SeaTrade:
Not true,
You think it is easy to get fx from the bank?
What of those importing things in the CBN fx ban list?
Where do you think they will be getting forex from?
Nothing will happen to BDCs,price might drop but trading will continue.

There is no where in my post did I say BDC will be run out of business. But on the long run, most will run out of business. I've never have any problem getting dollars from my bank. So far I get evidence of wetin I wan use am do.

DubaiLandLord1:
You're wrong about this. On the long run, most of them will run out of business.

He is right actually, I don't know any person that lives abroad and changes currency at the bank whenever the are back home. Plus, these BDC guys are quicker and more professional than the banks where they act like they are doing you a favour.

Most of the time, the bank is only interested in holding your currency and investing with it.

Take Standard Chartered bank for example, where you pay in foreign currency but you can never withdraw it in Nigeria....except abroad. To withdraw, you must do so in Naira and that's where they play with their fees

Plus, people who deal in Euros and Pounds never use the bank. They hardly do.

divinehand2003:
BDCs are already well established businesses. Their networks will make it impossible to pull them down.

Whether CBN likes it or not, customers will prefer doing business with BDCs than going to join endless queues in Nigerian banks.

They are killing the economy, except those gaining from it

DubaiLandLord1:
There is no where in my post did I say BDC will be run out of business. But on the long run, most will run out of business. I've never have any problem getting dollars from my bank. So far I get evidence of wetin I wan use am do.

Because you are a small time player and maybe what you need isn't in the fx ban list.
There are people scattered in Onitsha,trade fair,Aba,PH that are huge importers whose weekly need of forex might surpass $3m.
These are the type of demands the bank cannot meet and this demand goes straight to the BDCs.
Speak about what you know,
And yes,you actually said they will run out of business which will never happen unless they are banned!
Just that they only lost the free money CBN was giving them weekly,end of discussion.

oluwaseyi0:
The customer they buy from is the bank

I dey buy for 410, another guy dey buy for 470, who you go sell to? That's why BDC will always have supplies. They create and sustain competition

lanocfoods:
The policy seems to have a positive effect, dollar is down to 400+ as against 500+ before the policy. Hope prices of goods and commodities will come down too. Kudos to emefile

your source? As of yesterday it was trading 509/$.

Ngasky:
Whoever needs Dollar should go through the legal and documented process.
We Nigerians are not ready to improve. Everybody knows the BDC's are wrong and dwstroying us but we are here defending them to perpertuate their illegality against us the same customers and citizens.
For now it will be business as usual because they still have dollars stashed. But with time it will be mopped up and it will no longer be business as usual

banks will sell to them. Watch!

Esseite:


The bank involvement would greatly impact on the general rates.. we still have those outside the book purposes today but we see the price crashing daily.. why?... because the supply is outweighing the demand on the BDC side.

For imports, people have bypassed the BDC's.. Nigerian organizations are now set up in various countries where you credit their naira account here and your payment is made abroad to the individual or organizations with a single transaction lien on transfer company account here in Nigeria until payment is received by your contact..

So how do these Nigerian companies "set up abroad" or in various countries, get rid of the stashed naira in their naira accounts? Are they an export business selling Nigerian products overseas? If these Nigerian companies abroad transact an avg of about $100k monthly, in exchange of N50M, my question is: how did they source the $100k and how do they get rid of this N50M now piled up in their account?

manny4life:


So how do these Nigerian companies "set up abroad" or in various countries, get rid of the stashed naira in their naira accounts? Are they an export business selling Nigerian products overseas? If these Nigerian companies abroad transact an avg of about $100k monthly, in exchange of N50M, my question is: how did they source the $100k and how do they get rid of this N50M now piled up in their account?

The sell the naira to Nigerians abroad aswell who need naira for purposes here while getting the dollar equivalent from them.. same route on both ends. How do you think the real estates funded by Nigerians abroad source naira?.. same process.

When fraudsters send wire funds, they credit Nigerian recipients through such funds having received the cash equivalent abroad.

UncleJudax:

banks will sell to them. Watch!

Yes but with more control as they have to provide evidence of needing the $ at every transaction.
Nobody banned $ but it should be done the right way
CBN and EFCC are going to monitor every single dollar transaction. We need to reduce corruption no matter how small it is

what is Niigeria main problem oo oga

Vetsolo:
Is BDC Nigeria main problem

The excuse CBN gave is stupid.

There is a laid down procedure for BDC's to report the utilisation of the forex they get from CBN weekly.

Almost all the BDC's don't do this and some that do cook up fake reports.

However, we have not been seeing CBN procecute those who goes against that provision as deterrent.

Forex has always been sold through Banks Teller point in that past until it was stopped some years back.

That period was when many Bankers made so much money round tripping the CBN dollars.
(I witnessed this first hand)

The truth is that both the BDC operators and the Bankers are Nigerians and the corrupt tendencies in us will make us circumvent any policies no matter how good.



Everyone wants to be a operator because it's a cheap and easy way to make cool cash. The masses are paying for it. BDCs were buying at N410 and selling at N505. Banks can never try this.

That means you don't follow or respect the law

UncleJudax:

banks will sell to them. Watch!

I believe you

Esseite:


The bank involvement would greatly impact on the general rates.. we still have those outside the book purposes today but we see the price crashing daily.. why?... because the supply is outweighing the demand on the BDC side.

For imports, people have bypassed the BDC's.. Nigerian organizations are now set up in various countries where you credit their naira account here and your payment is made abroad to the individual or organizations with a single transaction lien on transfer company account here in Nigeria until payment is received by your contact..

Where is the crashing rate o? Is it drop from 525 to 510 are referring to as crash? When it goes to 450,let me know.

WUdec:


He is right actually, I don't know any person that lives abroad and changes currency at the bank whenever the are back home. Plus, these BDC guys are quicker and more professional than the banks where they act like they are doing you a favour.

Most of the time, the bank is only interested in holding your currency and investing with it.

Take Standard Chartered bank for example, where you pay in foreign currency but you can never withdraw it in Nigeria....except abroad. To withdraw, you must do so in Naira and that's where they play with their fees

Plus, people who deal in Euros and Pounds never use the bank. They hardly do.

That story about Standard chartered is strange. I have a domm account there and they have always given me dollar cash when I go there to withdraw.

Ngasky:

Yes but with more control as they have to provide evidence of needing the $ at every transaction.
Nobody banned $ but it should be done the right way
CBN and EFCC are going to monitor every single dollar transaction. We need to reduce corruption no matter how small it is

CBN started monitoring and documenting who BDCs sell to long ago. Nigeria is a crazy place. Watch how a loophole opens up and the circle continues.

/
CBN banned the sale of US dollars to BDC operators. Did they ban the sale of euro, pounds Sterling and other major currencies too? If they run BDC operators out of business, where will people coming with foreign currencies into Nigeria exchange their money? Hate or love them, BDC operators make life easy for travellers. If they really want to prop up naira, they should focus on Nigerian economy and stop treating symptoms of bad economic policies.

/

frankmoney:
Lies..... You buy more dollars from your customers than CBN ?

Yea now....Nigerian economy is in the hand of people not govt.
There is more money in the hands of people than Govt!

DubaiLandLord1:
You're wrong about this. On the long run, most of them will run out of business.

The qay POS is getting bigger momentum so does BDC. There has been BDC for more than 40yrs in Nigeria. I know many Jigawa and Kano states people who stayed in Lagos for those afformentioned years doing BDC business!

frankmoney:
Lies..... You buy more dollars from your customers than CBN ?

Huge gains with CBN compared to the customers

Sorry oooo

As I write this dollar has dropped to N498/$1 naira. Make una dey deceive una sef

loswhite:
Lol see you when get ideas and yet you cannot understand a simple policy....smh.

See you wey you no get idea you can not understand simple English...
Coconut head

Homeboiy:
All these Abokis wey no de let person pass ring road in peace

Every time bros you wan change

Benin boy

UncleJudax:

CBN started monitoring and documenting who BDCs sell to long ago. Nigeria is a crazy place. Watch how a loophole opens up and the circle continues.

No. Before you can buy from the streets. But now it has to be in your personal bvn linked account as a customer. And you dont expect to order $5000 regularly it will be a red flag

ecolime:

Hope you know their so called networks won't sell to them at N410?... lol

By the way, CBN has no business selling dollars to BDC operators in the first place. Those guys were making a killing just by owing a BDC licence. All these at the expense of me and you.

Imagine getting 2m profit weekly doing nothing. That's blood money

Ngasky:

No. Before you can buy from the streets. But now it has to be in your personal bvn linked account as a customer. And you dont expect to order $5000 regularly it will be a red flag

CBN before this rule, only sold $20k a week to a single BDC...you really think this is how they make profit/money? This is Nigeria, to argue that there will be a loophole is just not conceivable.