CBN demanding the kind of transparency and probity it cannot provide itself. What irony.

This is the problem with government. Always complaining about challenges it is part and parcel of creating.

It claimed to have floated the naira yet it has no reasonable criteria for establishing the rate at which it presently trades foreign exchange. Setting an arbitrary figure and a rate outside reality that once again opens the door to corruption through round tripping.

And it is this insincerity that weakens it's market share of the forex market. For even a toddler or novice in foreign exchange matters know that rates vary by the millisecond in a fully deregulated market and the extent of liquidity of any market relates to access, transparency and security all three of which the CBN has never offered.

Their own foreign exchange is an instrument of corruption, provided only to their cronies and used as a political football.

Who will put his hard earned dollars in a bottomless, dark pit where he will not be able to get it back at a reasonable rate if not at all, or ever. The CBN should distance itself from government meddling, clean up it's act, gain respect and trust and act in a true free market manner and it will gain prime market share of the fx market where it has played the underdog since the 80's.

turmacs:
The speed at which our naira take dey weak day by day is directly proportional to rate of mental decline of ebolas.. anyways, it will not affect me in any way because my boyfriend is rich As I'm talking to you now, I already have 1TB of data on my router for the whole year, three gallons of 25litre fuel for my generator, MTN Lumos 6 months subscribtion as backup and refrigerator filled with food that five of me can not Finnish in three months....

Senior Lady

superemmy:
Why not ban bureau de change

You dey mind the idiots.

If you check very well, you will see that alot of them including CBN governor have agent they supply dollars in black market.

An Average black man is hopelessly greedy, and nothing good will ever genuinely come from his end. Sorry to say, Nigeria and Africa at large may remain underdeveloped till next two centuries.

Godstiger:
No,what weakens naira is poor national value and low standard

Say that again and again. This is at the core of everything. Nobody actually cares.

Incompetence of the highest order, looking for stuupid excuses for gross lack of performance. Assuming nigerians abroad don't send stipends to thier families, the naira would be very strong abi? Abi make Dem ban nigerians abroad from sending money home? Just like BINANCE too is weakning the naira.

fineboynl:
they do there are local money transfer agent all over Asia and Europe. They will credit ur account in naira and collect your foreign currency. Most of this money are sold to importers and all in perralle rates.

The growing population and technology age is the reason naira is on a free fall. We are nothing in terms of technology and every household has technology from tv to music to fridge to phone to AC Yet we don’t produce any and our population is fast growing.

You are making sense. Emefiele economics brought us here

jmoore:
Na you go tell people how to channel their money?


Tinubu, the master strategist. Emilokan.

It's now parallel lokan.


It's a big error if Nigeria will depend on remittance for FX.

Every country depends on remittances of FX for balance of payments. All foreign exchange a country earns is 'remitted' as long as that currency is not official legal tender in that country.

It comes from either trade or investment abroad, nothing more. There is no other way to 'have it'. As such diaspora remittances can be considered as private sector foreign investments returning capital or profits or royalties.

When a young man leaves the shores he leaves with naira changed to dollars as capital investment. He puts this money unto securing a job, vocation or business and after a while sends money back as remittances.

It will be fair to the government if he got the dollars from the CBN in the first place. But if he did not then the CBN should not expect a return through their channels.

If it expects to be only berth of fx inflows then it has to position itself as a real facilitator of diaspora trade, the only berth of fx outflows. It cannot have it's cake and eat it. It cannot be denying common citizens fx through their banks and expect the citizens to take their fx to the bank.

Same thing with subsidy
Government won't go after the wicked beneficiary but would rather inflict pains on all Nigerians

superemmy:
Why not ban bureau de change

Abi o bureau de change is so old school. Binance is the way forward

naturally!one of the so many evil deeds of emefiele!forget am for prison!him don kill so many people with him lousy policies!!

Lying and criminal CBN. Diaspora remittance in 2021 was 22 billion dollars, but we know it is double or more than double. How do I know?, I am one of the many Nigerians who remit this money week after week, month after month. In a year, when we earned a paltry $6 billion in oil revenue, diaspora remittances financed the country's budget.

Our remittances paid for nurses, doctors, teachers, and your criminal-thieving politicians, including the black SUVs they used to run you off the road. But what have they told you about us? They should not vote because they live outside the country. Their opinions don't count, we can't appoint them to give us their expertise. They are second-class Nigerians, but they are good enough to finance your existence.

But we know they are just afraid of us. They are in awe of those who have become enchanted, civilized, emancipated, and educated and have built economic capacity for themselves as they have, but as corrupt parasites.

The CBN must stop lying. They are the criminals who have been stealing from the rest of us. They are the people who have been fiddling with our foreign exchange earnings, round-tripping, etc. Not only that, they are complicit and co-responsible for today's turn of events.

Tinubu's ineptitude, open corruption, lack of emotional intelligence, and integrity are the second factor. I am currently telling people directly under my influence to stop or drastically reduce their remittances to this fraudulent economy. The sanctions Nigeria connived with Ecowas to impose on Niger are now directly depressing the naira. The decline in our trade volume has a direct impact on our currency. Tinubu and his handlers missed this otherwise obvious macro effect.

I am not willing to continue funding these criminal politicians, including the idi0ts who are paid from our funds, to insult their fellow long-suffering citizens here in Nairaland daily. I know that won't change much or anything, but this is the least we can do. Docile Nigerians need to feel the pain of their docility. They need a catalyst to wake them up from their slumber and hopefully begin to hold those who have ruined their lives accountable.

I laugh at these hungry and depraved idi0ts who have been unleashed on Nigerians as attack dogs, talking to anyone who expresses an opinion contrary to their programmed narrative. You m0rons are as many victims as the people you connive with, your slave masters who feed you crumbs to insult and misinform.

I am ashamed of you. I am ashamed of you because you definitely do not believe in the contract you are executing. Your conscience is for sale, for a pittance. Those of us who fight for what is right for this country and her citizens do so without compensation of any kind or any expectation thereof, except good governance and the wellbeing of all of her people.

We are happy to commit ourselves daily, spending our time and resources to do so. We are driven by the love of country, not by whomever you call a “principal”.

And, I've got bad news for you. While you are spending the now orphaned naira, some of us, including yours truly, are earning and spending dollars and euros daily. Currencies that some of you would readily kill for, and a lot of it. Yet we fight for you.

Nigerians are now committing suicide daily. A phenomenon that was rare or even foreign to this country before now. Desperation and hopelessness have become the order of the day in the land, yet your depleted consciences would not flinch. And for what reason exactly?. Are you really that lazy to take care of yourselves?.

What a weak excuse! The exchange rate is a function of supply and demand for forex. Whether diaspora remittances goes to the official or black market is immaterial.

superemmy:
Why not ban bureau de change

Because you can't. Not even Abacha could have done it even as he fixed the dollar at N22 throughout his reign. They'll close the shops but trading will continue unabated.

What I don't get is why the CBN pretended to remove restrictions on dollar trading without going the whole hog. If you unified the market, there would be no black market to divert anything to because banks and the BDCs would be trading at nearly the same rate. But by maintaining a list of prohibited items and continuing to treat BDCs like pariahs, the disparity reemerged and here we are. Who gathers ant-infested maggots and complains there's maggots? What kind of CBN governor is this?

wirinet:

False premise! Why? Because we are basically import (in order words dollar) dependent for basic products - energy (fuels), food (rice, dairy, fish, flour and flour products), clothes (fabrics, materials and accessories), electronics (including phones, TVs, etc.), building materials (tiles, glass, aluminium, cables, etc). And our main means of earning this dollar is crude oil exports.

arm chair economist welcome, pls bring your chair let me school you, Nigeria is not the only import dependent nation in the world, Saudi import almost everything they use, even water, their only source of revenue is oil and Hajj, Infact 2/3 of Nations in the world are on import export deficit with USA, China and other European countries, you don't hear their currency tumbling like ours us doing right now, having two rates in the economy is profiteering some people who have access to the official rate, until CBN stops selling dollars to just banks and BDCs or any I&E window.. This thing will continue, abolish the I&E windows, sell and buy at aboki rates, they will go out of business just like the black market and smugglers of Petrol has gone out of business now.. It's very simple, until that is done we won't see the end to the fall of Naira. It's simple h as ABC.

It's still boils down on CBN regulations and supervisory roles.
CBN has failed Nigerians.

jmoore:
Na you go tell people how to channel their money?


Tinubu, the master strategist. Emilokan.

It's now parallel lokan.


It's a big error if Nigeria will depend on remittance for FX.

from consumption to more consumption,Nigeria is not a productive country,we have Africa as a big market to supply but sadly we cannot

Nonsense

wirinet:

My brother the paradox is shocking. The CBN says they have floated the Naira, meaning they want the laws of demand and supply to determine the value of the Naira, but is now complaining about how and where people choose to change their currencies.
Does that even make sense?

Exactly. Makes no sense. You "float the naira", but continue to maintain a list of prohibited items, while keeping your own dollars away from BDCs. Then you're surprised that a gap between "official window" and "parallel market" has reemerged. Has to be ment.

masseratti:
arm chair economist welcome, it's bring your chair let me school you, Nigeria is not the only import dependent nation in the world, Saudi import almost everything they use, even water, their only source of revenue is oil and Hajj, Infact 2/3 of Nations in the world are on import export deficit with USA, China and other European countries, you don't hear their currency tumbling like ours us doing right now, having two rates in the economy is profiteering some people who have access to the official rate, until CBN stops selling dollars to just banks and ND or any I&E window.. This thing will continue, abolish the I&E windows, sell and buy at aboki rates, they will go out of business just like the black market and smugglers of Petrol has gone out of business now.. It's very simple, until that is done we won't see the end to the fall of Naira

Yaay! Reading through the entire thread has paid off. Finally, someone gets it!

Yoruba people are now eyeing diaspora money to dip their kleptomaniac fingers into.

They hate to see they poor breath, suffocating the poor is too much fun to the zombie like druggie.

BoldBrainz:
Shonubi has been talking nonsense for about a week now!!

To the best of my knowledge, there is no medium of remittance from the Diaspora that is outside the various operating windows run by banks and financial institutions.

There's no way you can lay hands on dollars sent to you from a sibling abroad, if you don't walk into a banking hall. All the flutterwave, Remitta, etc.., run transactions across borders, yes. But they basically deal with numbers, where you stand to receive alerts into your Nigerian accounts or domiciliary accounts, as the case may be. But there is no channel that hands over paper currency to an individual as proceeds from diaspora remittance, if not banks and other money houses.

So what's this load of garbage this clown is vomitting?!

my brother maybe they are sending the dollar through DHL. Lol

Fools! Open the boarders and make it compulsory to trade across the boarder in naira

turmacs:
The speed at which our naira take dey weak day by day is directly proportional to rate of mental decline of ebolas.. anyways, it will not affect me in any way because my boyfriend is rich As I'm talking to you now, I already have 1TB of data on my router for the whole year, three gallons of 25litre fuel for my generator, MTN Lumos 6 months subscribtion as backup and refrigerator filled with food that five of me can not Finnish in three months....

Audio bf

See learner....

Na CBN u use learn this work

People don't use the banks due to the fact that that these banks rarely reciprocate, as in youbcan't get dollars from them. I thought that was obvious

It's about time they release Emefiele ask him for forgiveness and then beg him to help them with his experience. The guy there right now has no clue

If supply outstrips the demand, the exchange rate will fall. The high rate simply shows that we don't have enough in the system. You keep your dollars in the bank, you go to retrieve it, the next thing they tell you they don't have and you should come back. That discourages people who keep dollars at home and patronise black market where they can get good price for the ones they have. Let CBN flood market with dollars and see if the exchange rate won't crash.

nlfpmod:


https://www.thecable.ng/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn/amp

This is foolishness. 70% of our demand for dollars comes from buying petroleum products which we should be exporting. Buhari was president and petroleum minister for 8 good year's n none of the refineries worked! Even the hastily commission Dangote refinery is not ready.

Add the endemic corruption of the ruling class, poverty of leadership plus borrowing for consumption, you'll get a clear picture of who is responsible for the weak naira.

What do you expect when CBN gave Nigerians the option to cash out dollars from remittance directly? You think they cash out and take to the banks for conversion to naira or spend the dollars locally? That's the result of poor design thinking. With this I suspect they would soon suspend dollar cashout from remittance and clamp down on those remittance apps.

nlfpmod:


https://www.thecable.ng/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn/amp

nlfpmod:


https://www.thecable.ng/diversion-of-diaspora-remittances-to-parallel-market-weakens-naira-says-cbn/amp

It is due to Forex restrictions on certain items and poor cashless policy.

This is what happens when an Engineer is acting in the capacity of CBN Governor. Poor economic analysis due to poor judgment and incompetence.The naira is depreciating because Nigeria has borrowed so much money from external sources who have insisted on the currency devaluation.The naira is depreciating because the economy is largely a consuming and not a producing economy.The naira is falling because crude oil refinery has been left in the hands of private sector and other forces.Call a spade a spade!!

Ok so this is how it should have worked.

CBN licensed some companies as international money transfer operators (IMTO) with the likes of Western Union, Moneygram and Flutterwave etc as one of such operators.

These operators are mandated to facilitate remittances from the diaspora into Nigeria with the Nigerian banks as their support. The banks are meant to buy up the dollars from these operators at a rate set by CBN (which for now is the I&E window rate floated).

The relationship is such that the IMTO would fund the foreign accounts of these banks via CBN's JP Morgan account abroad. And the CBN in turn would make available to the Nigerian banks locally the dollars.

But this hasn't been the case as we now have operators who facilitate inbound and outbound remittances using p2p channels meaning the banks have been sidelined in the scheme of things. The visibility of the banks you are still seeing is the paying out of Naira to the beneficiaries bank account from the pool of naira created by Nigerians looking for dollars to buy and settle transactions abroad.

Because of the monopolistic but liberal manner these platforms operate, demand is high but supply is now dictated by senders who also dictate the rates they want in exchange. This has now given rise to the exchange rate locally at the parallel market through which they operate.

For this issue so be resolved, CBN needs to be liberal with how forex can be accessed through the banks for outbound payments else many would shun the current system for the costly parallel market system. Form A or M for instance are too bureaucratic with costly delays in meeting demands.

These parallel market operators of the international remittances are also indirectly being pre-funded by multinational companies with their profits or investments trapped in Nigeria. Until those are settled it's going to be difficult getting the true benefits of the floated naira.

Another thing the CBN would've looked towards is cryptocurrency exchanges. Allow Nigerians to unabatedly have access to it as an option to access dollars via stable coins and that would ease the strain on their reserves.

BoldBrainz:
Shonubi has been talking nonsense for about a week now!!

To the best of my knowledge, there is no medium of remittance from the Diaspora that is outside the various operating windows run by banks and financial institutions.

There's no way you can lay hands on dollars sent to you from a sibling abroad, if you don't walk into a banking hall. All the flutterwave, Remitta, etc.., run transactions across borders, yes. But they basically deal with numbers, where you stand to receive alerts into your Nigerian accounts or domiciliary accounts, as the case may be. But there is no channel that hands over paper currency to an individual as proceeds from diaspora remittance, if not banks and other money houses.

So what's this load of garbage this clown is vomitting?!