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

Femmyfamous4u:


Yes, you won't have money to take to Bureau De Change.

GeneralDae:

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).

EmperorCaesar:


I've read many of your opinions on issues regarding this fall of Naira and going as far back as the last 5pages of your comments, it's always filled with criticism and no valuable suggestions

The Good news is that your opinion ends here

forgiveness:



Kill which economy? Is it the same economy not in comatose already because of those saboteurs buying dollars from BDCs and stocking it in their domiciliary accounts with the expectation of naira fall to gain more naira?

When the naira depreciate, they withdrawal the dollars in their account. Rush back to BDCs and change it into naira and deposit the gain in naira account. Then use the capital to buy more dollars and keep in the bank. I am talking about buying dollars in millions with millions and billions of naira. This creates scarcity and we know the rules of economics. The higher the demand the higher the price.

The schools are the ones desperate for Nigerian students. They will comply

If you need dollars, you can change the naira at the airport of your destination or use your card. Nigerian banks there will pay the processing fee.

I doubt you are aware of that.

Nobody should be given dollar in Nigeria. If you like knack your head for floor. All of you crying it will kill the economy are benefactors and saboteurs. Enemies of the state.

ivolt:

Not even Cardoso has made this claim.
Outside of Aboki's dealing in dollars and occasional online shoppers.
Nobody goes to banks to deposit dollars.
It is even worse right now, since withdrawal and transfers have been banned.
The "saboteur" are the ones who imported the phone, cars, electronics and every other
foreign manufactured items in your house.


What you
This is quite entertaining.
Yes, speculators exist

So, you are dead wrong by insinuating turning dollar to naira in the domiciliary account will kill economy. It will rather reduce pressure on naira because you will not be given dollars. It does not stop you from making electronic transfer to pay in dollars outside the country.

If you want to pay foreign school fees, go to your bank and process the money which is in naira to pay in dollars online through the Nigerian bank straight the foreign bank in abroad. Fortunately, we have many Nigerian banks in U.K and other countries.


Nope.
The schools aren't desperate.
They are not the one lying about proof of funds.
So, if a school say the US accepts your Naira, what will it do with it?


So, the changers at the airport of your destination will collect your super Naira and give you dollars for what reason?


Aware of what exactly.
You think there is any entity out there who needs your Naira apart from Nigerians.
If anybody agrees to swap any currency for Naira, it either has a way of investing the Naira
back into Nigeria or has a means of converting it for profit.

So, a traveler from the US came to Nigeria and changed its dollars at the airport but when going
back you insist they go back with Naira so that they can exchange it magically in their native country .
You see how ridiculous you sound. Perhaps other countries are desperate for Naira, they are going
to starve if they stay away from Nigeria or Nigeria sanctions them.


I replied you because you are so ignorant that is nauseating and some people might actually think
you know what you are talking about.
At this age, only a financially illiterate person will be looking to be given dollars like some beggars looking for alms.
You see, banks don't drive bullion vans to people's home to give them dollars because they ask.

Here is how the market works.
In the Buhari era were some items were banned. You simply apply for the dollars you need
if you have legitimate needs e.g traveling. It could take weeks or months.
And for the major consumer of dollars, the importers, they are not given dollar cash as you imagined.

It is even easier these days because the CBN no longer keeps a banned item list.

Now, go back and read the fantasy you put up there and try to reason how it will solve the dollar deficit issues.

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.

forgiveness:


The fact you claim NOBODY deposit dollars into DOMICILIARY ACCOUNT has rendered your gibberish write up as your personal insinuation.

Who told you? Where did you get the statistics from that nobody deposit money into domiciliary accounts?

I deposited money into domiciliary account because I wanted to spend it abroad last year.

I still know many people still with domiciliary accounts.

Besides, the CBN reports of 30b dollars domiciled in domiciliary account has rendered your submission falsehood. You lied big time.

Who are the saboteurs? Electronic importers? Other foreign importers? Another goofy statement.

I imported cars last year and I can tell you, it's not profitable because by the time the goods lands in Nigeria after 3 months (depending on the country), the exchange rates has gone up.

Something you bought 2k dollars let say equivalent of 2m at the rate of 100naira to a dollar, but you have to raise 3m to buy 2k dollars for the same car you want to sell at the rate of 1500 to a dollar. If you add clearance, shipping, profit, how much do you want to sell the car fast?

Where is money to buy cars 8m car in this Nigeria?

Mr man, keep shut. Electronic, cars, phones, foreign goods importers are crying because they are lossing money. You're just a paper economic. You don't have any idea.

So, these are not the saboteurs but the ones who deliberately opened domiciliary account, buy dollars, kerp in the account and when dollar appreciates, run to BDCs to change into naira then buy dollars again and save in the account. These are saboteurs. Enemies of the state. They don't want to work but make fast money.

Nobody said school should accept naira. You're too slow to understand.

If you want to pay school fees, go to your bank and provide justification for the dollars, then provide the bank account of the beneficiary. The bank will wire the money directly to the foreign bank account and you get your receipt. Sefini.

If you need cash, get an atm. The bank will convert your naira to dollars and then you can use your atm to do any transactions in the world.

This is what people use to buy goods abroad. You're also oblivious to this. Mean, you no know anything. Na only mouth you get.

forgiveness:


You must declare the amount of money with you at the border. If you don't declare but found with currency, it shall be seized then you ho to jail for 3 months. If tjis is enforced, nobody dares to usurp the law.

Jeans601:


Bro stop wasting your time explaining anything to that kid abeg.

He is even so slow to understand wire transfer.

lebienconnu:


This will work if properly enforced but my fear is that it can’t or won’t. I can make a trip to Benin republic to collect 3k dollars everyday. Of course, I will declare it.

Sunijacks:
Will this policy help the naira?

Sunijacks:
Will this policy help the naira?

emerged01:

It only help Nigerians to do right thing. Policies like compelling govt officials to buy Innosson or nord instead of foreign products,banning them from travelling abroad for medicals will help naira but this one is just scratching the surface of our problem.

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.

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!

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.

forgiveness:


The government is not stopping you from earning in dollars but your dollar must be changed to naira if you want to collect cash because naira is the official currency for trade.

I now realize that many of this people are enemies of the state. They are really enjoying the economy fail but still criticizing the government. What hypocrites!!

Obinoscopy:
The government is just attacking the symptoms and not the disease. If the forex was not influenced by the government and if the naira is truly on free float, people will see no need to patronize the black market because the banks are giving the true rate of the dollar.

Imagine if you were a tenant and your landlord sells bottle water for 500 naira however an aboki outside sells the same bottle water for 100 naira. Will you say because you are a good tenant you will not patronize the aboki?

You can't force someone who works hard and earns some dollars (who is your "tenant" using my analogy) to buy your "bottle water" which is to convert the dollar to naira using the banks rate when he knows he can get a better rate with an aboki. That "tenant" will leave your country and it will affect your economy.

Free float is the way to go. However before you do a free float, make sure the country is a net exporter of goods and services.

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.

forgiveness:


In a sane society, aboki and those patronizing then should be jailed. It's illegal.

lusim:


You don't know how forex move, this will eliminate dollar scarcity as you suppose to put because cbn reserves will increase.

The process is simple,
If your foreign client pay you with usd, usd goes to the central reserve but the value is released to you in naira.

Before when most people get this usd direct, they hold it, study the market forces and sell at a good rate. This is what they want to stop.

Like most people are guilty of this.

Sunijacks:
Will this policy help the naira?

commoditiesnig:

Yes it will

Nickelodeon93:
how please

GeneralDae:

I don't know if it would help the naira but what I'm sure of is that if maintained for some time, it would reduce fast depreciation or appreciation of the naira. That is to say it would ensure three things:

a) Reduction of the power of the black market and closing of the gap between rates

b) Stability of naira

c) Liquidity in the official market.

Nickelodeon93:




Interesting… well let’s be going… right now what Nigeria needs is more production/exportation.. not a drug dealer who knows only how to broaden the tax net