bigtt76:
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.

This is impressively detailed, and I appreciate the effort you committed into putting these words down.

However, just out of curiosity, can you kindly help inundate me with at least two of those operational platforms facilitating the P2P diaspora remittances that are effectively sidelining the banks and licensed financial houses?

They should cancel the Naira, we should be spending the dollar.

There are many out there like Remitly, OhentPay etc... Just do a search and you will see them.

BoldBrainz:


This is impressively detailed, and I appreciate the effort you committed into putting these words down.

However, just out of curiosity, can you kindly help inundate me with at least two of those operational platforms facilitating the P2P diaspora remittances that are effectively sidelining the banks and licensed financial houses?

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....

Let me see your punana shout Halleluya!

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....

We raised alarm when an Engineer was appointed CBN governor, just because of tribalism. Now the economy is on a free fall like a bridge built by quack engineers!

Lies. Stupid excuse

clockwisereport:
Rubbish

Meanwhile, congrats to Aka Eze Aka on his appointment as the commissioner of Information, Enugu state

Well deserved


Man's legend

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....

All will eventually finish...dey play

I hereby apply to be your gym instructor and relationship coach. You and your rich boyfriend, he'll marry you after I finish work....

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....

Super story don start....

Birikiti:
The explanation don pass the work!

When you were floating the naira, didn't you consider all scenarios and put contingency plans in place?

If you can't do the work, please leave the post!

Why not first condemned the old system and demand an improvement on the present one?

Until a new minister of finance has been appointed and a very competent head as well for the CBN as well, things will remain shaky! There's still possibility of the Naira strengthening in value.

There was a time in 2017 when the Naira had dropped to 520 to a dollar and rebounded to 365 where it stood for about 3 years. So, not all hope is lost.

Another incompetent SADWASTE fast CBN governor....na so so excuse this OLODO just dey give since him enter office ..just dey play blame games since...I thought the druggie and his followers said he was the best for the job...las las emefiele would be a better option than these OLODO of SADWASTE

nlfpmod:


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

Another incompetent SADWASTE as CBN governor....na so so excuse this OLODO just dey give since him enter office ..just dey play blame games since...I thought the druggie and his followers said he was the best for the job...las las emefiele would be a better option than these OLODO of SADWASTE

nlfpmod:


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

Ban bureau de change.

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....

What an achievement!

wittywriter:
Useless excuses.

N.B
For you not to have a means you earn in dollars or Euros or pounds as a Nigerian internet user that spends hours online as a Nigerian then sorry...
Shoutout to fellow freelancers and online earners!!!

Yeah you can get a paid mentorship....in 3 weeks you would be earning.
There are many ways but two basic ways I earn is with my skill and online investment using sales funnels.
You too can.....if u want mentorship it can be arranged for a fee.



Wittyness

Is it e-mail copy writing n freelancing?

Reference:
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.

i tire ooo.. This folks at CBN just like Nnpc folks thinks we all are fools, why float the naira and still have a so called I&E window, the CBN should hands off dollar trading.. Let the IOCs the largest dollars earners in the country sell directly to banks at Aboki rates... Everything will stabilize immediately, the demand on dollars will go down by nothing less than 40%. Right now it's still like subsidy some people are profiteering from round tripping.

wittywriter:
Useless excuses.

N.B
For you not to have a means you earn in dollars or Euros or pounds as a Nigerian internet user that spends hours online as a Nigerian then sorry...
Shoutout to fellow freelancers and online earners!!!

Yeah you can get a paid mentorship....in 3 weeks you would be earning.
There are many ways but two basic ways I earn is with my skill and online investment using sales funnels.
You too can.....if u want mentorship it can be arranged for a fee.


Even if it's this DS u have interest in be rest assured of earning with it after mentorship this is because what we offer is actually about earning with the skill(s) learnt unlike others that will just train. Earning online is beyond just learning/having a skill...you will be mentored on how and where u can earn online. Drop your digits if you want to be part of the many freelance earners.


Wittyness

0706@36@05@37

wittywriter:
Useless excuses.

N.B
For you not to have a means you earn in dollars or Euros or pounds as a Nigerian internet user that spends hours online as a Nigerian then sorry...
Shoutout to fellow freelancers and online earners!!!

Yeah you can get a paid mentorship....in 3 weeks you would be earning.
There are many ways but two basic ways I earn is with my skill and online investment using sales funnels.
You too can.....if u want mentorship it can be arranged for a fee.


Even if it's this DS u have interest in be rest assured of earning with it after mentorship this is because what we offer is actually about earning with the skill(s) learnt unlike others that will just train. Earning online is beyond just learning/having a skill...you will be mentored on how and where u can earn online. Drop your digits if you want to be part of the many freelance earners.


Incomplete...

Wittyness

Sorry o!07063605637

Important info for all to read!!!

“We can’t do without diaspora remittances. For many countries, that’s their main source of income.” - Fola Shonubi, CBN Governor.

Good to see an official admission of what everyone knows. Diaspora remittances is the main factor sustaining the Nigerian economy. It's bigger than the budget of the Federal Government and also has greater spread.

The ONLY solution to the forex crisis is a COMPLETE float of the naira. Abolish ALL forex controls. Remove the Federal Government from the market, let Nigerian exporters sell their forex at whatever price they want to whomsoever they want. It has been done with fuel, it can be done with forex. The economy will adjust over time and become more productive as importation becomes more expensive.

Good Luck to Nigeria.

masseratti:
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.

Followed your posts. Kudos for your intelligent list of submissions. However, I have a question. Your proposal/theory seems to have a weakness. Just like the subsidy removal has led to sustained inflation and hike in fuel price, the abolishing of I & E window and uniform price of dollar will like likely cause increase in its price. This is because people with the dollars will hoard it and manage to still control the price. And Nigerians, being who we are, will scramble for the $ currency, ensuring even more scarcity, thus driving up more inflation per se. It may even reach 1k quicker.

You have a diverse say?

haybhi1:


Followed your posts. Kudos for your intelligent list of submissions. However, I have a question. Your proposal/theory seems to have a weakness. Just like the subsidy removal has led to sustained inflation and hike in fuel price, the abolishing of I & E window and uniform price of dollar will like likely cause increase in its price. This is because people with the dollars will hoard it and manage to still control the price. And Nigerians, being who we are, will scramble for the $ currency, ensuring even more scarcity, thus driving up more inflation per se. It may even reach 1k quicker.

You have a diverse say?

good morning.. Am honored by your words.
Now to your question, one of the best way has scientist is to try out different type of experiment till you get it right, dollars is not a legal tender in the country, just like we had hoarders and black marketers with smugglers in petrol.. People who had no business holding on to the dollars won't hold on to it because by then it will be of no profit holding on to it for them.
The I & E window currently has it is will be subject to abuse, they is no way of stopping that. The subsidy removal didn't cause inflation on its own. Our people in Government or in CBN refused to learn from history, what was the cause of subsidy in the first place?àb initio.. It was the fall of naira to the dollars and lack of working refinery, now we have the Dangote refinery coming up, why is our refinery not working.. It's simple Govt has no business doing business, it's better the 3 refinery is sold off and let the IOCs manage them, Govt can only regulate and make sure there is no monopoly.. Just like in the telecom industry, also subsidy was implemented to have a uniform price of fuel all over the country, but now we have realized that it's not possible to do that, the cost of transportation will be bear by how far from the location of production.
If the CBN or IOCs, Banks buys $ at the rate aboki also buys do you think anyone will waste his or her time to patronize an aboki on the road? No.. They will go out of business it's as simple as that, they claim we use to do 40m barrels per day during subsidy.. Now we hardly do 25 m per day.

masseratti:
good morning.. Am honored by your words.
Now to your question, one of the best way has scientist is to try out different type of experiment till you get it right, dollars is not a legal tender in the country, just like we had hoarders and black marketers with smugglers in petrol.. People who had no business holding on to the dollars won't hold on to it because by then it will be of no profit holding on to it for them.
The I & E window currently has it is will be subject to abuse, they is no way of stopping that. The subsidy removal didn't cause inflation on its own. Our people in Government or in CBN refused to learn from history, what was the cause of subsidy in the first place?àb initio.. It was the fall of naira to the dollars and lack of working refinery, now we have the Dangote refinery coming up, why is our refinery not working.. It's simple Govt has no business doing business, it's better the 3 refinery is sold off and let the IOCs manage them, Govt can only regulate and make sure there is no monopoly.. Just like in the telecom industry, also subsidy was implemented to have a uniform price of fuel all over the country, but now we have realized that it's not possible to do that, the cost of transportation will be bear by how far from the location of production.
If the CBN or IOCs, Banks buys $ at the rate aboki also buys do you think anyone will waste his or her time to patronize an aboki on the road? No.. They will go out of business it's has simple has that, they claim we use to do 40m barrels per day during subsidy.. Now we hardly do 25 m per day.

There's enough justice here. Thanks. I appreciate your brilliance.

haybhi1:


There's enough justice here. Thanks. I appreciate your brilliance.

thank you very much I appreciate you.. God bless.

nlfpmod:


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

The Central Bank of Nigeria (CBN) has attributed the free fall of the naira against the dollar to the diversion of diaspora remittances to the parallel market.

Folashodun Shonubi, CBN acting governor, spoke while delivering a lecture titled ‘Diaspora Remittances and Nigeria Economic Development’ at the National Institute for Security Studies in Abuja.

TheCable had reported that the naira tumbled to an all-time low of N950/$ at the parallel/black market on Thursday — two months after the currency’s float.

Meanwhile, at the investors and exporters (I&E) window, the naira appreciated slightly by 0.13 percent to close at N781.34/$.


Speaking at the event, Shonubi said a lot of diaspora remittances arrived in Nigeria in dollars and end up in the parallel market without being officially documented.

“With those remittances, the dollars have come in, we know the dollars have come in but we don’t see them in the official system. So, they must be going somewhere and somewhere,” Shonubi said.

“And the challenge with the black market, unofficial market or parallel market or whatever name you want to call it, it is not regulated, and it becomes an easy place to have criminal activities.

“We investigate bankers, not just bankers, anybody who has committed an offense, the first thing they want to do is to run to the black markets, change it to the dollars because it is less money to carry around.

“Some of the funding in the black markets are actually from diaspora remittances. That’s why it important we need to know a lot of what’s going on there.


“We can’t play the sentiment game. If we don’t understand the dynamics, we usually go with the literature which does not necessarily work for us.”

Shonubi said the amount of inflows coming through many unapproved channels and eventually ending up in the parallel market contributed significantly to Nigeria’s foreign exchange (FX) crisis.

He said that implementing measures within the country to manage illicit remittances and detect these channels would be beneficial.

This, he said, would ensure remittance flows into the proper channels, and harness maximum benefits to grow the economy.

“We talk about black markets, which also create their own problems. Management of the foreign exchange market and the efficacy of our policies to manage the exchange rate becomes difficult due to the insignificance of our diaspora remittances which are going to other markets,” the CBN boss said.

“Today, someone called me privately and said that this thing (naira) has gone up to some levels in the black markets, my question was, what do you want me to do? Do I operate in the black markets? I don’t know the basis of pricing in the black markets.

“The other thing people don’t realise is that, because you don’t have full information, and I will give you an example since we started the I&E window. We found out that some people would deliberately wait until the last minute and do one transaction of $5,000 and that becomes the closing rate.

“We can’t do without diaspora remittances. For many countries, that’s their main source of income.”