I am not a financial expert but I have noticed rather strangely that whatever USD amount is made available there are those with cash ready to buy them up. That is why CBN has been struggling to manage the high exchange rate situation.

So rather than try to fight a trend of this type, the CBN can try to turn things around such that people can buy USD from them but only with enaira or whatever digital currency CBN uses. From that point onward, any money that enters as a digital currency will now stay as a digital currency. With time, say about 8 months, a lot of the excess liquidity flying around will reduce and voluntarily find their way as digital currency.

With more people now having to use such digital currency, CBN will have better control over monetary policies. The security situation will also improve because not only will a lot more people start using digital currency for their day-to-day transactions, but cash will gradually begin to reduce, and ransom payment will also become more difficult. All BTA, PTA, Pilgrimage, Form M, or any request for forex will follow this route. It will also help to reduce round-tripping because after buying USD one time, the naira equivalent is now digital. You will from that point find it difficult to round trip since the trail will now be available. This will be far better than the haphazard approach that was used the last time that brought the economy down.

Another beauty of this is that, those kidnappers who for some reason I believe are also stocking USD will push their money indirectly into digital currency, How? you may ask considering that they use the black market for their transactions.

So, here is how even those who patronize the black market will also indirectly have their cash mopped up. For BDCs to also access USD, they will also have to exchange it with digital enaira, so that the money their customers pay to them will be entering the now-bostering enaira.

This is just a draft idea but I believe it can be tweaked further by those who are experts.

One temptation CBN should not fall for is to try to prevent those who legitimately have money in a dom account from accessing it or forcing them to take naira equivalent. It may sound good on paper but Lebanon and Argentina tried it but the result was disastrous.

This is from a different thread, but I believe it makes a lot of sense.

Pythagoras001:
The currency change would be a short term fix. A long term fix would be making it impossible to spend more than 100 thousand naira in cash without trace. Maximum cash purchase should be 50 thousand naira anything above that should be by card or via Internet banking. Only accept cash transfer into the owners account that is one cannot pay cash into another person account. You pay it into your account and transfer it into the next person account. Create a national housing register with info about the beneficial owners one reason for tax purpose another reason to prevent illicit funds into real estate market. 3 create a national income register where companies report all personal incomes to. It would be alot easier to catch people with unexplained wealth by simple automation. The idea is make it impossible or extremely difficult to spend ill-gotten wealth. A simple example would be ilya Dutch the guy who stole bit coins close to 4 billion dollars he was caught while attempting to launder and then spend the money. Any avenue politicians use to launder money is also available for would be kidnappers.

So give me BTA in enaira,how will I spend it at my destination?

Hell no, that was not what was said there

Dialpad:
So give me BTA in enaira,how will I spend it at my destination?

Very novel idea, but how will they bribe judges, inec, the police to rig elections and upturn judgements and electoral votes of opposition and mobilize Street urchins to block votes from certain areas

Dialpad:
So give me BTA in enaira,how will I spend it at my destination?

Go back and read his article again 😡 maybe I go take understand

Ok I want to travel and require $15k, with your analysis, how do I get access to the ACTUAL MONEY ?

ojesymsym:
Hell no, that was not what was said there

This advice for brain dead emilokan looking for what to steal? It’s a good advice but he surrounded himself with mediocres and he himself is not smart in how to give good governance but very good in anything that has to do with crime, falsification, stealing , identity theft, polluting inec, judiciary etc with corruption

ojesymsym:
I am not a financial expert but I have noticed rather strangely that whatever USD amount is made available there are those with cash ready to buy them up. That is why CBN has been struggling to manage the high exchange rate situation.

So rather than try to fight a trend of this type, the CBN can try to turn things around such that people can buy USD from them but only with enaira or whatever digital currency CBN uses. From that point onward, any money that enters as a digital currency will now stay as a digital currency. With time, say about 8 months, a lot of the excess liquidity flying around will reduce and voluntarily find their way as digital currency.

With more people now having to use such digital currency, CBN will have better control over monetary policies. The security situation will also improve because not only will a lot more people start using digital currency for their day-to-day transactions, but cash will gradually begin to reduce, and ransom payment will also become more difficult. All BTA, PTA, Pilgrimage, Form M, or any request for forex will follow this route. It will also help to reduce round-tripping because after buying USD one time, the naira equivalent is now digital. You will from that point find it difficult to round trip since the trail will now be available. This will be far better than the haphazard approach that was used the last time that brought the economy down.

Another beauty of this is that, those kidnappers who for some reason I believe are also stocking USD will push their money indirectly into digital currency, How? you may ask considering that they use the black market for their transactions.

So, here is how even those who patronize the black market will also indirectly have their cash mopped up. For BDCs to also access USD, they will also have to exchange it with digital enaira, so that the money their customers pay to them will be entering the now-bostering enaira.

This is just a draft idea but I believe it can be tweaked further by those who are experts.

One temptation CBN should not fall for is to try to prevent those who legitimately have money in a dom account from accessing it or turning it into naira. It may sound good on paper but Lebanon and Argentina tried it but the result was disastrous.

That is why CBN has been struggling to manage the high exchange rate situation.

How does that address the underlying situation where our only significant source of foreign exchange is via oil sales ?

Or the fact that we are a majorly importing country so we’ll always need to convert your Enaira to FX to buy the goods we import ?

Unless you can convince the world to start accepting enaira , your plan is largely ineffectual. Monetary policies are not the problem here . You can even cancel BTA and PTA completely. Afterall they’ve done so numerous times in the past , how has that helped ?

One airline alone can request for $200m from cbn to send money back to their home country. That’s more than all the BTA/PTA one Nigerian bank sell in an entire year . Airline don’t keep cash in their offices . It’s all digital

First of all, you have to look at it from the point of view of CBN trying to mop up cash as they tried to do in 2023.

For ease of conversion, let's assume that the exchange rate is 1k per USD. Your 15k USD will be 15 million. Now to access that 15k USD, you will now have to fund your enaira wallet and use it to exchange the USD. From that point forward, in the eyes of the CBN, that 15 million will be deemed to have been mopped up never to return as cash to society. To be honest, it is still hazy to me but I believe it will be the first step towards mopping up cash in a non destructive way.

Dialpad:
Ok I want to travel and require $15k, with your analysis, how do I get access to the ACTUAL MONEY ?

ojesymsym:
First of all, you have to look at it from the point of view of CBN trying to mop up cash as they tried to do in 2023.

For ease of conversion, let's assume that the exchange rate is 1k per USD. Your 15k USD will be 15 million. Now to access that 15k USD, you will now have to fund your enaira wallet and use it to exchange the USD. From that point forward, in the eyes of the CBN, that 15 million will be deemed to have been mopped up never to return as cash to society. To be honest, it is still hazy to me but I believe it will be the first step towards mopping up cash in a non destructive way.

Moping up excess liquidity is not a big issue . All central banks do it from time to time .

The commercial banks still have excess liquidity except CBN has asked them to not keep it in dollars. They will hold it in naira . CBN has a way of moping up naira whenever they want

This is not a big deal and it has no bearing on the demand for USD neither is it the reason why CBN struggles to meet up with dollar demand as you claimed

The instruments that they have been using to mop up cash have been mostly with Treasury Bills, tweaking interest rates and Bonds, yet there is still a lot of cash flying around.

Some fraudulent money end up as USD with no trace as to where the source comes from. With more and more money becoming digitized, some of that will now be more difficult.

The whole idea is to try to do what Meffy tried to do with the currency change but this time starting with the big money bags and not so much as to try to meet up with demands.

Meeting USD demands in itself can only be achieved when our balance of trade improves

BitterTruth0001:


Moping up excess liquidity is not a big issue . All central banks do it from time to time .

The commercial banks still have excess liquidity except CBN has asked them to not keep it in dollars. They will hold it in naira . CBN has a way of moping up naira whenever they want

This is not a big deal and it has no bearing on the demand for USD neither is it the reason why CBN struggles to meet up with dollar demand as you claimed

ojesymsym:
This is from a different thread, but I believe it makes a lot of sense.

I admire your courage in trying to work out a possible solution to the quagmire Nigeria as a country is enmeshed in.

However, all of your proffered solutions while valuable can only work in ideal situations and countries. Nigeria is roguishly peculiar and not functional for very apparent reasons.

Remember, the people you seem to want to target with this idea are the same ones you hope to implement the same idea. Haba na...this is akin to asking the financial and economic terrorists to downgrade their looted net worths astronomically. If na you, you go gree? Check am na.

What is eNaira?

Is it Ewa, Garri, Agbado, or Cassava? This is what your President BATolomew and Senate President Sabinus-Akpabio will ask you.