Well said my brother....well said love the analogy impeessive .... but most of the block heads wont understand......they will keep stacking the notes until everythingwillbcrash

Emeskhalifa:
THE CURRENCY SITUATION: A MUST READ

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace.

Powersurge:
As long as there is arbitrage opportunity, Naira will continue to slide down the bottomless pit.

The problem is generated by CBN and banks. They give dollars to ex CBN officials, politicians, "big men" with strong connects at the official rate, even lesser sometimes. These folks float the money in at the parallel market with their foot soldiers.

Banks will hoard dollars and sell to people that would float them at the parallel market.

Buhari ordered CBN to give dollars to people going to Hajj at abysmal rate. When you toy with something as sensitive as the economy, you get burnt.

Emefiele's refusal tell off the president is the real issue here. His inability to keep the flexible exchange rate system he met in 2014 and that served the economy till May 2015 is unfortunately. The worst that would have happen would be PMB ask for his head.

Emefiele seemed to have acquiesced with the present system by profiting from it rather than to honorable resign. His supposedly ownership of Titan bank is therefore no surprise.

All 3 leading presidential candidates have promised to do away with the present corrupt system.

okeysoninv:
they should abolish official and approve black market rate so that naira will exchange to #3000. illiterate everywhere. even USA and China doesn't float their currency. no way in the world allowed black market to determine the trajectory of it's currency except in Nigeria. rather kill the spectators and hoarders that buys up dollars available. CBN can regulate the bank but can't monitor aboki BDC. it's a shame of the country

Don't mind him
And the moderator even moved this pile of shit to front page.

It is supposed to be the other way around.

By Completely abolishingng bdc, parallel market, black market and what have you. There should be only official rate.
Once this is achieved. The mad rush for FX will die a natural death.

Emeskhalifa:
THE CURRENCY SITUATION: A MUST READ

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace.

Though I only skimmed through but do we have policies in place to ensure that we aren't extorted for electronic payments? See what we already have with different charges and what have you. POS, Remitta etc.

For me, cash is king, or should I say for the common man............ Except for high levels of insecurity.

From your last point are you insinuating that the naira will collapse further? Kindly explain more as I'll like to understand.

Thanks

Emeskhalifa:
THE CURRENCY SITUATION: A MUST READ

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace.

You made so many assumptions brother. 1. U assumed that the guy with 12500 usd will want d new naira notes...wat stops the aboki frm transferring the same equivalent to his acc so he can spend in accordance with d cashless policy. 2. U also assumed that dollar would cease to be in demand for importatiins and other businesses in naija(). Simply put.....I would convert my naira to Dollar now...and change to the new naira later (this time i dnt need note. Aboki pls transfer d money to my acc). U see why ur hypothesis will not work.

Emeskhalifa:
THE CURRENCY SITUATION: A MUST READ

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace.

Multiple rounds of applause to you

This was the exact calculation I have been brainstorming all this while.
I try to balance my income proportionately incase of certainty

Dearlord:


Multiple rounds of applause to you

This was the exact calculation I have been brainstorming all this while.
I try to balance my income proportionately incase of certainty

he didn't convince me enough.....there were so many assumptions in this article. The naira will not recover frm this free fall in this context.....Only except d dollar is redesigned

The CBN governor must not be told on what to do by this time, he is either fix the FX or put resignation. The havoc is too much on Nigerian.

okeysoninv:
they should abolish official and approve black market rate so that naira will exchange to #3000. illiterate everywhere. even USA and China doesn't float their currency. no way in the world allowed black market to determine the trajectory of it's currency except in Nigeria. rather kill the spectators and hoarders that buys up dollars available. CBN can regulate the bank but can't monitor aboki BDC. it's a shame of the country

the USA dollars is floated. the government only intervene in the market if it price change will be erratic e. g by selling it reserves in the market, interest rake hike et. the primary purpose of fixed exchange rate which is price stability has not been achieved with this emefiele fixed policy we just don't have enough Dollars to back the naira. how many Nigerian would be willing to Change thier dollar to naira at the bank@ 420 instead of ah the black market @1000. this thing are just common sense. a lot of people who get the dollar at the official exchange rate do not have plans to import any input raw materials but rather move the money the parallel market.

You just made me understand every bit of it. Thanks

Emeskhalifa:
THE CURRENCY SITUATION: A MUST READ

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace.

HAH:
If the Naira is floated it will reach 5000 to a dollar.

Why should the CBN allow our economy free fall., Why should CBN allow hawks to kill the naira,

Aloy does not stay in Nigeria and earns money in dollars so is good for him but that the naira is losing its value.



If I were the CBN:

I will ban dollars in Nigeria, and convert every dorm account to Naira, if you traveling out you should be given travellers cheque.

I will make ownership of physical dollars criminal offence

Thank God you are not CBN governor.
So you are proposing to ban dollar in Nigeria and convert our hard earned dollar to Naira?
Is this a joke?

jeffoe:
the USA dollars is floated �‍♂️. the government only intervene in the market tof it will be erratic e. g by selling it reserves in the market. the primary purpose of fixed exchange rate which is price stability has not been achieved with this emefiele fixed policy we just don't have enough Dollars to back the naira. how many Nigerian would be willing to Change thier dollar to naira at the bank instead

china nko,no country will allow it's currency to battered like nigeria. mind it's not an issue of export and import . politicians, BDC are the cause of down fall of naira. nigeria has been doing import since creation of this country but it never get bad as of now. the panacea is kill the BDC and political spectators you will see everything falling to #440. no importer will Slash 80% of currency notes at home except the political class. the same political class are the one putting pressure on naira. politician spectators with no economic value

Backpedal:

Did you say the US does not float it's currency ?

You are not knowledgeable about this subject matter
Just leave it
Your currency CANNOT be a convertible currency without it being ON FULL FLOAT

US leverage on countries of the world after printing dollars as they want. We pay for that resklessness else their currency will be paper weight like ours. That's why they can't do without causing anarchy and war.
Nigerians problem is politicians. When soludo was cbn governor, he wanted to stop bdc, emefiele wanted to stop that also.

This is the effect of buhari admin during his 1yr in office when he allowed his family members friends etc to get dollar at peanut and exchange to the bdc operators before a common man can buy. His son made billions under 1 yrs.
We forgot so much.
Even one of his cousin who sell recharge card boasted how he become millionaire overnight.

Buhari killed the naira.
He set the fall and it has been like that ever since.

Dangote was another person.

Nobody should call cbn governor.

grandstar:


Emefiele's refusal tell off the president is the real issue here. His inability to keep the flexible exchange rate system he met in 2014 and that served the economy till May 2015 is unfortunately. The worst that would have happen would be PMB ask for his head.

Emefiele seemed to have acquiesced with the present system by profiting from it rather than to honorable resign. His supposedly ownership of Titan bank is therefore no surprise.

All 3 leading presidential candidates have promised to do away with the present corrupt system.

Are you sure he refused?

Soludo during his time came up with scraping bdc. He was seriously warned. You resign, they put their people and continue the rot.
Who is losing . Let all of us be mad together.
When we are ready, we know what to do.

Sanusi boasted one day that he can make millions overnight through bdc.

The south is busy chasing shadows especially yoruba. Their problem is igboman.

You work, this people milk the whole money through bdc and nnpc.

okeysoninv:
they should abolish official and approve black market rate so that naira will exchange to #3000. illiterate everywhere. even USA and China doesn't float their currency. no way in the world allowed black market to determine the trajectory of it's currency except in Nigeria. rather kill the spectators and hoarders that buys up dollars available. CBN can regulate the bank but can't monitor aboki BDC. it's a shame of the country

Continue deceiving yourself.
The govt. is indirectly in charge of the black market.

Acidosis:


CBN is BDC and BDC is CBN. know this and know peace o.

Thank you.
Leave those quoting textbooks.

srmagency:


Continue deceiving yourself.
The govt. is indirectly in charge of the black market.

They are the black market.

okeysoninv:
there is so no country without protectionism. USA protects their currency. china do, every country do.

[sup][/sup]

The subject at hand is floating
The US currency is on free float

This has got to be the most foolish statement I have heard this year. The Naira was okay, nay, stronger than the $ and at par with the £ when the exchange rate was fixed, until 1986 when they introduced the floating policy along side that has seen the Naira float down the drain slowly! We need to stop giving stupid people platforms to speak just because they look sane!

descarado:

Are you sure he refused?

Soludo during his time came up with scraping bdc. He was seriously warned. You resign, they put their people and continue the rot.
Who is losing . Let all of us be mad together.
When we are ready, we know what to do.

Sanusi boasted one day that he can make millions overnight through bdc.

The south is busy chasing shadows especially yoruba. Their problem is igboman.

You work, this people milk the whole money through bdc and nnpc.

There are valid points that will be appreciated by all and sundry if they are devoid of ethnic colorations. This is one of them.
What as south especially yourubas chasing shadows got to do with your point. Would your point not have remained sensible and logical If you have not stated that yorubas see igbo man as their problem.

Truth is, as far as the bastardization of the economy is concerned, it is a case of if " the sky collapses, every one under suffers the consequences".

It does not matter the tribe that sees itself as the saint and victim in every situation or the one that is perceived to be the cause of all the woes bedevilling the country.

Emeskhalifa:
THE CURRENCY SITUATION: A MUST READ

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace.

you only talked of one scenario. what of other possibilities. in this country positive things don't go as expected bro.

this Ur analysis has 90% chances of hugee shock.

I know some block head might not know the implications of double exchange rate....
Let me analyse it a bit
CBN has a lower exchange late of 400+ to 1 dollar, while aboki( the normal BDC guy on your street) has an exchange rate of 1000 to 1 dollar.
Now the issue is the selfish mindset of our people in corridor of power.
They channel the scarce forex( dollars) in the banks, ( CBN) by going to the bank to request for dollar at a very low rate because they have the connection to get it., They will now channel it to Bureau De change guy on street and exchange at a very highly rate...., Some will even hoard the dollars they collected at very low rate to create scarcity.
So if CBN should stop the dual exchange rate. There wouldn't tbe any need for any BDC(aboki) going to correct dollars from bank and hoard or now exchange at high rate. Cos it will be the same rate.
But alas nah 9ja we dey, CBN cant denied they dnt know what is going on with Thier evil and corrupt policy of double exchange rate because they benefit from the evil policy.

I just keep on asking myself if there any business aboki man will do that he will prosper without preferencial treatment or policy... Very easy for aboki to collect dollar from bank than a normal southerner or easterners that actually needed the forex for either to travel or business purposes, where as Aboki only collect the dollar for hoarding purpose or to exchange at higher price.

HAH:
If the Naira is floated it will reach 5000 to a dollar.

Why should the CBN allow our economy free fall., Why should CBN allow hawks to kill the naira,

Aloy does not stay in Nigeria and earns money in dollars so is good for him but that the naira is losing its value.



If I were the CBN:

I will ban dollars in Nigeria, and convert every dorm account to Naira, if you traveling out you should be given travellers cheque.

I will make ownership of physical dollars criminal offence

Thank God you are not the CBN

Lanre4uonly:
It's totally worrisome with the way the naira continues to nosedive against the dollar.

That CBN governor just need to go with buhari, he is even one of the reasons we must vote out apc ,if not they can say they want to retain him again

HAH:
If the Naira is floated it will reach 5000 to a dollar.

Why should the CBN allow our economy free fall., Why should CBN allow hawks to kill the naira,

Aloy does not stay in Nigeria and earns money in dollars so is good for him but that the naira is losing its value.



If I were the CBN:

I will ban dollars in Nigeria, and convert every dorm account to Naira, if you traveling out you should be given travellers cheque.

I will make ownership of physical dollars criminal offence

This is not the problem. THE MAJOR PROBLEM IS THE HIGH LEVEL OF IMPORTATION ,WHICH IS FUELED BY THE HIGH DEMAND FOR IMPORTED PRODUCTS .
Once we are able to curtail our imports, and produce many of our goods here ,there will be no problem

englishmart:
This country is badly governed. Official exchange rate is 439, but you can only access it at 800+. Are we no killing ourselves?
This government is bent on impoverishing the masses, and making things as tough on them as possible.
Feudism they say, thrives when the people are poorer and less educated.

Do you see now exactly that APC is a complete failure in Nigeria? It has never been so bad, the gap between the official rate and the black market at almost 100%.

Powersurge:
As long as there is arbitrage opportunity, Naira will continue to slide down the bottomless pit.

The problem is generated by CBN and banks. They give dollars to ex CBN officials, politicians, "big men" with strong connects at the official rate, even lesser sometimes. These folks float the money in at the parallel market with their foot soldiers.

Banks will hoard dollars and sell to people that would float them at the parallel market.

Buhari ordered CBN to give dollars to people going to Hajj at abysmal rate. When you toy with something as sensitive as the economy, you get burnt.

You clearly understand it.

pa3k001:
he didn't convince me enough.....there were so many assumptions in this article. The naira will not recover frm this free fall in this context.....Only except d dollar is redesigned

The naira can recover
But this govt has to leave first

Dearlord:


Multiple rounds of applause to you

This was the exact calculation I have been brainstorming all this while.
I try to balance my income proportionately incase of certainty

If you follow that Oluwole economic explanation, you fit enter gutter.

Op, you nailed it perfectly, I said it that the CBN would not release back large volume of paper currency back into the economy...

Emeskhalifa:
THE CURRENCY SITUATION: A MUST READ

1). So many Nigerians have stacked Naira notes in their closets and are cut up with this policy of the CBN. There is a rush by ignorant Nigerians to convert their Naira to Dollars. Naira is at all time low against dollar and it's going to go even lower. For example a man converts #10m to 12,500 USD at the current exchange rate. It's easier to keep it with himself than to deposit in a Domiciliary account with a DMB because of the stringent policies around FX cash deposits. He hopes that by December when the new Nigeria is floated, he'd have his FX converted back to Naira from the Aboki guys he bought his USD from.

2)The Aboki man who sold FX to his customers at exorbitant rate excitedly goes to the DMB to deposit the millions of Naira he got the the FX swap he did. He knows he is getting richer in geometric proportion by this new policy by the CBN. He awaits the printing of the new Naira notes so as to reconvert the Naira he has in his account today USD and continue making more money.

3). All customers who deposited their Naira notes, those depositing and those who would be depositing are eagerly waiting for December 15. The DMBs are also waiting for the said date. Meanwhile there is a cashless policy waiting to hit all Nigerians by January 2023. On December 15th, customers would rush to the DMBs for new notes so as to withdraw as much as they can before January when the cashless policy would be effected 100%. The DMBS would rush to the central bank branches to withdraw new notes. The branches would go to the H/O for new notes. H/O would release just a little to branches based on cash management policies. CBN Branches would release in trinkets to DMB branches and tell them to go manage their customers. DMBs would revert back to their customers based on the low available new cash notes. There would be slight panicking as customers who deposited old naira notes cannot retrieve same notes from the DMBs anymore because of unavailability. Remember, digital money and paper money is still money and so customers would be advised to use electronic channels to make payments.

4) The Aboki guy who kept millions of Naira is also a victim of the shortage of new notes and so he cannot buy back FX from his customers who were hoping to return the ones the got earlier ones the new notes are in place. Aboki begins to panick as well. Those who have FX and need naira notes begin to sell their FX to people who have naira whether old or new just to cash in before January. In doing so, USD begins to crash as rapidly as it rose. Much of the FX becomes deposited in DMBs as carrying the raw cash isn't useful anymore. The CBN is happy because there is more FX in the banking system to give for Forms A, M and Q. Naira begins to gain rapidly against the dollar.

5). In January, cashless policy takes effect. So even if the CBN makes available more new notes to DMBs, customers cannot withdraw above the stipulated across-the-counter limit to avoid heavy charges. Customers are forced to use electronic payments, FX policy and transfer and withdrawal is so stiff that swapping FX and Naira is no more a gain. USD parallel and black market prices crash all the way down to CBN rate. Inflation based on importation of goods and services is checked as Naira becomes strong against dollar. People who have physical dollars would lose. There would be limited access to naira notes as electronic transfers become prevalent. Enaira purchases also become more as Nigerians look for most seamless methods to do payments. By June, whoever takes over power would have a soft landing as this policy by the CBN has controlled a whole lot of inflation, corruption and economic degradation.

6). If you have Naira notes stashed with you, return them back to the bank through your account. Don't try to play smart trying to beat the system, you may become the architect of your own loss. Your 12,500 USD may fall from #10,000,000 to #5,000,000 in June, 2023. Meanwhile if you put same #10,000,000 in Treasury Bills at the current 14.5%, you should be gaining about #725,000 at the same period.

Let's try and look at the bright side of things, Nigeria shall be great by God's grace.

JoeNL22:

"For with God, OBI must be POSSIBLE!"

he has lost already just get ready to continue calling Nigeria a zoo like you have been doing...

JoeNL22:

"For with God, OBI must be POSSIBLE!"

he has lost already just get ready to continue calling Nigeria a zoo like you have been doing