₦airaland Forum

Validated:
Capital NO. It will worsen the situation in that the liquidity will be reduced. Only Western Union, Money Gram, etc will benefit from it. How? They collect $ from abroad and pay Naira, hence BDC gets nothing. It means that for BDC to get money, the individual will have to send cash to relative, which is very risky.

Cardozo is incompetent all-round!

Isn't it good for BDC's to be phased out if they can't compete with the market? Why should there be street sale of FX?

lebienconnu:
I am not an economist so I stand to be corrected.

Remittance from the diasporans is a major source of dollar supply. Gong by the simple law of demand and supply, I see Naira falling more against dollar and other currencies if this source is tampered with like being considered.

People will get their dollars from western union and other IMTO agents in neighbouring countries like Benin republic and come back to sell in Nigeria at a much higher rate.

If the above is true then I quite agree that is a trial and error policy and that a woeful failure awaits it.

Majority of people who send money to Nigeria just want to help their loved ones at home. Those folks at home don't need dollars for anything. They just want naira to buy yam, gas, and kerosene.

Okoroawusa:
As long as there are no differences between bank rate and black market rate will this work. But once there is disparity between them even if it's #1 then people would prefer dollars in cash to change at the black market thereby defeating the whole essence.

Let's see how this goes

Most people wouldn't go through that stress if the difference is less than 50 naira.

forgiveness:
I have said it. Turn the dollar and foreign currency in the domiciliary account into naira. This will starve the BDCs of foreign currency.

2. No organization or schools must be allowed to do transaction in cash in Nigeria. Including Nigerian immigration. In this way, pressure will reduce on dollars. I was sorry for Nigeria when I learnt British school in Lekki pays in dollars as at 10 years ago.

3. Nobody must possess 1,000 dollars coming into Nigeria. And any currency brought into the country must be deposited at the bank or change to naira at the airport or any point of entry.

4. Allow banks to make naira transfer in order to pay for school fees abroad.

5. Return back to the days naira atm card can withdraw money outside Nigeria.


These will reduce pressure on dollar demand. Nobody will need to search for dollars.

Your 4th and 5th point would only be possible when the Banks are confident they have enough dollars to guarantee this. Before 2016, this was the case because the CBN and Banks had the FX reserves to match the demand (which has grown over time).

Obinoscopy:
It will help the naira temporarily but will rebound with immense negative effect on the naira due to the scarcity of the dollar. Whether we like it or not, Nigeria is import driven thus thrives on the dollar. The moment dollar gets scarce, the prices of things will go up, including petrol. The dollar will get scarce because Nigerians don't trust that the government will allow a free float of the forex exchange thus there will be a reduction in the inflow of dollar into the economy.

The solution is simple, the government needs to put mechanism in place to switch our economy from a consumption driven economy to production driven one. Then the government can allow a free float of the naira which will give confidence of investors and diasporans allowing their hard earned dollars to get into the economy. Once dollar floods the economy, it's value will drop and the naira will gain.

In 2018/2019, dollar was 350. Today it is 1400. Are you saying we were producing much more in 2018 than today?
The solution may look simple as you said, but even when you put mechanisms in place for production, in how many years would that materialize?

Earthquakes:
I make money in USD, I run international business that requires importation and you want me to send my USD to naira then buy it back when I want to go to China. Lol you guys are just shallow minded because you think everyone sends money to Nigeria to be used in Nigeria lol

But almost anywhere else you go in the world, you don't use foreign currencies there. You convert to their local currency and when you go out, you reconvert to dollars or whatever. This is how it was before 2020 COVID where Emiefele started changing things in a bid to attract dollars in the reserves but it also meant big time undocumented funding of BDC's.

Last time I checked, CBN hasn't banned domicillary accounts because they know people like you who need FX are still in the system.

Maybe when there's enough dollar liquidity, naira cards for international transactions would become active again.

vaxx:
Nigeria naira become the most useless currency in the world . Cedis used to be known for this reputation way back.

Nigeria devalued her naira twice. Did Ghana devalue the cedis in 2022?

ValarDoharis:
Dollar is not coming in. What people do is that they send dollars among themselves abroad and give the equivalent in naira from their naira account. Most people abroad also have naira accounts and the reason for sending this way is to avoid transaction fees

Why go through all that stress when official bank rate is competitive?

didymario7:
The black market and official rate will never be thesame. They will always be willing to offer more than the official rate. Use your head to think!

So why are they thesame in UK, U.S, Dubai, even Ghana and Kenya?

Throwback:
Dude, I studied engineering in Nigeria and also did further studies in same Engineering in foreign schools.

I earn dollars and I have a Nigerian domiciliary account and foreign bank accounts in whatever country my multinational oil job takes me to.

I do not have any reason to complain about the terrible exchange rate as it is to the benefit of people like me.

That being said, Nigeria is very foolish to allow a poor country like itself be subsidising education and providing infrastructure for UK and US schools.

I know how much people like me cough out to pay a session fee abroad, when we have refused to pay a tithe of it in our own local education.

We need to stop the bleeding.

10yrs embargo on foreign education with funds earned in Nigeria, will only help our own economy and our education sector.

Anyone who wants to study abroad should find his/her way there and work and use monies from that economy to pay for the education they require.

UK ensures that the bulk of the money foreigners make in their economy, stays within their economy.

But we Nigerians that are opportune not to be suffering like the masses, are still pouring out the Nigerian funds into West.

The government need to wake up and employ commonsense but humane policies that will help turn the tide.

All I have said is for the love of my country. There is nothing to gain for me, as I would even be one of those to lose my advantage.

Make I accidentally get to power in Nigeria, una go know say Wike no wicked.

All those crying that they want change, they want reform, but in reality they are just unhappy they are the ones left out of a corrupt and loose system they still want to persist, na formatting I go dispense to everything and everyone.

The problem with all these is that the more you ban things the more the black market thrives and begin to depart from the official rate. You don't ban outrightly. You ban systematically.

Earthquakes:
Did you say good for the economy??
Okay my type will totally stop sending money to my dom account in Nigeria and leave the money in American Express or so.
Because you don’t have USD you think it is good?
Let’s see how it will go in coming days when dollars stopped coming in to Nigeria.
Those guys will keep their money abroad, only people with illegal stay will be willing to send money to Nigeria going forward because my type and few will stop immediately.

If you are abroad, why do you want to save dollars in Nigerian accounts?

occfx:
Gbam... Government against her citizens. We will defeat them

No need for all that. Just send money to Bank direct, you would get in and around 1480.

kenmaro:
...and it didn't work. They are only making policies for the ordinary Nigerian who travels, hustles, saves, and send some of it back home to help his family back home or to invest because no politician sends peanut through western union rather they meander huge funds through offshore account settlements. I would have suggested they disallow personal domiciliary accounts but it will make them take the money to foreign banks outside Nigeria.

Only solution is declare an emergency on industrialisation of the whole economy, reduce drastically tax burden on 100% local content manufacturing companies, stabilise electricity, improve on security, guarantee investment security, reduce drastically the rate of corruption in government and political offices, etc. You will the naira smiling!

Buhari and Emiefele didn't have same policy. Infact Buhari and Emiefele went away from this policy in 2020.

justmondris:
Please send your money to them via USDT on Binance and let them sell it via Binance P2P at a better exchange rate than what the banks are offering.

The exchange rates at the Banks are not that far off from the black market rate. So you just they stress yourself.

justmondris:
Please send your money to them via USDT on Binance and let them sell it via Binance P2P at a better exchange rate than what the banks are offering.

Exchange rates no longer that different from what the banks and even CBN is offering.

mailemy:
Can someone explain to me the effect this policy will have on the black market exchange people?

In the past, CBN normally had their rate which was way lesser than the black market rate.

Anyone sending money to Nigeria would not want to send to Nigeria at 900 naira when there is a black market rate that is higher at 1400 already. So the likes of Sendwave. lemfi, etc were bypassing the official banks and storing dollars sent by diaspora in offshore accounts while they ensured their rates were closer to the black market rates.

What Cardoso has done now is take things back to what they were before 2020 COVID when Emiefele started changing things and when Shonobi in 2023 added another complexity to it with 2.5% cap (plus and minus).

Cardoso has brought the official exchange rate closer to the black market again.
Official rate as at yesterday = 1474
Black market rate as at yesterday = 1482
With this, apps can send money home to the Banks and official market and get it at a rate close to the black market and would not have to play Hankey pancky.

azpekuliar:
Cheering news for us crypto lovers. More crypto adoption!

Lol they are coming for you guys last last.

Meliforme:
This is in contention to be one of the dumbest post ever to hit this thread. Imagine Osimhen bowing down to things that can't help him and has never helped anyone.

It's a joke.

MetalJigsaw:
Iwobi is lazy. His own is laziness nothing else. Wetin be "him style no suit African football" for how many years now playing in African soil?

He's playing in England the last time I checked so what's his problem. Which English/white midfielder is he even emulating by jugging all around the pitch while opponents navigate past him with so much ease.

Aribo is still better. Iwobi is simply a minus one when we're defending. Very terrible for a midfielder.

Aribo offers nothing to the game. Iwobi to me is still better. Iwobi at least can create chances on his good day. What can Aribo do on his good day?

Mujtahida:
Person wey our in - house coaches don condemn pata pata. Offensively he falls short. No doubt about that. But defensively, he's tight and helps the team keep it's structure.

But he is a defender first before anything else. So he is not bad overall, at least in his core duties as a footballer. Anything else is extra.

naptu2:
Coach Godwin Izilien is dead.

Is it not same coach who lamented last year on channelstv sports that he was owed his salary by NFF for decades?

codemaniacs:
Yusuf is a DM/CM and DM's are trained to take short and accurate passes.

In this match, Iwobi was taking risky long passes instead of short passes..

And again once Aribo came on SE lost the midfield.

Truly I don't see the usefulness of that Aribo in the team. Or is it just me?

AkoniMoipei:
Kenya's Health Care System Ranked Second Best in Africa - Numbeo Report

Kenya has been ranked as having the second-best healthcare system in Africa by Numbeo - the world’s largest cost of living database.

Numbeo, a crowd-sourced global database of quality-of-life data, revealed that only South Africa beat Kenya in terms of quality health care offered to citizens.

Noteworthy, Kenya was the only East African nation in the top 7 countries in Africa offering quality healthcare.

Kenya scored 61.1 in Health Care Index which was bettered by South Africa at 64.0.

“Health Care Index is an estimation that evaluates the overall quality of the healthcare system, including factors such as healthcare professionals, equipment, staff, doctors, and costs,” Numbeo explains.

The Health Care Index is crucial as it provides an assessment of the healthcare infrastructure, services, and resources available in a specific location.

Apart from the Health Care Index, Numbeo further uses the Health Care Exp Index which looks at the quality of a healthcare system by emphasising the positive aspects.

In the Health Care Exp Index, Kenya scored an impressive 108.3 but was again bettered by South Africa at 115.3.

Other countries that featured in the top seven included Tunisia, Algeria, Nigeria, Egypt and Morocco.

Only South Africa and Kenya had a Health Care Index of above 60 with Tunisia and Algeria scoring 57.0 and 54.7 respectively.

Nigeria, Egypt and Morocco were all under 50 on the Health Care Index at 48.7, 47.5 and 44.7 respectively.

The ranking comes at a time when President William Ruto’s administration is seeking to improve the healthcare system through the rollout of the Social Health Insurance Fund (SHIF).

Once fully implemented, Kenya will join an elite club dominated by developed nations which offer universal health coverage to its citizens.

@vaax I believe this list must be fake. No Ghana anywhere there.

4

Why is the ref biased? 😄

vankelvin:
wats the news?

It must be the Macky Sall Senegal election postponement news.

ProblemChild1:
Nigeria vs South Africa on Wednesday. Who do you think will win that day.

Nigeria should be able to win South Africa.

ProblemChild1:
I come dey wonder which one be gbabalada again 🤣🤣🤣 instead of gwagwalada

My guy say na the botanical name of the town be that oo. E nor dey gree for anybody.

Capeverde don finally go house. Party was fun while it lasted.

So eventually, many of those underdogs don finally go house.

Marjoribanks:
If I am SA with this type of keeper I would play 10 at the back and force you to penalties. Nobody is winning a penalty shoot out against SA.

We must win under 120 minutes or forget about it!

Lol. Just because of one match? Anyway you haven't answered my question on Ekong though 😄

Sportilitica:
Would rather play Cape Verde at the moment. That SA team looks solid

Solid? how? Capeverde had more chances.