While the move seem the sensible thing to do, here are my takes

1. Do the banks have enough FX cash to handle payouts in the same FX? People would experience delays in cashing out due to scarcity and or the banks waiting for CBN to sell to them or the IMTOs repatriating the FX back

2. Aren't the banks FX position funded by the CBN? If you allow FX cash withdrawals through the banks, you are depleting the FX reserve to fulfill the payouts which is more or less recycling your foreign reserve at a cost

3. While it seem laudable, the best benefit would've been achieved if the IMTOs are allowed to connect directly with the BDCs and also smaller agents, that way it would help attract hoarders into releasing their stash instead of hoarding.

4. Hoping this won't dollarize the economy because everyone who withdraws from their account are bound to look for mallam instead of selling to BDCs or Banks ....why the need to withdraw sef if you're not traveling?

5. I'm also hoping its not a trap by CBN to lure the funds in and trap them by telling the banks to frustrate withdrawals. When the customers can't get the cash, they'll be forced to accept cash equivalent in Naira. Government can at the end of the day force a conversion of all fx in domiciliary accounts.

ikorodureporta:


Source: https://nairametrics.com/2020/11/30/cbn-allows-diaspora-remittances-to-be-withdrawn-in-dollars/

After they made me lose over 700k in September

Ayo2004:

Oga,can u explain if the naira will increase value or not?if not,abeg,don't quote me again...do you think an average Nigerian without knowledge in that area will understand the impact of that action by CBN?as rich as Bill Gates,he can't understand everything,he might not have experienced legal knowledge,that's why he will consult his lawyer for legal advice,una go just come here dey form oversabi

There's nothing like oversabi. He was excusing his ignorance based on being a science student, which is ridiculous. I don't know everything either, but I don't go about excusing my ignorance with being a social science student. You're the one doing oversabi.

lowkeybahdguy:
Time to watch and see how this one plays out. This move appears to have been borne out of desperation by CBN. The same cbn that flayed receiving foreign currency deposits in February this year, has now made a full u-turn.

https://nairametrics.com/2020/02/14/cbn-condemns-receiving-foreign-currency-in-transfers/

Interesting times ahead..

u dey mind dem?
This CBN guvnor Na real olodo him be. Any where belle face.

SenecaTheYonger:


We are an import based country. More than half the country are biz men and women into importation. They have to source for dollar from their savings to import goods. When they witness how expensive the dollar is, they’ll also raise the price of their goods to meet up. It’s pretty simple really

We are a import nation does not mean we import everything.

Most of our foods are home grown and are affected by inflation due to greed of wholesalers and retailers, violence in the north, kidnapping and bad roads, double taxation all these causes prices of goods to increase.

The goods affected by dollar crises in Nigeria are mostly luxury goods and goods not produced in Nigeria.

Local products are not affected by dollar rate.

Interesting times ahead.. u dey mind dem?This CBN guvnor Na real olodo him be. Any where belle face.

samsard:
There's nothing like oversabi. He was excusing his ignorance based on being a science student, which is ridiculous. I don't know everything either, but I don't go about excusing my ignorance with being a social science student. You're the one doing oversabi.

I was trying to get knowledge to eradicate my ignorance on this certain matter so I am in no way an oversabi...the part about the science student simply means I did not study anything related to the topic so it is not easy to completely understand even though I understand some parts as I studied science subject,then u went to bring on to bring examples of Bill Gates and English language which is completely irrelevant..even though many Nigerians use I am a science student,I am an arts student,I did not offer this in some ridiculous situations,I advise u try to understand genuine situations,If a person brings an accounting document and tell me to help with a balance sheet,I will tell him or her proudly that I can't help because I am not too knowledgeable in that aspect as science is my area of focus but I wouldn't mind learning...that's how I learn things I don't know

P.S;I don't think u know the answer so please don't quote me

I thought Nigerians are smart now, I guess was and am wrong,

no look far, when has any policy brought up in this country in the last 6yrs beneficial to the average man and the economy?

Whahala for who no get person wey they send am dollar

thebosstrevor1:


We are a import nation does not mean we import everything.

Most of our foods are home grown and are affected by inflation due to greed of wholesalers and retailers, violence in the north, kidnapping and bad roads, double taxation all these causes prices of goods to increase.

The goods affected by dollar crises in Nigeria are mostly luxury goods and goods not produced in Nigeria.

Local products are not affected by dollar rate.

Many equipments used in production of local products are imported..so it affects

thebosstrevor1:


We are a import nation does not mean we import everything.

Most of our foods are home grown and are affected by inflation due to greed of wholesalers and retailers, violence in the north, kidnapping and bad roads, double taxation all these causes prices of goods to increase.

The goods affected by dollar crises in Nigeria are mostly luxury goods and goods not produced in Nigeria.

Local products are not affected by dollar rate.

Man, why you guys keep lying to yourself? So because we grow rice, Is rice the only thing a man need?

ILoveDemMANNA:

Nairalanders, listen to this bvllshit at your own peril.
Na so dem go dey type lies and rubbish online with such colossal confidence.
Tueh!

I think the person you quoted is right
Everytime the USD dips
Your naira just got a lil more useless
That's the truth
Tho I dont know if it will get to N1k per usd

If it does
Then naija is done

koning:
Nigerians take every news on face value. Have you ever attempted to collect dollar from any Nigerian bank as an individual?.
Let's not be naive. The banks will forever tell you that Dollar is not available.

After you don wait tire. You go collect Naira to solve your pressing problem.
This policy is only good on paper. The reality is that banks will never 'have' the Dollar to pay out. Not even $100.

You be clown.. The dollars is coming from overseas. What concerns bank and having dollars for payout?

Abroad bank send you dollars... The bank serving as a receiving end.. And you go collect your thing.

If that particular bank doesn't have, go island.

bigtt76:
While the move seem the sensible thing to do, here are my takes

1. Do the banks have enough FX cash to handle payouts in the same FX? People would experience delays in cashing out due to scarcity and or the banks waiting for CBN to sell to them or the IMTOs repatriating the FX back

2. Aren't the banks FX position funded by the CBN? If you allow FX cash withdrawals through the banks, you are depleting the FX reserve to fulfill the payouts which is more or less recycling your foreign reserve at a cost

3. While it seem laudable, the best benefit would've been achieved if the IMTOs are allowed to connect directly with the BDCs and also smaller agents, that way it would help attract hoarders into releasing their stash instead of hoarding.

4. Hoping this won't dollarize the economy because everyone who withdraws from their account are bound to look for mallam instead of selling to BDCs or Banks ....why the need to withdraw sef if you're not traveling?

5. I'm also hoping its not a trap by CBN to lure the funds in and trap them by telling the banks to frustrate withdrawals. When the customers can't get the cash, they'll be forced to accept cash equivalent in Naira. Government can at the end of the day force a conversion of all fx in domiciliary accounts.

1.The Nigerian Bank doesn't generate the fx.
The FX is coming from abroad. It's a transaction nau.

4. Is the aim not to dollarize the economy before??
Or why dyou think the dollar is gaining?

You spoke long but you don't understand.

Fibonacci88:

Oga shut up. How does remittances to individual account boost foreign reserve. Do u even know what makes up foreign reserve. Export from crude oil is what makes up majorly foreign reserve for Nigeria. Try schooling urself a bit instead of jumping from thread to thread praising an incompetent presidency.

Lol.
He has a simple mind.

Ok

BabaOwen:
Nah wah o... Emefiele is one of the most terrible CBN governor

in fact,his policies are not usually well taught out,he has done more harm than good to the economy

thebosstrevor1:


This is the policy CBN has been using.

Before, you can withdraw your dollars from your domiciliary account and go change it in the black market.

It was a normal thing to do before people started rejecting naira

with the emergence of mobile payments, it's going to be hard for any company to enforce such practices, nigeria is sleeping, debt to gdp ratio of Nigeria is 15% america 101% china 300%

Poor governance and policies are our biggest issues.

bigtt76:
While the move seem the sensible thing to do, here are my takes

1. Do the banks have enough FX cash to handle payouts in the same FX? People would experience delays in cashing out due to scarcity and or the banks waiting for CBN to sell to them or the IMTOs repatriating the FX back

2. Aren't the banks FX position funded by the CBN? If you allow FX cash withdrawals through the banks, you are depleting the FX reserve to fulfill the payouts which is more or less recycling your foreign reserve at a cost

3. While it seem laudable, the best benefit would've been achieved if the IMTOs are allowed to connect directly with the BDCs and also smaller agents, that way it would help attract hoarders into releasing their stash instead of hoarding.

4. Hoping this won't dollarize the economy because everyone who withdraws from their account are bound to look for mallam instead of selling to BDCs or Banks ....why the need to withdraw sef if you're not traveling?

5. I'm also hoping its not a trap by CBN to lure the funds in and trap them by telling the banks to frustrate withdrawals. When the customers can't get the cash, they'll be forced to accept cash equivalent in Naira. Government can at the end of the day force a conversion of all fx in domiciliary accounts.

The policy by CBN has nothing to do with banks but IMTOs. Banks are not licensed to be IMTOs but can be agents of IMTOs. It's not the bank that's generating the Fx. They are only agents to disburse the funds. Before everyone can collect USD from western union, the policy is only saying if someone sends you money via western union or other various channels, you can collect the cash in USD or have it sent to you dom account.
I only hope the IMTOs implement it soon

thebosstrevor1:


This is the policy CBN has been using.

Before, you can withdraw your dollars from your domiciliary account and go change it in the black market.

It was a normal thing to do before people started rejecting naira

The topic is misleading. The policy has nothing to do with banks but IMTOs.

thebosstrevor1:




Without your consent.

Are you bigger than CBN that implemented the policy

Them dae mad, what did they contribute to me getting the money. How my money use concern them

You are spot on! For about 3 months i am unable to withdraw the dollar sent into my dom account by my sibling because the bank is saying i can't withdraw because of CBN policy.

So i believe just like me many people are having their dollar in dom account without access.

I made a comment here that how can Nigeria be sourcing for hard currencies to boost our foreign reserves and CBN was discouraging Nigerians in diaspora from sending money home.

I also remembered asking which kind Economy sense iis this coming from a whole CBN? Then i made a submission that dollar will hit $/500

banom:


Bro say what you know and stop giving people advice on the things you do not understand.

The new policy will actually help naira in terms of exchange rate versus other foreign currencies.

One of the reasons a dollar exchanges for about 500 naira at the black market while exchanging for below 400 naira at the bank is because the bank wouldn't give you dollars to go and exchange at the black market.
It somehow contributed to scarcity of dollars at the black market.
But now when the dollars starts flowing to the black market through People who cashed their diaspora remittances, they will have more dollars, and that might contribute to exchange rate fall of the dollars and increase of the naira at the black market. ( Due to the selling of dollars and the buying of naira by diaspora beneficiaries exchanging their dollars for naira).

The ignorance on this thread is very suffocating..

I suggested this move a few months ago....its common sense. It will create a positive snowball effect on the economy.

So they knew the right thing all along but refused to do it because of greed.

Anyways it's a welcome development

Johnrake69:
Well, let's see how the bank complies with this.

This should have been done since. Some people in America now take advantage of this in pushing the rate so high. They buy up dollars from people that want to remit funds back to Nigeria. And push the rate up for people trying to send money to Asia.


Let the banks remove their hands from foreign exchange and focus on providing core banking services. They have created more problems by their profiteering drive on FX

The bolded is really affecting

ikorodureporta:


Source: https://nairametrics.com/2020/11/30/cbn-allows-diaspora-remittances-to-be-withdrawn-in-dollars/

This was their end game. They have cashed out . Who benefits immensely from the huge disparity in official and black market rates ? The people controlling the dollars we make as a nation . And who are these people ? The CBN and their cronies . Buhari is a lifeless , clueless man and everything goes in his administration .

Folks advise me, I have some dollars in cash, how best do I save it without losing value... It's a little above $1000.

Rugaria:
The ignorance on this thread is very suffocating..

Please educate us, let's hear your take on this directive... I have very little knowledge about foreign exchange.

I just want to point out that it is not a crime for anyone to acknowldege their ignorance in the subject matter due to lack of basics. I am a science student and I'm trying really hard to understand what is been said here but it's quite difficult as the economist here seems to have different opinions on the subject matter due to individual level of knowledge on the subject matter. Now would someone with a little bit of patience explain it all better in a lame man language.

Or betterstill,i will explain the way i understand it and would appreciate if someone would say if I'm correct or not, and explain better.

My understanding is that there would be no need for people who wants to send money to nigerians to first convert the money into naira?

The USD will be very much in circulation,thereby overcoming the issue of scarcity of USD in banks due to hoardement by those involve in black market exchange?

Due to this major circulation,there is the possibility of USD to naira exchange rate to decrease,which might inturn lead to the govt/cbn achieving their $1-#1?

Thanks.

Yes I get you but the IMTOs don't fly in the dollars or pounds to be credited into the beneficiary's account? The IMTOs will not do the cash out from your ba k accounts - the banks handles that.

How the banks are able to manage this depends on how much forex they can get from the CBN locally to knead off what they're able to transfer into the CBN's position from what they got from the IMTOs.

BTW the IMTOs currently sell their dollars to the banks and not the CBN

Studymore123:


The policy by CBN has nothing to do with banks but IMTOs. Banks are not licensed to be IMTOs but can be agents of IMTOs. It's not the bank that's generating the Fx. They are only agents to disburse the funds. Before everyone can collect USD from western union, the policy is only saying if someone sends you money via western union or other various channels, you can collect the cash in USD or have it sent to you dom account.
I only hope the IMTOs implement it soon

Ayo2004:

I was trying to get knowledge to eradicate my ignorance on this certain matter so I am in no way an oversabi...the part about the science student simply means I did not study anything related to the topic so it is not easy to completely understand even though I understand some parts as I studied science subject,then u went to bring on to bring examples of Bill Gates and English language which is completely irrelevant..even though many Nigerians use I am a science student,I am an arts student,I did not offer this in some ridiculous situations,I advise u try to understand genuine situations,If a person brings an accounting document and tell me to help with a balance sheet,I will tell him or her proudly that I can't help because I am not too knowledgeable in that aspect as science is my area of focus but I wouldn't mind learning...that's how I learn things I don't know

P.S;I don't think u know the answer so please don't quote me

I watch the forex market every day because I partly earn in forex, but wouldn't waste my little knowledge of it on you anyway.

Better late than never. I do not expect the naira to recover significantly though.