TimeSpaceWizard:



Any bank or Nigeria banks. I have to repeat this again and again. I said all your complexity of FX is due to the falsely manufactured FX operations by the CBN.

You do not need to have dorm accts in any other countries to import stuff.

Take away the dorms and parallel FX system and the default system is easier using corresponding banks to handle trades

You dont need dorm accounts in other countries because their currencies are tradable.. You can wire USD, EURO, GBP, JPY to any person abroad and it will be accepted.. Goodluck wiring Naira to anywhere even Chad..

CooKeed:


And how do you Nigerian banks settle the correspondent banks? In Naira?

With respect, I don't think you fully understand how these things work.

That guy is probably a student, flexing his basic economic knowledge because nobody who understands/trades in the day to day Nigeria, will make such spurious posits...I mean, look at this take here loool:

TimeSpaceWizard:



Any bank or Nigeria banks. I have to repeat this again and again. I said all your complexity of FX is due to the falsely manufactured FX operations by the CBN.

You do not need to have dorm accts in any other countries to import stuff.

Take away the dorms and parallel FX system and the default system is easier using corresponding banks to handle trades

Solatium:



There something call balance of trade,your NNPC pay for whatever forex spendings from their account that domicile in JP Morgan, Chase and the rest of them,they do not need to move physical dollar's for payment.
Bro get proper education on this things, this singular argument has just point me where and how you get your mind set

With due respect, you're beginning to embarrass yourself. I don't think you know enough about this topic. Please.

philip0906:

Lmao! You keep giving yourself away as someone who doesn't know jack.

I have Naira and want to settle for goods in China, quoted in USD. Who will collect my naira in exchange for the USD? What rate will the person/business who collects that naira, use? The CBN rate that will mean he'll loose the value of that naira?


You're most likely a high school student with your elementary takes.

You are not crazy, you are silly.

The parallel FX system in Nigeria has birthed too many complexities and all you do is restore the default system as all other countries do.

Do you need to buy dollars and put in your dorm acct before exporting, Only in Nigeria. But that's total bullshit.

When you close all dorm accts and allow naira to be converted at CBN rates via different trade instruments it will be exactly how other countries trade.

For now, you must continue to lament.

Solatium:



There something call balance of trade,your NNPC pay for whatever forex spendings from their account that domicile in JP Morgan, Chase and the rest of them,they do not need to move physical dollar's for payment.
Bro get proper education on this things, this singular argument has just point me where and how you get your mind set

The dollars Nigeria will have in JP MORGAN, etc are proceeds from CRUDE OIL SALES.. They don't get dollars from thin air.. So dollars less in JP Morgan means less dollars available for the rest of the industries in the country.

TimeSpaceWizard:


You are not crazy, you are silly.

The parallel FX system in Nigeria has birthed too many complexities and all you do is restore the default system as all other countries do.

Do you need to buy dollars and put in your dorm accy before exporting, Only in Nigeria. But that's total bullshit.

When you close all dorm accts and allow naira to be converted at CBN rates via different trade instruments it will be exactly how other countries trade.

For now, you must continue to lament.

Our currency is garbage and not accepted internationally. Other countries have world currencies.. You cant go to any country in the world and try to spend your Naira, but you can sure go to pretty much EVERY COUNTRY in the world with your USD, EURO, YEN, POUNDS, etc..

thats why those countries dont need dorm accounts. They can directly settle the supplier with their currency, or get the required currency easily as there are millions of people who trade and need euro,usd, daily.

2fast4u:



The dollars Nigeria will have in JP MORGAN, etc are proceeds from CRUDE OIL SALES.. They don't get dollars from thin air.. So dollars less in JP Morgan means less dollars available for the rest of the industries in the country.

Yes,but your monthly dollar requirements don't just go up from $5m to $200 with an increase of over 1000% every month.
Nigerians are crooks,they buy dollar's and keep,if they read that the rate drop from ₦550 to just ₦500 today you will see them dumping the ones in their hands for minimal profit

CooKeed:


With due respect, you're beginning to embarrass yourself. I don't think you know enough about this topic. Please.

kindly educate us if you have a better opinion,do not forget to tag me to such contribution.thank you

Solatium:





Yes,but your monthly dollar requirements don't just go up from $5m to $200 with an increase of over 1000% every month.
Nigerians are crooks,they buy dollar's and keep,if they read that the rate drop from ₦550 to just ₦500 today you will see them dumping the ones in their hands for minimal profit

I agree there is a lot of speculation, but thats not the reason why dollar is high.. Why was dollar 160 for MANY YEARS? why was it 350 for many years?

For sure i agree that some of the dollar demand are for crooks who will turn around and sell it back for profit.. But the truth is that there just isnt enough dollar... If there was the rate would be low and stable, eliminating possibility of round tripping..

2fast4u:


You dont need dorm accounts in other countries because their currencies are tradable.. You can wire USD, EURO, GBP, JPY to any person abroad and it will be accepted.. Goodluck wiring Naira to anywhere even Chad..

That's just an excuse. You can not strengthen Naira by continuing stake it against reserve currency. Eliminate the form accts and work your corresponding banks.

The challenge facing Nigeria import is having to buy dollar and having to buy imported goods. Eliminate dorm accts and convert all FX to local currency and the economy will reset.

Is it the country we pledge for or they manipulate it����

Buckeyemedia1:
What does your country export for foreign exchange other than crude oil, what does your state do to generate forex, what do you do to make money in dollars? It is President Buhari that should provide dollars for you? Na America you dey? Lazy People.

Astute questions.

jjman2322:


Truth is CBN doesnt have enough dollars to give as the BULK of dollars are given to PETROL importers to make sure price of FUEL doesn't rise.. If we werent importing fuel dollar would be 150 NAIRA..

When are we going to stop importing fuel? Will Dangotes refinery solve the issue?

TimeSpaceWizard:


You are not crazy, you are silly.

The parallel FX system in Nigeria has birthed too many complexities and all you do is restore the default system as all other countries do.

Do you need to buy dollars and put in your dorm accy before exporting, Only in Nigeria. But that's total bullshit.

When you close all dorm accts and allow naira to be converted at CBN rates via different trade instruments it will be exactly how other countries trade.

For now, you must continue to lament.

Lmao! What are you saying? You don't even have any idea of how importers and maufacturers pay for their goods/services.

This guy, did a great job at detailing out how it works but you're hell bent on taking yourself on a ride of folly:

jjman2322:



This is why a good business school is needed in Nigeria.. People dont understand Economics 101

First of all, CBN official rate is like 410, so converting any FX inflow to naira means you will get it at 410... Now let me ask you, your uncle in USA has $10,000 for you. Will you tell him to wire the $10,000 to nigeria for N4,100,000, or will you find a third party who needs to pay his supplier in China,India, and sell it to him for 550 (N5,500,000) ? This is whats basically happening.

As someone in the manufacturing, let me try and explain whats going on. There is severe shortage of USD. Lets assume you need raw materials worth $500,000 for the month, you may be lucky to get $5,000 in a month from your bank/cbn (through LC OR BILL FOR COLLECTION), so you now have to go to blackmarket for the rest.

Abokifx just publishes prevailing rate.. Abokifx is irrelevant when it comes to demand and supply.. Im too tired to explain more, but the solution is simple.. CBN needs to provide more USD to the big companies who need it, and the black market price (REAL DOLLAR PRICE) will drop..

The reason why goods are going up in prices (TV, PHONE, AC, FOOD, etc), even though officially dollar is 410, is because NOBODY IS GETTING 410, or even when they do its minimal.. Yes you can get PTA (Travel allowance) from your bank, but thats only like $4000.

The real problem is when as a manufacturer you need $1m.. Good luck getting that in 10 years....

There is real demand for USD from local companies here for at least $500M a day, and CBN is barely giving 10% of that.. See the problem

How much do you think NESTLE spends daily on USD, or Nigerian breweries... Quick example, indomie is made with tapioca starch, Potasium & sodium carbonate, sodium tripolyphosphate, riboflavin which are imported.. They must probably use $millions weekly just for import... So they go to black market = price jump in finished product... Hope i made some sense..

2fast4u:


I agree there is a lot of speculation, but thats not the reason why dollar is high.. Why was dollar 160 for MANY YEARS? why was it 350 for many years?

For sure i agree that some of the dollar demand are for crooks who will turn around and sell it back for profit.. But the truth is that there just isnt enough dollar... If there was the rate would be low and stable, eliminating possibility of round tripping..

You can't have enough dollar,even if our local currency is denominated in dollar's you can't.
we all know what the problem is but everyone keep running away from it.
My Question is why do you have to you have to touch physical dollar's when you can get things done electronically with real Prof of need?
Le t me tell you what we do in this country,if i want travel abroad now,i will go to the bank and demand $4k as my PTA i will get it out successfully then sell $3k to Aboki at ₦540 keep the remaining $1k for my travel needs.
without lifting afinger i just made a profit of over ₦300k

2fast4u:


Our currency is garbage and not accepted internationally. Other countries have world currencies.. You cant go to any country in the world and try to spend your Naira, but you can sure go to pretty much EVERY COUNTRY in the world with your USD, EURO, YEN, POUNDS, etc..

thats why those countries dont need dorm accounts. They can directly settle the supplier with their currency, or get the required currency easily as there are millions of people who trade and need euro,usd, daily.

Now you are beginning to decloud yourself from the Nigeria's importer mentality. The system has become too complex because of artificial manipulations caused by a parallel FX system that is not found in other countries and you expect me to understand it.

I better not understand Nigeria system of exim because it will mess my brain up. This is not how importaton works in other places.

Someone mentioned that I am not an importer snd another says I am using secondary school economics and I questioned myself.

Companies like American Express are third party companies that you book currencies and are converter snd remitted to suppliers directly and your goods are shipped.. Most times you do not need banks and my real estate company in US is what I use to send money to China and shop products here.

I better not understand this silly system.

TimeSpaceWizard:


Except you are into advance fee fraud, asking for all fx to be converted to naira and all dorm acct shut down as well as closure of all bdc shouldn't bother you.

Granted that Nigeria is not a net exporter of products which will organically strengthen the currency and you can't actuate export immediately but you can do something and that is what the immediate solution is.

I do not really care about about these yahoo yahoo ventures that much to hate you as long as your hustle does not affect mine, but be reasonable in your comment otherwise I will ask you how long you have been stupid, though I will keep that question aside for now until you respond again with bitterness.

That's when I will attempt to ask you how long you have been stupid

I’m a retiree that gets pension in dollars. Closing my dollar account and forcing it into naira will hurt me. When I travel I’ll now have to source dollars to spend?

Let’s not throw the baby out with the bath water.

TimeSpaceWizard:


That's just an excuse. You can not strengthen Naira by continuing stake it against reserve currency. Eliminate the form accts and work your corresponding banks.

The challenge facing Nigeria import is having to buy dollar and having to buy imported goods. Eliminate dorm accts and convert all FX to local currency and the economy will reset.

You dont understand.. Let me give a simple example.. Imagine if you were the only man left in your state? All the girls would be lining up to beg you to sleep with you....

Now imagine if there's only one girl left in your state? all the guys would be begging her to sleep with her..

I just broke down simple demand and supply..

Our currency is not in demand because no country trusts it. Naira has not been tradable in the world market for decades and I doubt it will be anytime soon.. Its too unstable of a currency.. Let me ask you a simple question, be honest..

You just won the lottery in USA... They can either deposit your $100M winnings in a USD account in america, that you can come whenever to access, or they can convert it to naira and deposit the naira in Nigeria.. (Note $100m will last you many generations)..

Guess what? 99.99% of people would pick the USA option? Why? Because in 10 years their USD is still roughly the same value minus a little inflation, but in 10 years their naira may not buy toilet paper..

Do you know that back in the late 90's, early 2000s In nigeria (just 20-25 years ago), if you had 10.000 naira, you could buy food for your entire family of 4 for the month? ask your parents... Now 10,000 is junk.. You cant say the same for people that have USD ..

philip0906:

Lmao! What are you saying? You don't even have any idea of how importers and maufacturers pay for their goods/services.

This guy, did a great job at detailing out how it works but you're hell bent on taking yourself on a ride of folly:

Use the word, Nigeria suffer head importers. I basically do not need to move funds from Nigeria to bring things here. It gives me headache. It is a fake system.

henryobinna:
You must think everyone is as stupid as yourself and that is why you just like your illiterate in chief assumes everyone who earns USD or asks for the rate is into fraud. How dumb can an individual be?

Maybe I shouldn't have engaged a low life that should have been living in the caves, in the first place. Don't worry, even the FG that sell crude oil is into advance fee fraud. Don't you think so? Dummy

How much for the GoPro?

TimeSpaceWizard:


Use the word, Nigeria suffer head importers. I basically do not need to move funds from Nigeria to bring things here. It gives me headache. It is a fake system.

its not a fake system. Many countries with NONE TRADABLE CURRENCIES have the same issue.. Zimbabwe, Zambia, Venezuela, etc.. rapid inflation and devaluation of currency due to dollar scarcity.. This issue isnt unique to Nigeria.

EgunMogaji2:


How much for the GoPro?

go pro has been sold

The CBN and Nigerian government seem to be playing the ostrich. Due to sheer incompetence garnished with corruption, greed and wickedness, the Naira is now as useless as [b]used/b] toilet paper. Instead of the clowns to come up with ways to strengthen the Naira, they're busy chasing AbokiFX for simply publishing the shameful exchange rates.

2fast4u:


its not a fake system. Many countries with NONE TRADABLE CURRENCIES have the same issue.. Zimbabwe, Zambia, Venezuela, etc.. rapid inflation and devaluation of currency due to dollar scarcity.. This issue isnt unique to Nigeria.

Bro, I own a real estate company in US and I have other businesses here, I use AmexFX to book for trades and funds get delivered to the suppliers, I avoided getting USD cash here. So your system can be working in Zimbabwe, Ghana or even on Mars and I have no idea. All I am saying is that it is not how its supposed to work.

Close all dorm accounts and convert foreign currencies at CBN rate to local currencies and let importation be sorted out using bank instruments and the economy will grow organically.

Without the money changers bidding on the local currencies daily, the naira will stabilize.

Eventually it has to be done. There is no way out of this.

jjman2322:



Yes.. Nigeria produces nothing.. We dont even have a big company and my FX demand is in the $6 figures USD monthly..

Someone like Emzor Pharma needs at least $20m/month for her raw material import.. We even import starch used to bind our products.. Nigeria doesnt produce anything.. As a manufacturer all we have locally is WATER.. Listen, the RAW MATERIAL FOR THE paper you're using now, yes, that notebook paper, is mostly imported from India, China and Middle East... Thats how bad nigeria is..

Nigeria is finish bro... No government could fix the mess.. If what you type there is truth i give up

CBN is confused..

Solatium:



kindly educate us if you have a better opinion,do not forget to tag me to such contribution.thank you

Good evening.

I do not have anything to add to what jjman2322 and philip0906 have said so far. But I'll summarise:


When businesses approach Nigerian banks for dollars to import stuff (via letters of credit etc), the transactions still need to be settled in dollars i.e Nigerian banks will have to remit dollars to the correspondent banks, who will then remit to the suppliers abroad.

We earn dollars from exports. When we buy imported goods we pay in dollars (or some other prominent foreign currency).

The dollars we earn is far below what we need to import stuff, because we don't export a lot of stuff. So, Emzor,for instance , would need lots of dollars to buy raw materials, but sells their products locally in Naira.

Our major source of dollars is crude but
unfortunately crude prices have gone down. Secondly, we still spend a lot of the dollars buying back refined petroleum since we dont have functioning refineries. Which is why everyone has been waiting for Dangote to finish his refinery (but that is a story for another day)

So we dont have enough dollars. Therefore CBN rations what we have. If you walk into a bank and request for dollars to import stuff, the bank will 'bid' on your behalf. You may not get your full required amount in 6 months. So many businesses take the little that cbn gives them and source for the rest in the black market. Demand and supply. Demand goes up while supply remains unchanged. Therefore price goes up.

2fast4u:


You dont understand.. Let me give a simple example.. Imagine if you were the only man left in your state? All the girls would be lining up to beg you to sleep with you....

Now imagine if there's only one girl left in your state? all the guys would be begging her to sleep with her..

I just broke down simple demand and supply..

Our currency is not in demand because no country trusts it. Naira has not been tradable in the world market for decades and I doubt it will be anytime soon.. Its too unstable of a currency.. Let me ask you a simple question, be honest..

You just won the lottery in USA... They can either deposit your $100M winnings in a USD account in america, that you can come whenever to access, or they can convert it to naira and deposit the naira in Nigeria.. (Note $100m will last you many generations)..

Guess what? 99.99% of people would pick the USA option? Why? Because in 10 years their USD is still roughly the same value minus a little inflation, but in 10 years their naira may not buy toilet paper..

Do you know that back in the late 90's, early 2000s In nigeria (just 20-25 years ago), if you had 10.000 naira, you could buy food for your entire family of 4 for the month? ask your parents... Now 10,000 is junk.. You cant say the same for people that have USD ..

The fall of Naira is directly in response to the demand for hard currencies. Eliminate the BDC and allow banks to automatically convert foreign inflow to naira.

When it comes to importation, use trade instruments to settle trades.

Whether the world accepts naira or not, shouldnt be what bothers us, we should produce what we are importing.

This is the only solution, every other step is a manufactured excuse and Naira will fall always and Nigeria will fail eventually.

But I don't get it. Is it not an ordinary website the AbokiFX is? The website simply reports the rate which they see people are exchanging Naira to Dollar (or vice versa? offline, they don't determine the exchange rate for the people. They report the Naira exchange rates to other currencies just like Bloomberg and Investing.com report the live quotes of American stock indices. So why is this government always antagonistic to the news carriers but not facing the real problem? Instead of taking a pragmatic step to fix the problems causing the Naira to fall against its counterparts, they are taking steps to keep the secret away from the people so that they can be manipulated by middlemen such as Banks and bureau de change in the course of buying or selling forex

TimeSpaceWizard:


You are not crazy, you are silly.

The parallel FX system in Nigeria has birthed too many complexities and all you do is restore the default system as all other countries do.

Do you need to buy dollars and put in your dorm acct before exporting, Only in Nigeria. But that's total bullshit.

When you close all dorm accts and allow naira to be converted at CBN rates via different trade instruments it will be exactly how other countries trade.

For now, you must continue to lament.

Quite obvious you don’t have a domiciliary account? What do you export for foreign exchange that you expect to have dollars in your account.

Buckeyemedia1:
Quite obvious you don’t have a domiciliary account?

Do I need one?


I have one here but do not need it. I do not spend dollars in Nigeria. I have an account in the USA for my business there.

CooKeed:


Good evening.

I do not have anything to add to what jjman2322 and philip0906 have said so far. But I'll summarise:


When businesses approach Nigerian banks for dollars to import stuff (via letters of credit etc), the transactions still need to be settled in dollars i.e Nigerian banks will have to remit dollars to the correspondent banks, who will then remit to the suppliers abroad.

We earn dollars from exports. When we buy imported goods we pay in dollars (or some other prominent foreign currency).

The dollars we earn is far below what we need to import stuff, because we don't export a lot of stuff. So, Emzor,for instance , would need lots of dollars to buy raw materials, but sells their products locally in Naira.

Our major source of dollars is crude but
unfortunately crude prices have gone down. Secondly, we still spend a lot of the dollars buying back refined petroleum since we dont have functioning refineries. Which is why everyone has been waiting for Dangote to finish his refinery (but that is a story for another day)

So we dont have enough dollars. Therefore CBN rations what we have. If you walk into a bank and request for dollars to import stuff, the bank will 'bid' on your behalf. You may not get your full required amount in 6 months. So many businesses take the little that cbn gives them and source for the rest in the black market. Demand and supply. Demand goes up while supply remains unchanged. Therefore price goes up.

Perfect explanation.. Someone who gets it..