Favourchris:


Bro importing economy 9 u say no get demand for dollar, ah think again.

With our current high level of emigration..

Dialpad:
This is a good move, I know many are waiting to hear news of when we can start spending dollars on our naira cards.

How can one have millions in a naira account but can't spend when you travel out, some lunatic tells me I can only spend $100 monthly.

If you are waiting to spend dollars on your naira card, click the like button.... lol

vastolord4:
Please who can interpret in plain english

PoliteActivist:


Mr. Big brain you just repeated what was said without explaining anything

Ogene001:
Tinubu has destroyed abookis after deceiving them with Muslim/Muslim ticket and dancing in Kano. Peter Obi used to say these things but Tinubu was fooling around to deceive northerners when he had similar plans.

Basicend:


Confirm the reserve. It's not anything close to that.

Buhari has almost taken out everything.

lorbah001:
Seriously I am getting frightened by this pace...ah, BAT is outrunning even the supposed healthy clowns.

A better Nigeria is here and anyone wishing against her wellness will never succeed.

Moniya4Real:
I bet only educated people can comprehend the technicalities of the content of this stuff. People that say education is a scam …. I am sorry o

franchasofficia:
I am a realist, an economy expert and an FX industry key player too even though I am an engineer by first profession.



I deal on FX on a daily basis.



My desire is for it to work out fine but I am just pointing out some loopholes.


Tinubu seems to have good intentions to surprise we his critics but he seems much in a rush in doing some of his good policies without proper planning and preparations.



If it works out fine, that will be awesome and a big plus for him, I will become one of his fans.




Its unfortunate my influence haven't reached the level of getting national attention, I would have published an article to guide Tinubu and his economic team on some of these policies and how to ensure they don't fail at the end

franchasofficia:
I am a realist, an economy expert and an FX industry key player too even though I am an engineer by first profession.



I deal on FX on a daily basis.

Oboi, quote and send it to me. He go reach the door u want .



My desire is for it to work out fine but I am just pointing out some loopholes.


Tinubu seems to have good intentions to surprise we his critics but he seems much in a rush in doing some of his good policies without proper planning and preparations.



If it works out fine, that will be awesome and a big plus for him, I will become one of his fans.




Its unfortunate my influence haven't reached the level of getting national attention, I would have published an article to guide Tinubu and his economic team on some of these policies and how to ensure they don't fail at the end

abbey621:
Notice the difference between this regime and Buhari's regime? Buhari gives order, CBN contradicts him. Tinubu gives order in the morning by night, CBN complies.....Werey pass werey jaare

perrychemical:


Which order is Buhari given? Do you think Buhari understand the nitty gritty of modern economic?

oluwaseyi0:
how is this Mr Tinubu getting away with all this, so many president can't attempt this

slimthugchimee2:
Omoh the grammar here strong pass me
People wey no understand shishi gather here

Abeg person help me explain

Ogene001:
Tinubu has destroyed abookis after deceiving them with Muslim/Muslim ticket and dancing in Kano. Peter Obi used to say these things but Tinubu was fooling around to deceive northerners when he had similar plans.

Blackhacker:
Here is the what the news is all about for those of you with small brain:

CBN announces operational changes to the Nigerian FX Market: segmentation abolished, I&E window becomes the main segment. Willing Buyer, Willing Seller model reintroduced. Government-related transactions based on preceding day's I&E window rate. Prohibition of trading limits on oversold positions, permission to hedge short positions with OTC futures. Order-based two-way quotes reintroduced, cleared by a Central Counter Party. Order Book reintroduced for transparency. Trading hours from 9am to 4pm. RT200 Rebate Scheme and Naira4Dollar Remittance Scheme cease on June 30, 2023. Further guidance to be communicated. Participants urged to comply.

Dialpad:
This is a good move, I know many are waiting to hear news of when we can start spending dollars on our naira cards.

How can one have millions in a naira account but can't spend when you travel out, some lunatic tells me I can only spend $100 monthly.

If you are waiting to spend dollars on your naira card, click the like button.... lol

franchasofficia:
How did they factored them in?



Have our local FG owned refineries started operation?

Petrol import alone consumes more than 50% of Nigeria's FX. If we are still importing petrol, CBN will continue to run short of FX until we stop petrol importation completely and also boost our Agricultural sector to start exporting more.



More than 80% of containers that bring in goods into Nigeria go back to their country of origin or port of loading empty, its a sign of a dead national economy. We must regig and revamp our export, especially agro export which is the only thing we can export after crude oil to solve our FX shortage crises.




Failure to solve our low FX inflow while floating the USD to depend on free market demand and supply will only lead to uncontrolled crash of naira to maybe 1000 to 1 USD if not more in the coming weeks or months

franchasofficia:
A good start for now.


But guess where the problem is?


CBN doesn't have enough dollar to meet Nigerians' usd demand, remember we are an import dependent country.


What it means is that Nigeria doesn't earn enough FX through export to meet up with the dollar demand of Nigerians, which means many Nigerians will be going to Aboki for dollar and Aboki will be determining the rate based on demand of dollar for the day, and this will definitely lead to uncontrolled crash of Naira value against USD.



I commend Tinubu for this good dollar floating policy, but it would have been better done after putting certain things in place to ensure CBN earns or have enough dollar to supply to all banks to sell to Nigerians.



One of those things that would earn us more FX and also reduce our FX outflow is putting our local refineries in working condition and leasing them out to private entities to run for Nigeria to reduce importation of petrol which gulps most of our FX. While fixing the national refineries, Dangote's refinery will also be ready and both combined would solve our importation of petrol which consumes majority of Nigeria's FX.

pkota:


I tried to check for simplier meaning. This is what it means below


Foreign Exchange Market Changes


User
Please explain the below to a ten year old. OPERATIONAL CHANGES TO THE FOREIGN EXCHANGE MARKET

The Central Bank of Nigeria (CBN) wishes to inform all authorized dealers and the general public of the following immediate changes to operations in the Nigerian Foreign Exchange (FX) Market:

• Abolishment of segmentation_ All segments are now collapsed into the Investors and Exporters (I&E) window Applications for medicals. school fees. BTA/PTA, and SMEs would continue to be processed through deposit money banks

• Re-introduction of the "Willing Buyer, Willing Seller model at the I&E Window. Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window

• The operational rate for all government-related transactions shall be the weighted average rate of the preceding day's executed transactions at the I&E window, calculated to two (2) decimal places

• Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures. Limits on overbought positions shall be zero.


• Re-introduction of order-based two-way quotes, with bid-ask spread of Ni. All transactions shall be cleared by a Central Counter Party (CCP). • Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades.

• The operational hours of trades shall be from 9am to 4pm, Nigeria time

• Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023.

Further guidance on these matters shall be communicated in due course All market participants and the general public are kindly enjoined to abide by these rules.

Ange a re-Ejernbi, PhD Director, Financial Markets

ChatGPT
Imagine you have a collection of different toys, and you want to exchange some of your toys with other kids who have toys you like. The Central Bank of Nigeria is like the organizer of this toy exchange. They have made some changes to how this toy exchange works, and I'll explain them to you.

First, they used to have different sections or groups for trading toys, but now they have combined everything into one big group called the Investors and Exporters (I&E) window. This means that everyone who wants to trade toys will do it in this one place.

Second, they have a new way of deciding how much one toy is worth compared to another. It's called the "Willing Buyer, Willing Seller" model. This means that the price of toys will be determined by how much someone is willing to pay for a toy and how much someone else is willing to sell it for. This helps to make sure that the prices are fair.

Third, when the government needs to exchange their toys, they will use the average price from the previous day's trades in the I&E window. They will calculate this average to two decimal places, which means they will be very precise.

Fourth, they have some new rules about how much toys people can have if they have too many or too few. If someone has too many toys and it's causing a problem, they won't be allowed to have any more. If someone doesn't have enough toys, they can use a special contract called OTC futures to protect themselves from losing more toys.

Fifth, they are bringing back a way to show how much people are willing to buy or sell their toys for. It's called the Order Book, and it helps everyone see the prices people are asking for their toys. Also, all the trades will be cleared by a special group called the Central Counter Party (CCP), which makes sure everything is done correctly.

Sixth, they have specific hours when people can trade toys. It will be from 9 in the morning to 4 in the afternoon, based on Nigeria's time.

Seventh, there are two programs that are going to stop. One is called the RT200 Rebate Scheme, which gave some benefits to people who exchanged toys. The other is called the Naira4Dollar Remittance Scheme, which had some special rules for exchanging toys when people sent money from other countries.

These changes are important for everyone who wants to trade toys, and it's essential for them to follow these new rules. The Central Bank of Nigeria will give more information about these changes later on.





User
Please upgrade it for a 15 year old

ChatGPT
Sure! Let's upgrade the explanation for a 15-year-old:

Imagine you're part of a big marketplace where people trade different currencies, just like in a market where you can exchange money from one country to another. The Central Bank of Nigeria is like the manager of this marketplace, and they've made some changes to how things work. I'll explain it to you in simpler terms.

First, they used to have different sections for trading different types of currencies, but now they have combined everything into one main section called the Investors and Exporters (I&E) window. So, all the currency trading will happen in this one place.

Second, they have a new way of determining the exchange rate between currencies. It's called the "Willing Buyer, Willing Seller" model. This means that the value of one currency compared to another will be based on what someone is willing to pay to buy that currency and what someone else is willing to sell it for. This helps to ensure fairness in the exchange rates.

Third, when the government needs to exchange currencies, they will use the average exchange rate from the previous day's trades in the I&E window. They will calculate this average with two decimal places to be more precise.

Fourth, they have some new rules regarding how much currency people can have if they have too much or too little. If someone has too much currency and it's causing a problem, they won't be allowed to have any more. On the other hand, if someone doesn't have enough currency, they can use a special contract called OTC futures to protect themselves from losing more currency.

Fifth, they are reintroducing a system that shows how much people are willing to buy or sell currencies for. It's called the Order Book, which displays the prices people are asking for their currencies. Additionally, all trades will be verified and cleared by a special group called the Central Counter Party (CCP) to ensure proper execution.

Sixth, they have specific trading hours when people can exchange currencies. It will be from 9 in the morning to 4 in the afternoon, based on Nigeria's local time.

Seventh, two programs will be discontinued. The first is the RT200 Rebate Scheme, which provided certain benefits to individuals exchanging currencies. The second is the Naira4Dollar Remittance Scheme, which had specific rules for currency exchange when people sent money from other countries.

These changes are important for everyone involved in currency trading, and it's crucial to follow these new rules. The Central Bank of Nigeria will provide further guidance on these changes in the future.




Send a message.

VeeVeeMyLuv:

He also made us to believe again that indeed the presidency can work!

Etisoul:
Unclear to a layman. Please could someone help break it down?

Sukkyy2010:

Lol, have you ever sit back and reason why he's been called Jagaban?

Blackhacker:


I did Summarize that's why you have small brain to understand

Vision101:
Two major take away:
BAT has won the battle on removal of fuel subsidy. NNPC has no major advantage anymore. They and private importers will source fx at the same rate. There will be competition among suppliers. There will be marginal drop in price subject to the rate of exchange.

Japa through study route will be more expensive. You can't pay school fees with cheap cbn rate through form A.

Students particularly in the UK that have not completed their studies will have to redouble their efforts between them and their parents to be able to pay their bills. Currently they take advantage of arbitrage thus do menial jobs, sell their pounds in black market and use the naira realized to buy cbn fx through form A.

For example: earn £1,000. Change in black market at say #900 = #900,000. Use the naira to buy cbn fx through form A at say #600 to £1 = £1,500.