It's simple.

This will most likely serve to lower Investors confidence.

SoNature:
Yemi Cardoso dey vex; he's trying all the tricks in the book to prove that his isn't a patchy-patchy qualification

If NNPC had been a serious state-run oil corporation, Nigeria would have sent many IOCs back to their countries and kept all the USD here.

Unfortunately Nigeria is a corrupt entity that is beyond salvation

Since the local currency naira / USD RATE has been floated, why can’t the banks exchange naira at parallel market rates?

I wish I can go to my banking app and fund my dormicilliary account from My naira account at parallel market rates. Some sort of e-dollar ( not cash dollar). And if I need to withdraw same, bank will pay the equivalent in Naira at prevailing rate. This could take some pressure off the chase for cash Dollar.

Funds (e-dollar) in the dormicilliary account can be transferred to oversea account if necessary for companies, business and individuals (max USD10k per week or a fortnight for personal account). Travelers can request USD or Euro dominated ATM card.

Many forex companies do this on App but they can not remit funds overseas. But the local banks are just too slow to innovative banking.

It takes bank about 48hours or more to credit an oversea account through SWIFT, but small private firms in Lagos can credit a Chinese / Hongkong account in less than 5mins of receipt of Naira payment.

Our banks are just not up to it.

Now you’re talking

You’re getting to the root of the matter

That’s why local partners are important so the profits stay at home

Smartguyboy:
Non of his policies have worked the naira keep falling soon it will reach 2000 all because you want your tribeman to be there .

Ur own tribeman that was thr last time, how did he end?

Printed naira anyhow

Forged president's signature.

Stole billions of dollars.

Mr tribeman, u re free to add ur own

Good move, all these things companies do here in terms of remittances, they can't do it in UK or America.

Let's start selling our crude and gas in Naira, this will strengthen naira, when people start demanding it to make payments in international trade.

Falana gave this advice and it makes sense.

KayyDee:
It's simple.

This will most likely serve to lower Investors confidence.

The situation Nigeria is in now can lead to uprising or total grounding of our economy.

If Nigeria goes into a comatose and people can not demand anymore, our bouyant market dies, this will definitely make investors run, no serious investor will leave because of policy on remittances, they will only leave when the market is no more here, or when there is insecurity and uprisings triggered by high costs of living due to dollar scarcity.

How does foreign investors benefit you directly?
But dollar rate increases has led to hyper cost pull inflation, affecting every single Nigeria negatively.

Are you in favor of the overpricing of the dollar?

Nigerians if you don't have something useful to say shut up, you people are sounding like enemies of your own country. Let the investors complain, not you. CBN is doing this to reduce dollar scarcity...make una get sense o, stop supporting nonsense.

Faiththatworks:
This is a very good move by the CBN, anything to retain some foreign exchange in Nigeria is a welcome development.
I even expect the CBN to go a step further and mandate all these IOC to retain at least 10-20% of the foreign earnings in Nigeria.
Although the NNPCL is supposed to retain Nigeria's share of the earning,but we all know most of the funds is paid into the Consolidated fund and shared by FAAC,and some remitted to our foreign reserve.
Il believe the CBN should go the whole hog and make the law,the continued milking of Our resources to cater for some foreigners must stop.
I want to use this opportunity to applaud Nigerians on Nairaland who have continued to use these hard times to proffer great solutions to the Government.
I keep repeating it, Nairaland should be the bastion of intellectual discourse online.
I'm very happy for all those who keep giving suggestions despite the hardship,I read of the person who gave suggestions on a thread some day ago on the BTA some days ago and now Government implemented some of his suggestions.
I will continue to advocate for Nairalanders to keep making useful suggestions to Government,don't ever feel your advice is not seen,I'm sure someone somewhere will read it.
We will not allow the hardship blunt our thoughts,this is time to come together to overcome this hardship with suggestions and ideas.
God bless Nigeria

We must get it right

Can CBN allow us to make dollar transactions with naira card like before!!?. At least. That will reduce pressure on dollars to run international affairs. I still remember using my naira card to purchase goods on Alibaba in the past and they remove the dollar equivalent. Why was it stop!?? An economist in the house should explain this

mcbreeze:
Guessing work.
FG should work on our export. All this will stop

you can't even speak elementary English and you want to tell government about economics. Dumb ass

taiwolomo1:
Can CBN allow us to make dollar transactions with naira card like before!!?. At least. That will reduce pressure on dollars to run international affairs. I still remember using my naira card to purchase goods on Alibaba in the past and they remove the dollar equivalent. Why was it stop!?? An economist in the house should explain this

The damage CBN and emefiele did to Nigerians should be documented in the Guinness book of records.

Everything was tailored towards impoverishing Nigerians.

AliExpress, Amazon etc will list their items in naira and we need to get dollars to pay because of CBN.

The naira was assassinated at CBN

mcbreeze:
Guessing work.
FG should work on our export. All this will stop

Are we not the largest exporter of churches in the world?
Does that stopped anything?

What else can we export if not corruption and Wickedness?
Unfortunately, no one is willing to buy from Nigeria

Fiscus105:
This what you guys supposed to have been doing long before now, but Nigeria with fire brigade approach.


In America and other advance nations, they allow you to operate and possibly making billion of dollars profit in their territory but, only tiny of such money would be allowed you to move away from their territory.

With this, even wen u make so much money which is personal to u, the Money will not leave the land, hence others would continue benefiting from it, by way of loan or other areas.

TODAY, ELON MUSK IS HAVING 100THS OF BILLIONS DOLLARS IN AMERICA BANKS BUT HE CAN ONLY ENJOY IF LARGELY IN AMERICA AND ALLOWED TO MOVE THEM TO SOUTH AFRICA HIS ORIGIN, EVEN IF THEY NEED DOLLARS IN THEIR ECONOMY.

That’s not entirely true. What if I make billions in USA and decide to diversify my portfolio by investing in other countries say, Nigeria, won’t the USA allow me? The major reason why most foreign firms operating in USA are not repatriating all their profits is that USA still has the market, so they stand to make more profit by reinvesting in the country than repatriating all the profits.

SoNature:
Yemi Cardoso dey vex; he's trying all the tricks in the book to prove that his isn't a patchy-patchy qualification If NNPC had been a serious state-run oil corporation, Nigeria would have sent many IOCs back to their countries and kept all the USD here.

In the other news, I thought that with all these CBN policies flying up and down banks would stop Nigerians who have dorm accounts from accessing their hard-earned USD. I was happy when I went to bank yesterday and withdrew some real cash in USD

the money in your dorm iaccount in already in Nigeria, shy woukd cbn stop dorm account in the middle of fx crisis?


Those campaigning against dorm are either stupid or ignorant of how it works.

gaby:
Make una continue una madness.

The Indian investors are coming with the $14T investment they can't repatriate profits from.

What investor are you inviting with this sort of nonsense policy?

Confused Dullards.

You just dey post rubbish up and down

The truth is that APC through Buhari killed the country and even though same APC through Tinubu is trying to revive the country through trial and error approach, they are actually burying what’s remaining of the country. The first thing to do to revive the country is to make food cheap and affordable for the common man and how can than that be done, open the ports and allow foods to come in. Importers of food don’t necessarily need fx from CBN, this are men doing all kinds of things abroad so, they don’t need fx from CBN. The truth is that we can’t produce the food we need and closing the border won’t solve the problem rather, it will cause more hardship for the masses which will end up creating social unrest.

SoNature:

Source: https://nairametrics.com/2024/02/15/cbn-stops-international-oil-companies-from-remitting-100-of-forex-proceeds-abroad/

Good move

We wanted to copy China by closing our border but failed to copy the approach China use, which is providing all then necessary infrastructure and resources needed for industrialization first like adequate power supply, security of life and properties, Human Resources through technical education, zero tolerance and very hash punishment for corruption, etc. But in Nigeria, the case is different, we are just deceiving ourselves with big grammars and eye service.

SoNature:
Yemi Cardoso dey vex; he's trying all the tricks in the book to prove that his isn't a patchy-patchy qualification If NNPC had been a serious state-run oil corporation, Nigeria would have sent many IOCs back to their countries and kept all the USD here.

In the other news, I thought that with all these CBN policies flying up and down banks would stop Nigerians who have dorm accounts from accessing their hard-earned USD. I was happy when I went to bank yesterday and withdrew some real cash in USD

spending.... I'm happy for you

Corruption by government officials is the number one cause of the current problem.
How can a government borrow billions of dollars without accounting for it. How for god's sake ?

SoNature:
Yemi Cardoso dey vex; he's trying all the tricks in the book to prove that his isn't a patchy-patchy qualification If NNPC had been a serious state-run oil corporation, Nigeria would have sent many IOCs back to their countries and kept all the USD here.

In the other news, I thought that with all these CBN policies flying up and down banks would stop Nigerians who have dorm accounts from accessing their hard-earned USD. I was happy when I went to bank yesterday and withdrew some real cash in USD

I thought they gave an order. This is really sad.

mcbreeze:
Guessing work.
FG should work on our export. All this will stop

What are you exporting as a business everything nor be FG.

World's Top Performing Currency and Insight for Naira

* Government/CBN should stop the printing 500 NGN notes and 1,000 NGN notes (the use of #200 note should be sparingly) and officially discontinue the use of these currencies!

* Reintroduction of Nigeria coins, 50Kobo, 1 NGN and 2 NGN.

* Focus should be on Local Business and not call for foreign investment; as foreigner will eventually and continually repatriate their profits in USD. (learning from what is happening in China)



Welcome, lets get started by examining the top 10 performing currencies in the world to gain necessary insights before drawing our conclusions.

*.Kuwait Dinar KWD: ( 1 KWD = 4,920.49 NGN )
Bank notes: 1/4, 1/2, 1, 5, 10, 20 Dinars -------------- Highest denomination == 20 Dinars; Coins == Yes
Coins: 5, 10, 20, 50, 100, 200 Fils


*.Bahraini Dinar BHD: ( 1 BHD = 4,021.64 NGN )
Bank note: BD 1/2, BD 1, BD 5, BD 10, BD 20 --------------- Highest denomination == BD 20; Coins == Yes
Coins: 5, 10, 25, 50, 100 Fils, BD 1/2


*.Omani Rial OMR: ( 1 OMR = 3,937.77 NGN )
Bank note: 1/2, 1, 5, 10, 20, 50 Rials --------------- Highest denomination == 50 Rials; Coin == Yes
Coin: 50, 10, 20, 50, 100 baisa and rarely used 200 biasa


*.Jordanian Dinar JDD: ( 1 JDD = 507,65070 NGN )
Bank notes: 1, 5, 10, 20, 50, Dinars ------------------- Highest denomination == 50 Dinars; Coin == Yes
Coins: 1/2, 1, quirsh, 21/2, 5, 10 Piastras


*.British Pound GBP: ( 1 GBP = 2,135.49 NGN )
Bank notes: €5, €10, €20, €50 ----------------------- Highest denomination == €50; Coin == Yes
Coins: 1P, 2P, 5P, 10P, 50P, €1, €2


*.Caymanian dollar KYD: ( 1 KYD = 1,815.81 NGN )
Bank notes: 1, 5, 10, 25, 50, 100 Dollars ------------------- Highest denomination == 100 Dollars; Coin == Yes
Coin: 1, 5, 10, 25 Cents


*.Euro EUR: ( 1 EUR = 1,631.43 NGN )
Bank notes: €5, €10, €20, €50, €100, and €200 --------------- Highest denomination == €200; Coin == Yes


*.Swiss Franc CHF: ( 1 CHF = 1,719.44 NGN )
Bank note: 10, 20, 50, 100, 200, 1000 francs ------------------- Highest denomination == 200 francs; Coin == Yes
Coins: 5, 10 and 20 Rp/cts, 1/2, 1, 2 and 5 Fracs


*.United State dollar USD: ( 1 USD = 1600 NGN )
Bank note: $1, $2, $5, $10, $20, $50, $100 ----------------- Highest denomination == $100; Coin == Yes
Coins: 1C, 5C, 10C, $1/4, $1/2, $1.




Go back to the list once again and check what's the highest denominations of each currency (and population of users of each currency), You will discover that the top performing currencies do not have high face value like we have 500 NGN and 1,000 NGN in Nigeria.

Also, you will notice that the top performing currencies have coins form of currency with denomination of very low face value.


The highest of the denomination is 1000 Franc followed by 500 EUR. 1000 Franc is not in frequent use and the highest Franc denomination next to it is 200 Frank ( not like 500 NGN as we have here in nigeria ). Also the use of 500 EUR was discontinue in year 2018.

Get a hold on history of exchange rate in Nigerian, you will find out that every introduction of new high (face value) denomination currency note has adverse effect on exchange rate.


Why High Denominational Currency Note Is Bad:
1. Increase in prints of currency notes with high face value e.g 1000 NGN makes other lower currency of less important and less useful. This can gradually lead to upgrade of price of goods and services in market.

2. It makes stealing, looting and hoarding of cash easier as larger amount of money value can be packed into a very small space.


3. 500 NGN and 1000 NGN are no money for the common man, go to the market and examine what denomination are most in use.

4. It's in a way opposing the cashless policy by the federal government of Nigeria.


What The Wise Nations Did:
1. United State of Ameria used to have $500, $1000, $2000 currency notes until December 14, 1945, when the high denominational bills were last printed and officially discontinued on July 14, 1969 by the Federal Reserve System.

2. Europian Central Bank announced on 4 May, 2016 that it would phase out the 500 Euro notes by the end of 2018.



Other Factors That May Affect The Exchange Rate Of A Currency Include:
1. Ratio of goods/services importation to exportation

2. Availability of currency and number of complying users.

The Illegal illegal printing of currency by the CBN according to as reported by some news media outlets has a long way to desctroy value on our cash.

3. Inflation rate

4. Government debts and federal reserve.

5. Political policies and stability

6. And many more



My Recomendations:
Nigerian government should permanently discontinue and remove 500 NGN and 1,000 NGN currency notes from circulation. Reintroduction of 50 Kobo, 1 NGN and 2 NGN coins should also be done.

A government fighting corruption will yield to this advice as abundance of lower denomination currency will discourage looters from hoarding and keeping cash in a safe instead of bank.

Caveat emptor:
This writeup is a personal opinion resulting from my many observations. It is not a scholarly work and should not be treated as one. Copy-and-paste bloggers should please reference the link and author of the article.




TOP PERFORMING CURRENCY (UPDATED CONVERSION RATEs)

1. Kuwaiti dinar (KWD)
The Kuwaiti dinar is the strongest currency in the world with 1 Kuwaiti dinar buying 3.26 US dollars (or, put another way, US$1 equals 0.31 Kuwaiti dinars).

Kuwait is located between Saudi Arabia and Iraq, earning much of its wealth from being a leading global exporter of oil. The Kuwaiti dinar was introduced in the 1960s and was initially pegged to the British pound before being re-pegged to an undisclosed basket of currencies.

2. Bahraini dinar (BHD)
The Bahraini dinar is the second strongest currency in the world with 1 Bahraini dinar buying 2.65 US dollars (or US$1 equals 0.38 Bahraini dinars).

Bahrain is an island nation in the Persian Gulf off the coast of Saudi Arabia. Like Kuwait, the country earns much of its wealth from oil and gas exports. The Bahraini dinar entered circulation in 1965 and is pegged to the US dollar.

3. Omani rial (OMR)
The Omani rial is the third strongest currency in the world with 1 Omani rial buying 2.60 US dollars (or US$1 equals 0.38 Omani rial).

Oman sits between the United Arab Emirates and Yemen at the tip of the Arabian peninsula. As with its other wealthy neighbours, Oman is a major exporter of oil and gas. The Omani rial was introduced in the 1970s and is pegged to the US dollar.

4. Jordanian dinar (JOD)
The Jordanian dinar is the fourth strongest currency in the world with 1 Jordanian dinar buying 1.41 US dollars (or US$1 equals 0.71 Jordanian dinar).

Jordan is largely land-locked country in the Middle East. Jordan is less dependent on oil and gas exports than its neighbours and has struggled with sluggish economic growth and rising debt. The Jordanian dinar entered circulation in 1950 and is pegged to the US dollar.

5. British pound (GBP)
The British pound is the fifth strongest currency in the world with 1 British pound buying 1.28 US dollars (or US$1 equals 0.78 British pounds).

Britain is the sixth largest country by Gross Domestic Product (GDP), according to the World Bank. The pound was first introduced in the 1400s before being decimalised in 1971. It is free-floating and thus not pegged to other currencies.

5. (Tie) Gibraltar pound (GIP)
The Gibraltar pound is the joint fifth strongest currency in the world with 1 Gibraltar pound buying 1.28 US dollars (or US$1 equals 0.78 Gibraltar pounds).

Gibraltar is located at the southern tip of Spain and is officially a British territory. The Gibraltar pound was first introduced in the 1920s and is pegged to the British pound (at par, meaning that one GIP equals one GBP).

6. Cayman Islands dollar (KYD)
The Cayman Islands dollar is the sixth-strongest currency in the world with 1 Cayman Islands dollar buying 1.20 US dollars (or US$1 equals 0.83 Cayman Islands dollars).

The Cayman Islands is a British territory in the Caribbean and is an offshore financial centre. The Cayman Islands dollar was first introduced in the 1970s and is pegged to the US dollar.

7. Swiss franc (CHF)
The Swiss franc is the seventh strongest currency in the world with 1 Swiss franc buying 1.15 US dollars (or US$1 equals 0.87 Swiss francs).

The Swiss franc is the official legal tender of Switzerland and Liechtenstein and is seen as a safe haven due to Switzerland’s political stability. The Swiss franc was introduced in 1850 and was later briefly pegged to the Euro before moving to a free-float.

8. Euro (EUR)
The Euro is the eighth strongest currency in the world with 1 Euro buying 1.10 US dollars (or US$1 equals 0.91 euros).

The Euro is the official currency of the Eurozone, being 20 out of the 27 countries that form part of the European Union. The physical currency entered circulation in 2002 and is free-floating.

Related: Euro to AUD forecast

10. US dollar (USD)
The US dollar is the 10th strongest currency in the world, worth exactly 1 against itself. All other units of currency across the globe are worth less than a US dollar.

Created in the 1700s, the US dollar is legal tender in the USA, other US territories and sovereign nations including Ecuador and Zimbabwe.

The US is the world’s largest economy by GDP and the US dollar is by far the most-traded currency globally.

The US dollar is also the largest reserve currency in the world (the currency most held by central banks) and is the currency used to price many commodities, including oil, gold and copper.
https://www.forbes.com/advisor/au/investing/currencies/top-10-strongest-currencies-in-the-world/


My piece of contribution.

What real difference in the medium to long term dies this make? Do the math. It makes no sense.

The only thing that can make sense if if they remit part and fix part on a long term.

SoNature:
Yemi Cardoso dey vex; he's trying all the tricks in the book to prove that his isn't a patchy-patchy qualification If NNPC had been a serious state-run oil corporation, Nigeria would have sent many IOCs back to their countries and kept all the USD here.

In the other news, I thought that with all these CBN policies flying up and down banks would stop Nigerians who have dorm accounts from accessing their hard-earned USD. I was happy when I went to bank yesterday and withdrew some real cash in USD

Sharp guy, you now used it to buy bag of rice for 28k abi? What you will use them to buy have actually double or trippled in price. So what are you rejoicing about?

Hoelujohn:

Sharp guy, you now used it to buy bag of rice for 28k abi? What you will use them to buy have actually double or trippled in price. So what are you rejoicing about?

For having the real cash. That way, even if they stop paying USD in cash, I won't have anything to worry about.

BTW, inflation affects everyone, but those who earn in naira in Nigeria are by far worse hit than those who earn in foreign currency in Nigeria.

A repeat of the Airlines Vs Ministry of aviation loading.....how can you tell them not to go with their money or did you give them loans.....all these knee-jerk policies are just guesswork "(feeling your way in darkness)" kind of solutions

SoNature:
Yemi Cardoso dey vex; he's trying all the tricks in the book to prove that his isn't a patchy-patchy qualification If NNPC had been a serious state-run oil corporation, Nigeria would have sent many IOCs back to their countries and kept all the USD here.

In the other news, I thought that with all these CBN policies flying up and down banks would stop Nigerians who have dorm accounts from accessing their hard-earned USD. I was happy when I went to bank yesterday and withdrew some real cash in USD

Your first paragraph has indeed said it all. There's nothing international about ExxonMobil, shell etc. These are corporations from imperial/colonial states. They are only present in western countries like UK Germany and host African countries that they exploit with the consent of the brainwashed Africans in leadership positions.

They are imperial oil companies. Their focus is export of nigeruan crude to the west robbing Nigeria of forex from refining and export.

All imperial oil companies should be sent back to their countries let Nigerian companies explore and refine crude.

I she this as the last kicks of a dying horse.

After 90 day they are back for the remaining 50%, what happens then. It is just a move to slow outflow of forex and allow the exchange market some breathing space.

SoNature:

Source: https://nairametrics.com/2024/02/15/cbn-stops-international-oil-companies-from-remitting-100-of-forex-proceeds-abroad/

I have been saying this since, but this is a half measure. Maybe the CBN governor is testing the concepts.

Instead of calling it delay in remitting usd, Demand that all exports be paid for 50% in naira as a start.
90 days is too short a delay. Investors should repatriate funds once or twice in the year. The impact of those funds circulating in banks for 6 month is huge for the naira.

Instead of the bureaucracy of approving cash pooling every months. Export are paid for 50% in naira( which means a bank would have sold the naira and recieved the USD), banks to process investor repatriation twice in a year, no need for CBN oversight as bank will not err and loose their licence. This also means all oil companies will not be repatriating profits at same time, rather banks will have to schedule them based on availability of USD.

Also note that most of the oil companies export to their own refineries. Exporting in naira means they will start accumulating naira with their parent company to be able to by crude from them selves.

even though it is a good move, it still wont solve the problem, because the dollars retained in the system will still be bought and sent out by importers. the main issue is to improve and increase local manufacturing , production and agriculture . once this is done all other positive policies will start having instant impact

peleson1:
It's ok .
It means that at everytime,we v some dollars in naira domiciled in Nigeria..


In a nullshell...no fleeing dollar

Johnjustice:
Good move, all these things companies do here in terms of remittances, they can't do it in UK or America.

Let's start selling our crude and gas in Naira, this will strengthen naira, when people start demanding it to make payments in international trade.

Falana gave this advice and it makes sense.

Most people in leadership positions are brainwashed.