I hear . But I know change start from us , we have lost our Right ever since if find out they have break us as galant youth . When last did will stand up and riot on what will want ?
Our so called Senators deserves to be stamp out . The fact is that they careless about who they are representing but we keep 98% on Sia baba . I should to remember a quote in Africa Shrine wa back I do visit . Say Our leader are Jokers and truly that is what we are .
Mind you those daddy you see that rules till date have a clear fight to gain their freedom . Unlike what will see today all fight .
The best fight a man can fight is human right . Jst check out those that fought such fight . There names is written on marble .
God bless you . It seems you and i are on the same page

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