Very correct

FalseProphet1:
I see that more than 70% of people reading this post have no idea what it means. This I have seen.

Me I no kuma understand the story. mummyfour biko come and explain to me o

studentofTruth:
No wonder UBA sent me a message this morning that they want to give me #2 per $ received. So, it's actually #5 per $, and they want to corner #3. Nawaa, these banks will never stop to amaze me.

@CBN and Emefieli, continue your business. Very soon, it will be game over!

One of the benefits of social media, including Nairaland.

Just for posting this here, UBA has sent another message with the right amount @#5 per $

studentofTruth:


I agree with you. If truly the banks are doing the giveaway at #5 per $, with $20,000, someone is in a profitable to-and-fro business.

International transfers cost about $30 per transfer, so to and fro is $60 — let's say $70 (assuming any other charges). Every inflow of $20,000 gives you #100k from CBN, while your expenses is only $70 (#30-35k). You're in #65k profit per full trip!

Invariably, these dumb fellows, through this dumb policy, have created another means for their folks to milk the country more!


Even $10k can give you more than #30k per full trip.

Smart man. They have created a successful strategy for some bankers to round trip. Only people with "access" can be involved in this and CBN is essentially given them a loophole to do this. Probably this may already be going on given our dual exchange rates. But hustlers like me wont drop one dollar because additional 5 naira. Naira that before you open and close your eyes again the 5 naira has become 2 Naira. What if after May CBN devalues the naira again which is consistent in their ways. Then the additional 5 naira you made on your dollar will be how much?

[quote author=jibbish post=99661193
][/quote]

Changing the naira at high dollar rate will ultimately mean spending more to buy the imported goods, and that will be taken out on the final consumers in increased prices. Cement price has gone up already gone up, even though dangote supposedly makes it there. No emerging economy strives by importation, rather it's the other way round.

When they started this receive dollar thing ...I knew it was all sham ....first the banks started rounding up the dollars to be paid out with the excuse that they don't have smaller denomination meaning if they sent to you $1010 you can only receive $1000 you forfeit the $10 except you can cancel and get your benefactor to resend. Next it was the issue of some bank branches not having dollars and trying to frustrate the beneficiary, they also tried forcefully converting the dollars without the customers' permission and pay out in Naira. All of these did not increase the inflow now, it is payment of bounty on the dollar to encourage inflow

GamalNasser:


Source: https://nairametrics.com/2021/03/06/breaking-cbn-introduces-naira-4-dollar-scheme-for-diaspora-remittances/

thebosstrevor1:


Corporate account for what exactly

There is money laundering laws...even the elites dont use physical cash to milk the country.

Most people that understand this policy are happy with it

Corporate account means business account! You can attach any business you want to it.

bigtt76:
When they started this receive dollar thing ...I knew it was all sham ....first the banks started rounding up the dollars to be paid out with the excuse that they don't have smaller denomination meaning if they sent to you $1010 you can only receive $1000 you forfeit the $10 except you can cancel and get your benefactor to resend. Next it was the issue of some bank branches not having dollars and trying to frustrate the beneficiary, they also tried forcefully converting the dollars without the customers' permission and pay out in Naira. All of these did not increase the inflow now, it is payment of bounty on the dollar to encourage inflow

What you wrote is not true.

Banks do pay customers the correct money sent.

If someone send 110, they pay you your complete money and dont round up.

If they take out of your money, it is fraud, they know that.

No bank in Nigeria, since the policy started have ever forced any customer to convert to naira, it is up to you to convert to naira, there could be issues of no dollars in a particular branch, you can go to another bank.

I don't know where you are getting your information from

studentofTruth:


Corporate account means business account! You can attach any business you want to it.

Not true....business account limit is 100k and you can be arrested for money laundering.

Most businesses commit crime through round tripping.

thebosstrevor1:


You are right in a way but not every one receives money from abroad, the reality is very few people receive dollars in Nigeria, the bulk of dollars entering this countryis from fdi...so i don't see us getting hyper inflation

If remittances are not significant, the Cbn would not come up with this policy or 'promo'.

CooKeed:


If remittances are not significant, the Cbn would not come up with this policy or 'promo'.

Fdi is also counted as remittance

einsteine:


That's if you are doing small amounts. The charges on a million dollars will not be anywhere close to 5 million Naira which is what the CBN will be giving.

You want to receive 1m dollars though western union?

thebosstrevor1:


Not true....business account limit is 100k and you can be arrested for money laundering.

Most businesses commit crime through round tripping.

It has nothing to do with me. I'm telling you what those elites do. This policy has created another business for their folks.

Money laundering issues arise when a business is going beyond $100k per day. @$99k per day, those guys can be making over #300k per day free money. Rubbing tax payers to pay their folks.

thebosstrevor1:


Fdi also counted as remittance

No. Remittances do not include FDI.

Secondly, this 'promo' is for people who receive fcy through IMTOs. Can you send FDI through western union? Again, no.

studentofTruth:


It has nothing to do with me. I'm telling you what those elites do. This policy has created another business for their folks.

Money laundering issues arise when a business is going beyond $100k per day. @$99k per day, those guys can be making over #300k free money. Rubbing tax payers to pay their folks.

I believe you live with them to know their strategy

bigtt76:
When they started this receive dollar thing ...I knew it was all sham ....first the banks started rounding up the dollars to be paid out with the excuse that they don't have smaller denomination meaning if they sent to you $1010 you can only receive $1000 you forfeit the $10 except you can cancel and get your benefactor to resend. Next it was the issue of some bank branches not having dollars and trying to frustrate the beneficiary, they also tried forcefully converting the dollars without the customers' permission and pay out in Naira. All of these did not increase the inflow now, it is payment of bounty on the dollar to encourage inflow

Hahaha I like how U describe it " bounty on the dollar "

thebosstrevor1:


I believe you live with them to know their strategy

Tell me about the round tripping with assets you were talking about since you do it with them.

studentofTruth:


You understand the game. Seems that they don't have enough to supply the vendors; sensing USD scarcity in the parallel market, they want to entice the citizens to flood the market with dollars.

Temporary fix. Their game will be up soon. They're already out of options, which is why they are doing so many crazy things of recent.

The scam going on in that parallel market is worse than all the fuel subsidy scam put together since the 3rd republic! They're literarily subsidizing foreign exchange for some people (by as much as #100 per $) at the expense of the entire economy!

Thank you.

studentofTruth:
No wonder UBA sent me a message this morning that they want to give me #2 per $ received. So, it's actually #5 per $, and they want to corner #3. Nawaa, these banks will never stop to amaze me.

@CBN and Emefieli, continue your business. Very soon, it will be game over!

U see the corruption I was speaking about has already started

GamalNasser:



Hahaha I like how U describe it " bounty on the dollar "

Or ransome on dollar!

nedekid:


"And the truth is oil prices are too low for Nigeria to earn sufficient dollars"

When oil fell to less than $10 due to corona and glut, the said we did not have enough usd earnings and so naira devalued.
Crude oil has rocketed to $65 and climbing, should the naira not strengthen and appreciate in value? Instead we still hear complaints of not having enough earning even at $65.
Something tells me that if crude oil becomes $1k per barrel, naira will still depreciate and these recessionists we have as a government will still find excuses.

Not to excuse government...but here is the issue.

There is something called a breakeven oil price...and for Nigeria it is $133 per barrel...which is the price that we need oil to run a balanced budget. It was $139 three years ago, and $122 in 2012.

Why is it that high? Well, we produce the same amount of oil as the UAE. The UAE has less than 15 million people, we have about 211 million...so we need a higher price of oil to have better revenue

Again, when oil prices fall, we need to take loans to keep our heads above water. Since 2014, oil has been falling. GEJ as a result took loans, and Bubu took loans when he came on board. As a result....when the oil price rises, we have to pay those loans first....so no impact yet...AND we still have to take loans since $65 is not up to our breakeven price.

There is a reason why I don't like APC or PDP...and it is because all of them behave as if oil is our only earner. No plan to diversify, and they also refuse to remove subsides on fuel and power...which would attract more investment and dollars, and give us a stronger naira (with the only side effect being high prices for power and petrol).

This quote from this article puts it well..and the scary thing was that it was published in 2004

Corden and Neary (1982) have demonstrated how Dutch disease occurs in an economy. According to them, in a country experiencing "boom" in the export of a commodity, the economy can be divided into three sectors: the "booming" export sector, the "lagging' traditional export sector and the non-export sector. The Dutch disease occurs when the traditional export (tradable goods) sector is crowded out by the booming export sector and the non-tradable goods sector. The lagging traditional tradable goods sector may include cocoa, palm produce, cotton, rubber, coal, copper, textiles and some manufactured goods while the booming export sector may be crude oil, coffee, gold, etc.

The non-tradable (non-export) goods sector covers all those goods that are produced for domestic consumption only, e.g. staple food items, clothing, building materials, locally-assembled cars. Where crude oil (and gas) is the booming export sector, the non-oil export sector may be crowded out by the oil sector and the non-tradable goods sector of the economy.

This can happen when the oil revenue windfall increases domestic demand for non-tradable goods and pushes up domestic prices leading to an appreciation of the real exchange rate which in turn reduces the competitiveness of the non-oil export sector. This will in turn lead to a reduction in non-oil exports in both quantum and value terms. The oil windfall may also lead to movement of the factors of production in the economy. For instance, capital and labor (and land) may shift from the non-oil export sector to the oil sector (in order to maintain or increase reserves and production) and the non-tradable goods sector (to take advantage of the growing domestic demand). This explains why the increase in oil prices and the subsequent oil revenue windfall in many oil-exporting countries have tended to depress their non-oil export sector while at the same time generating a boom in both the oil and the non-tradable goods sectors.

[b]With capital and labor shifting from the non-oil export sector to the oil-sector and non-traded goods sector, firms in the non-oil export sector are forced to either close down or reduce their scale of operation. The boom in the oil and non-traded goods sector increases the demand for imported goods. This may not be a problem in the short-term so long as the country has enough foreign exchange to pay for the imports. The depression in the non-oil export sector and the boom in the other two sectors have medium to long term implications for the economy because the oil windfall will not be permanent given the volatility, unpredictability and exhaustibility of crude oil. [b]For instance, if there is a decline in oil prices and oil revenue, the lagging and collapsing non-oil export sector will not be able to compensate for the drop in oil revenue while domestic demand for the non-traded goods and imports remain sticky. Consequently, the country will be forced to borrow from the international financial market to compensate for the decline in oil revenue. Over time, external debts will increase and so will the debt service obligations.

Even when oil prices go up later and there is another round of oil windfall, it is difficult to correct the earlier damage or distortions created by the initial or previous oil windfall[/b]. In some cases, the oil exporting country may be forced to adopt some form of structural adjustment program (SAP) to correct such distortions or imbalances[/b]. Some of these SAPs are painful and may increase the prevalence, depth and severity of poverty

SAUCE

FalseProphet1:
I see that more than 70% of people reading this post have no idea what it means. This I have seen.

Please explain better so i know what it means

seunayantokun:


Or ransome on dollar!

Lol

A305:
If I understand this news correctly. It means CBN intends to outbid ABOKI and the banks for your dollar in order to amass the dollar, devalue it locally and make it available to other sectors at their rate. Then make the dollars in circulation exessive that, it would crash the black market rate if they keep up with the promo.

The promo would serve as a tool to check mate dollar scarcity and overflow.

Nice move CBN. Who ever came up with this is a thinking man.

your own thinking and analysis is totally different, as others are mainly opposed to it you seem to see a clearer picture that not even myself understand

studentofTruth:


Tell me about the round tripping with assets you were talking about since you do it with them.

There are 2 ways. But we are going to focus on the forex roundtripping

You buy dollars at cbn rate and sell it in the black market.

For instance, it is easy for your elites to get 10 million dollars at official rate (380) and sell at N480 at the black market and make a profit of over N1bn and if they do that four times in a year, for doing nothing they would earned N4bn.

Princedapace:


Oh boy, u love Nigeria o. Bandits just went to a FG staff quarters to kidnap family members of staff of the Aviation ministry. Soldiers engaged them but the bandits still escaped.

Mehn, how some of u love Nigeria like this beats my imagination. Even ur leaders, ur politicians dont believe in Nigeria o. Their families are secured abroad, they use abroad hospitals, send their kids abroad for education, some keep their kids there. This only means that they dont believe in Nigeria o.

How do some of u who are broke who cant afford to keep their families abroad or run away when there is problem defend the same country whose leaders dont believe in beats my imagination. That is madness o. What the bandits did shows that they can go into any community, govt establishments, houses, etc to kidnap citizens o.

The same bandits that are being sponsored by politicians abi?

Nbotee:
For those who do not understand the post, CBN wants to b paying Nigerians 5 naira for every 1 dollar they receive but the 419 behind it all is the useless exchange rates dey dey maintain.. In other words dey want to bribe Nigerians 5 naira for collecting their dollars at their 419 rate

On the contrary, I think it's just an incentive to encourage inflow of the dollar. Remember you now received dollars rather than it being converted to NGN. So there's no question of use of a 'fraudulent' rate.

My only challenge is the short timeframe for implementation. Otherwise, I don't see anything wrong with it. Our FDI has plummeted lately, so anything to encourage foreign inflows is almost welcomed now.

See attached from WorldRemit

thebosstrevor1:


What you wrote is not true.

Banks do pay customers the correct money sent.

If someone send 110, they pay you your complete money and dont round up.

If they take out of your money, it is fraud, they know that.

No bank in Nigeria, since the policy started have ever forced any customer to convert to naira, it is up to you to convert to naira, there could be issues of no dollars in a particular branch, you can go to another bank.

I don't know where you are getting your information from

bigtt76:
See attached from WorldRemit

But it is different from reality.

Also this is like a precaution...at the end they wrote, you can use another pick up branch if their is unavailability of smaller notes.

My brothers and sisters in the diaspora please do not send money to Nigeria for now, do not consent with the failed country.

thebosstrevor1:


There are 2 ways. But we are going to focus on the forex roundtripping

You buy dollars at cbn rate and sell it in the black market.

For instance, it is easy for your elites to get 10 million dollars at official rate (380) and sell at N480 at the black market and make a profit of over N1bn and if they do that four times in a year, for doing nothing they would earned N4bn.

Everyone knows that game (items for forex and items banned for forex). It's what kept the naira in this sorry state. I want to know the one you talked about initially with some forms of tangible assets.