when details follow, i will understand

But as for now, i dont understand

Nice one!
Dollar MUST be rendered completely useless within Nigeria

DenreleDave:
when details follow, i will understand

But as for now, i dont understand

It will reduce demand for $ which will strengthen Naira.

Good.

Nigerian banks are a big clog in the wheel of this economy.

DenreleDave:
when details follow, i will understand

But as for now, i dont understand

I also don’t have the full details. I also don’t know if it’s a beneficial decision or not yet.

But from the deadline, it’s self explanatory enough.

—There are some people who borrow loans from banks and instead of using Nigeria assets as collateral, they can choose to use their foreign currency as the collateral for the naira denominated loan.

—So if I have foreign currency assets, but need naira financing for a project, I can approach banks and they accept that as collateral.

—Now you can use;
Real estate properties wey dey within Naija..
Treasury bills and bonds issued by the Nigerian government.
Marketable securities like shares listed on the NSE.
Other tangible assets valued and verified in Nigerian naira.
All those fixed deposits and etc

CBN has done a lot of things right in recent times that even when we do not understand their actions, we somehow know that they are trying to achieve an aim.

Who else has noticed that Lamba king is now careful not to criticize the CBN in particular. When USD was increasing arbitrarily, he was always quick to release trader-level economic advice to make his followers think he knew what he is doing.

He was hoping that USD goes north of 2500 naira. I hope he learns that there is more to life than just saving cost.

Thank God most of his suggestions were at variance with those of the CBN otherwise his mob would have claimed that CBN took his advice to make the little progress they have been making.

DenreleDave:
when details follow, i will understand

But as for now, i dont understand

Another way to look at this could be that CBN trying to increase FX inflow.

—Normally when you have cash reserve in $$ as an individual and you want to execute a project in Nigeria, you should have sent it as inflow and convert it to naira and etc.

—But some people got the $$, and instead of inflow, they keep their dollars assets, approach bank and get naira loan backed by that, so they just retain their dollars and put more pressure on the naira.

—Now you won’t be able to do that. Either use your asset in Nigeria as collateral (if you have), or send that $$ you’re keeping abroad back home for that thing you’re tryna do.

Now people can argue that it could cause distortion as those set of people won’t have incentive to get loan again and it might kill business and productivity. But I’m sure CBN have studied the merits and demerits of both arm.

Seem Cardi B's mission this year is to reduce the pressure in the Naira and allow it rise by itself

This report doesn't provide any context at all, knowing that most readers have no idea what this means

On a scale of 1 to 5 (1 being the lowest), I think this directive will have a low impact (2 perhaps) on strengthening the naira against foreign currencies.

First, while the aim of the directive is to potentially boost foreign reserves, foreign investors could see it as a negative indication that government wants to have more control over the local currency. Also, this may be seen as a desperate move by the government to address balance of payment deficits. Usually, you address balance of payment deficits by increasing exports, reducing imports, promoting tourism and remittances, attracting FDI etc.

Secondly, this may affect the already existing risk management strategies of these commercial banks. They're using foreign currencies to hedge against loan defaults. What alternative strategies are you bringing to the table if this has worked for them over time in an environment with high probability of political and policy instability?

CBN no wan gree this time

DenreleDave:
when details follow, i will understand

But as for now, i dont understand

One of the practice that is making the Banks Hoard dollers .
Thus Dollar availability becomes impossible 😞😞😞

Good development.

Hmm..
So it was so?

Kai, some people day don spoil with dis good news. Na so dem go squeeze face upandan till evening.

Nigeria will be Great

Nice.

Nice one

This one seems sustainable

If u like sell Ur dollars na U Sabi...

Dollar will still go up after sallah

God bless the good people of Southsouth and Southwest

As much as I pray for things to improve, I don't trust our government. We are far too corrupt to accommodate any miracle.


Tinupoo is a criminal, goat no fit born lion.

Good move.
This is the Bulaba I know.

Jimoh Ibrahim used this strategy to hedge his Naira loan exposures, only repaying them off when the Pound had significantly gained against the Naira.

LegendHero:



https://punchng.com/breaking-cbn-stops-use-of-foreign-currencies-as-collateral-for-naira-loan/

Day don de break.

Donaldoni:
Nice one!
Dollar MUST be rendered completely useless within Nigeria

You spoke exactly the words in my mind. I really mean word for word! Dollars must be rendered completely useless for anything other than international trade.

Noted.

COMRADES, I don't know when this drug lord will kick the ground

Nice one

Walahi dollar must fall and Crash laslas

Every step taken to mitigate the demand and dependence on the Dollar at the detriment of the Naira is most welcome.

Nothing will give me more joy than to see Nigeria's economy soaring high.


I await to see the prices of goods and services plummet all over the nation.

Pharmaceuticals are still very expensive.

Uhm

DenreleDave:
when details follow, i will understand

But as for now, i dont understand

I think a good step further to relax the use of and demand for dollars in naira transactions