Watch the price of everything go up.

To buy a car, you can't get forex from the CBN (it is not covered in their policies)
To purchase Electronics, Phones etc , you can't get forex from the CBN (it is not covered in their policies)
and
For small-time business people like us, first the CBN had reduced monthly spending limit to $100 (insignificant)
Until a citizen can walk into a bank and buy dollars even if it is a limited quantity to fund small business


I predict $1 will be sold at N780

tritt:

I agree with you.

Mitsurugi:

I'm not an economist but I believe the CBN will better regulate the banks. Though I don't see this policy lasting beyond two weeks

yemi1504:

What will exactly happen! APC and their anti-people policies!

Most Nigerians need just between $500 to $1000 for their businesses. But when they cannot access Forex through the Banks, where do you want them to go?
And we say we want to create Small and Medium Scale Businesses in Nigeria!
SMH

Arabaincubus:
The CBN is continuously attending an endless school for the wrong education. I find it difficult to describe this group of people.

Na mad pipu dey run CBN

id911:


Yes I agree. Banks who sell to BDC Operators would be in serious trouble with CBN. There's a process in place now for banks to show who and who they sell their Forex to. Things have changed. But this announcement won't last because Emefiele is going to be in serious pressure from powerful cabals and before long, he will reverse it.

The process is called round tripping, if you’re in the exchange business you already know what that means. They don’t import sh1t, but there’s paper work for FORM M to access USD. Bankers are part of the fraud

FARA4GA:

https://www.youtube.com/watch?v=6wlJpLG22K4

Correct..... My only fear is that banks have been known to be conniving with the BDC operators..... I've seen bankers tell customers there is no dollars in the branch.... Only for a BDC operator to mater come and collect tens of thousands of naira.... All because they will end up tipping the banker.

Nigeria problem isn't all about changing policy.... We need to change our mindset....

Look at the above video, it happened last week Saturday. .... Later the fools in the video will blame the government for bad governance.... When it's them that sold their future and ours into the hands of the criminal politician...

I Don tire for this country... I no go lie

banks are regulated. Staff would be in soup should he or she be found conniving with bdc

S

We'll know how many months it remain this thing before another new.

shadeyinka:
Watch the price of everything go up.

To buy a car, you can't get forex from the CBN (it is not covered in their policies)
To purchase Electronics, Phones etc , you can't get forex from the CBN (it is not covered in their policies)
and
For small-time business people like us, first the CBN had reduced monthly spending limit to $100 (insignificant)
Until a citizen can walk into a bank and buy dollars even if it is a limited quantity to fund small business


I predict $1 will be sold at N780







Most Nigerians need just between $500 to $1000 for their businesses. But when they cannot access Forex through the Banks, where do you want them to go?
And we say we want to create Small and Medium Scale Businesses in Nigeria!
SMH

The people importing phones at a cheap price due to the quantity need $500 to $1000 abi? SMH.
This policy is indefensible and there will be a policy somersault as usual. I hope when you want to buy an electronic which is likely imported, I hope you won't be wailing that it is at least40 per cent higher o.

paddyDIGITAL:

This is a clear case of throwing the baby out with the bathwater.

If it's the sort of baby that sets supermarkets on fire then good riddance.

Bankers have converted this scarcity to money making they will still come and say no dollar from cbn is only small allocation if you want you pay premium of 50-60 Naira per dollar as settlement to bank.
Everyone know this parallel system worst then bdc itself.
God help us.

slawormiir:
Damnnn niggarrrr
Isoright .......

This just reminds me....

I be dey reason say I go soon open dormicillary account o

Weed and bombing nor dey allow me remember ..

All my own na to just dey smoke weed, bang pussy, bomb and drink alcohol

Upon all the mouth u dey make since as street guy, so you nor get dormicillary account? How u cum take dey receive your dollar bills na?

shadeyinka:
Watch the price of everything go up.

To buy a car, you can't get forex from the CBN (it is not covered in their policies)
To purchase Electronics, Phones etc , you can't get forex from the CBN (it is not covered in their policies)
and
For small-time business people like us, first the CBN had reduced monthly spending limit to $100 (insignificant)
Until a citizen can walk into a bank and buy dollars even if it is a limited quantity to fund small business


I predict $1 will be sold at N780

Actually I think this will make the dollar fall a bit lower to the Naira. The current black market price is not so realistic. Good move by the CBN. It was a tough call though.

felucci:


Actually I think this will make the dollar fall a bit lower to the Naira. The current black market price is not so realistic. Good move by the CBN. It was a tough call though.

Why did the price of dollar go up even with the BDC?
It was because of the scarcity of dollars!

People need dollars that they cannot access from the banks, the only alternative was the BDC where they have to pay through their nose to get.

Now, the CBN has not banned the Business of BDC meaning that these could source their dollars from anywhere they can.
The banks through the back door will now sell to them at higher prices and of course, they will pass it to the consumers who still have no other choice apart from the BDC.

Thus, the price of dollar will increase top nothing less than $1 to N780.

The only way out is for FG to allow every Nigerian to walk into any bank and exchange their Naira for Dollars on the counter. Other than this, I'm sorry: the CBN has started a bigger round of inflation especially knowing that more than 80% of our importers do not get their forex from the banks.

yemi1504:


The people importing phones at a cheap price due to the quantity need $500 to $1000 abi? SMH.
This policy is indefensible and there will be a policy somersault as usual. I hope when you want to buy an electronic which is likely imported, I hope you won't be wailing that it is at least40 per cent higher o.

The CBN thinks that monetary policies are enough to repair the damage they and the minister of Finance have caused this Nation.

The only way inflation will not be as a result of this policy is if they scrap the dual exchange rate AND allow every Nigerian to access the forex from their banks.

We are almost 100% IMPORT dependent (this is our problem) and CBN's policy restricts the the availability of forex through the banks to the average businessman: what then do we expect as people MUST find alternative sources of the dollar at ALL COST.

The CBN cannot eat its cake and still have it!

CBN is leaving the disease and treating the symptoms. Nigeria is the only country in the world where BDCs are supplied Forex by government. That move alone encourages corruption. In Ghana the difference between the parallel and Official rate is not more than 4 cedi but in Nigeria the difference is almost 100 Naira.
Why won't the rates not jump when the BDCs get easy supply of dollars and in turn they arbitrage the funds thereby causing scarcity which in turn hikes the exchange rates. Now with this new policy this would lead to FX rackets in Banks, which would even make the scarcity worse and make the exchange rate spike higher. There is so much greed in the system starting from CBN where most of the directors are indirectly owners of BDCs, not to talk of Banks as well. tell when you last visited a Bureau de Change office in Nigeria? It is the roadside Aboki hawkers that change FX for you and guess where they get it from? BDC operators and these guys don't supply or rarely supply the public with FX in line with CBN directives and because CBN is also compromised they cannot monitor them at all.

phadriz:
This same policy was implemented in Jan 2016 and was reversed in Sept 2016 because dollar rate in the parallel market skyrocketed, also the pressure from the BDC owners overwhelmed the man because major owners of BDCs are who is who in the country and ex CBN directors.

The BDCs operators are necessary evil because they Finance the independent importers which are not covered for Forex purchase which is also an infraction to Bureau de change guideline. The operators run the sector with impunity such as selling above approved threshold to fund unapproved transactions with fake documents for returns and CBN are aware of this but I think their hands are tight as well.

Our Forex problem is too complex which can never be solved with a single policy.

Honestly, CBN is indeed into voodoo economics; applying a magic wand at any problem, hoping for the “ waaa laaa” moment.

Most of the importers/traders at Orile, Alaba, Ladipo, Balogun access USD from the street BDC to cover import costs.

The banks have made Form Q difficult and the waiting time now is over 90 days and counting. One is never sure when the bank will debit Naira account and credit overseas supplier with USD. This makes the whole form Q route very inconvenient for importers.

Providing Exchange control documents ( customs documents including PAAR & Form M) covering every usd purchased through the bank is also not making this route easy for traders. Some result to using newly registered to access usd via form Q. Banks are aware of this, so form Q access made more stringent.

My Question;

Why can I take my Naira or Naira in my account to the cashier and ask my bank to send dollar to oversea body without much protocol? And expecting the cashier to do it immediately and give me a print out. Just the way it’s done in other countries.

I support this new move by the CBN as long as the banks dont abuse it or make it hard to issue fx to legitimate users. The main question however is on what the requirements are to be considered a legitimate fx user before banks can give out forex.

shadeyinka:

Why did the price of dollar go up even with the BDC?
It was because of the scarcity of dollars!

People need dollars that they cannot access from the banks, the only alternative was the BDC where they have to pay through their nose to get.

Now, the CBN has not banned the Business of BDC meaning that these could source their dollars from anywhere they can.
The banks through the back door will now sell to them at higher prices and of course, they will pass it to the consumers who still have no other choice apart from the BDC.

Thus, the price of dollar will increase top nothing less than $1 to N780.

The only way out is for FG to allow every Nigerian to walk into any bank and exchange their Naira for Dollars on the counter. Other than this, I'm sorry: the CBN has started a bigger round of inflation especially knowing that more than 80% of our importers do not get their forex from the banks.

Would be it nice to just walk into bank and buy USD at the counter? Even if not physical dollar, maybe some kinda e-dollar in Visa card for travelers or paid into a dormicilliary account for remittance.

This may take the pressure off and halt arbitrage.

It is a welcome idea however, the consequence will lead to unemployment

Dollar go drop further

Too much trial and error policies

Banks will now be the new BDC

Other countries have BDC not only in Nigeria.. When Nigeria was still manageable you could put your ATM card and withdraw dollars in a dollar dispensing Atm machine in another country then go to the nearest BDC to the hotel you are and change to the local currency of the county.

Simplythebest:
Thats what they should have done since. Is only this country u have people selling foreign currency on the street without any accurate records.

blaise26abj:


Emiefele is a thief . During Jonathan , there was little profit margin on dollars for BDCs. Everything was sane .
Because Nigeria has an import based economy ,they made good money even with 2-5 naira profit margin .
But that idiot decided to run a 2 fx rate regime by fixing government rates and starving Nigerians from accessing dollars thereby creating a high demand that is majorly serviced by black market /BDCs .

They are doing this to make dollar hit 650 naira in the black market and they will over-cash out . 2023 in mind . Then they will revert back . Because BDCs are majorly an Hausa/Fulani monopoly from way back . This ban can’t last. Quote me if they don’t reverse this policy in 3-4 months MAX

But the usd went from 170 to 230 under GEJ.

I remember buying usd for 70 at one certain time.

The truth is none of these guys know what to do to solve Nigeria's problem. Each administration takes things from bad to worse. Always

Cc: DryMouth

Yes your very right. Few months ago I wanted to buy some chemicals but the form M which is the official way to get official dollar rate was grayed out on the common trade terminal and also it was not available in the bank. As if that was not enough I went to black market and still could not transfer the money despite having invoice and all required documents; they said new Cbn policy that says you can only transfer dollar that was transferred to you from outside the country. something like " outside come outside go and inside deposit inside spend" . Finally my friend in a bank helped me transfer two payments out of three, next thing CBN query, that the dollar he transferred did not come from outside the country and as such the bank was sanctioned with a fine of N200million. My friend was summoned to a disciplinary committee and suspended ooo without pay. So every dollar request is scrutinised by this CBN leadership. My fear is not the policy but the fact that few monopolistic business men will start requesting for dollars under the guise of machine repairs, software upgrade etc and buy up whatever forex is available thereby becoming another BDC or monopoly of forex dealers M

lionshare:
Its difficult for the banks to run rackets with this because they have to publish individual/corporate buyers of forex. Also, any bank found doing any racket CBN will likely sanction them and No bank's board wants to be in CBN bad book right now.

FARA4GA:

https://www.youtube.com/watch?v=6wlJpLG22K4

Correct..... My only fear is that banks have been known to be conniving with the BDC operators..... I've seen bankers tell customers there is no dollars in the branch.... Only for a BDC operator to mater come and collect tens of thousands of naira.... All because they will end up tipping the banker.

Nigeria problem isn't all about changing policy.... We need to change our mindset....

Look at the above video, it happened last week Saturday. .... Later the fools in the video will blame the government for bad governance.... When it's them that sold their future and ours into the hands of the criminal politician...

I Don tire for this country... I no go lie

You're right. It's terrible. It is a cyclic and systemic. Bad followers and bad government also. For the video, bad person in the video orchestrating bad acts but since the video leaked what step has the government taken?

The cabal go soon sack this one if he doesn’t reverse this nonsense sharp sharp

Which country u see people selling USD, Euro and pounds on the street? Countries i have visited before u can change dollars u have to make use of ur ID card or passport and is well documented. I never see people selling dollars on the street and how u withdrawing dollars when u can easily withdraw the local currency of the country u are in.

skj1377:
Other countries have BDC not only in Nigeria.. When Nigeria was still manageable you could put your ATM card and withdraw dollars in a dollar dispensing Atm machine in another country then go to the nearest BDC to the hotel you are and change to the local currency of the county.

This useless guy.

How can you be selling dollars to malu for 198 and selling at 480 for others.

Aboki without work go the buy Benz.

Useless country.

Emefiele should stop accusing the BDC's. You can't blame an undertaker for burying a corpse. You'd have more chance of finding your missing purse filled with cash at Oshodi than for the BDC's not to enrich themselves from an incomprehensible forex exchange policy.

Ever since Buhari assumed office, he has forced the Central Bank to adopt exchange rates that border on fiction. He prefers a strong and very unaffordable Naira policy which is totally devoid of market realities. That is the foundation of PMB's economic policy and the primary reason the economy is doing badly.

How can the official rate be 410 and the parallel market rate be 500 and not expect the BDC's to engage in sharp practices? You expect them to buy at 410 and sell at 412? Sanusi said any spread that is more than 3% between the official and parallel market rate will lead to round tripping, exactly what the BDC's are doing.! They buy at the official rate and sell at the parallel rate. Sanusi and Soludo did their best to keep it within the 3% band.

Under Buhari, at a time, the official rate was 197 and the black market around 310. That's what I can remember. That is a gap of more than 60% ! Why won 't they roundtrip?

Do you think the banks won't round trip? Don't count on it. All I can say is "they'll be laughing all the way to the bank.