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Nairaland Forum / Nairaland / General / Politics / Peter Obi Is Wrong On Bdcs (2022 Views)
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Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 11:15am On Feb 25 |
successmatters: On the contrary, our capacity is bound to increase. Now we routinely use our own substitutes for augmentin for example |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 11:15am On Feb 25 |
Straybullet: Thanks ojare |
Re: Peter Obi Is Wrong On Bdcs by mrvitalis(m): 11:16am On Feb 25 |
Strafudeen:BDC are not a serious issue.. They are not CBN is simple If you don't know how to manage it short term simply say so let's tell u how it's done |
Re: Peter Obi Is Wrong On Bdcs by successmatters(m): 11:17am On Feb 25 |
Strafudeen: Until our capacity increases, the symptom will be getting worse. And cutting off the small supply of medication while there is little production and no withdrawal of dollars from banks, there is no hope in the near future. |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 11:21am On Feb 25 |
successmatters: Chicken and egg situation. Way forward is take any relevant action immediately possible Bdcs must go |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 11:23am On Feb 25 |
mrvitalis: This thread is for you to share your views. But don't say BDCs are not the issue, do you know how much capital is locked up as dollars in private hands because they know they can quickly run to bdcs and clean them up BDCs are part of the issue 1 Like |
Re: Peter Obi Is Wrong On Bdcs by Godfullsam(m): 11:26am On Feb 25 |
Strafudeen: This one that you are criticising your Messiah , I hope your tribes men whose brains have been conditioned to accept everything obi said will not come after you? 1 Like 1 Share |
Re: Peter Obi Is Wrong On Bdcs by successmatters(m): 11:27am On Feb 25 |
Strafudeen: BDC are even the solution. When you lock the banks like you are advocating and people cannot get dollars, godds can get inflated to up to 2000% |
Re: Peter Obi Is Wrong On Bdcs by YourMrBoo: 11:28am On Feb 25 |
Strafudeen: End sars was masses revolution to federal government decay Bdc is not a governmental agency but business that oils the economy you can't go and shut them out without providing another efficient way of trading fx. Comparing end sars with bdc is just being plain foolish and sheer stupidity Let's see how the rascality goes. You will still come and cry 😠1 Like 1 Share |
Re: Peter Obi Is Wrong On Bdcs by aribisala0(m): 11:31am On Feb 25 |
IduNaOba:not very place Even Dubai? Why Even? So Dubai is now a benchmark of advancement Hmm There are many countries you can live in and travel to and from and not touch cash for the whole year that is 100% cashless Even public buses take cashless payment. It is usually a hallmark of backwardness when it is such a major thing.as in Nigeria 1 Like |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 11:37am On Feb 25 |
successmatters: Who is advocating locking the banks |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 11:39am On Feb 25 |
YourMrBoo: Be respectful with your language please I'm not advocating rascality. But BDCs are the natural first place to begin a quick fix of the uncontrolled and rampant dollar racketeering. 1 Like |
Re: Peter Obi Is Wrong On Bdcs by successmatters(m): 11:40am On Feb 25 |
Strafudeen: You spoke against people running to BDC to clear their dollars, meaning that if you have your way, you will block banks so they cannot do that easily. That's a way of locking the banks, blocking free trade. |
Re: Peter Obi Is Wrong On Bdcs by YourMrBoo: 11:45am On Feb 25 |
Strafudeen: Respectfully you're wrong. Fixing the economy and shoring up foreign reserve should be the real fix. Focusing on quick fix won't get us nowhere. You will get the needed results but it's all wash. Not gonna last Targeting bdc should be the last menu and also providing a system that can weed the wrong guys out. Not shutting them down completely 1 Like 1 Share |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 11:58am On Feb 25 |
YourMrBoo: Do you know a malaria patient can die of convulsions you refused to quickly stop, while receiving treatment for his malaria Quick fixes address an area rapidly. The main treatment must go on But bdcs are a problem and they must be handled 1 Like |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 12:01pm On Feb 25 |
successmatters: Nope never meant that We should never run a system where people can have foreign currency to such a tune as to threaten the economy and security of the nation. Money supply is critical. The CBN regularly mops up excess liquidity. But with these rogue dollars out of reach ,you just can't control money supply. These BDCs are the confidence people have to stash so much, knowing its easy to change or launder. The CBN wouldn't be so lazy or ignirant in undermining national economy as to do what BDCs do 1 Like |
Re: Peter Obi Is Wrong On Bdcs by YourMrBoo: 12:07pm On Feb 25 |
Strafudeen: So they should be shut .. Good luck with that 2 Likes 1 Share |
Re: Peter Obi Is Wrong On Bdcs by Bonjovi13: 12:17pm On Feb 25 |
Strafudeen: You have tried based on your understanding of the issues. However you must know that Nigeria is a very unique country. They system is flawed and deliberately too to allow criminals, currupt politicians and public servants to profit and thrive. Not everything you see is as it appears in Nigeria. Now if the system wasn't flawed the BDCs were simply licensed to provide forex services to the public where for some reasons they cannot use the banks. They were not meant to be the first option for buying and selling of forex. The banks have the primary function of meeting the forex needs of MDA's, commercial and private customers with the CBN auctioning forex to the banks on the opening of business everyday. Because the CBN is able to match the deman for forex on the official side, BDC rates will not be too far from the official rates cos supply is there. However that's not the case. CBN currently cannot meet the demand on the official side and also via the banks. Regular customers cannot buy dollars from banks so they have to recourse to the BDC. Now those people I mentioned above including the bankers now exploit the system, they access dollars via CBN and the banks and sell them to the BDC at a profit. That's what Peter Obi mentioned as unproductive excess supply. The BDC guys add their own markup and sell to the public. The demand is higher than supply to the dollars value goes up whilst the Naira value comes down. The middle class that have savings in naira panics and rushes to the BDCs to buy dollars and store to maintain its value. BDCs want more profit so they speculate and fix prices. It works because the official market has low supply. The available dollars is moped up from the official system and sold to the BDC, rince and repeat( Round tripping). Meanwhile, Nigeria is still dependent on imports, oil production is down, no forex coming in. So supply is low. That's why Peter Obi is saying going after the BDC is ill advised. Fix the the source of the problem, the symptoms would disappear. 3 Likes |
Re: Peter Obi Is Wrong On Bdcs by commoditiesnig: 12:29pm On Feb 25 |
Bureau de changes are a major part of the problem because as long as they freely do as they like, people who steal dollars know exactly where to run and clean it up in a few minutes. Gbam! 1 Like |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 12:29pm On Feb 25 |
Bonjovi13: Thanks Yeah but the problem still has to be solved. Long term solutions leave us all dead in a short while. Quick fixes are necessary. Not just BDCs , if we have to place a moratorium on foreign imports, and payments for a while so be it. We have to grow this economy if we are not to die. Foreign goods, schools, etc are good, but can be done without. We are in that dire emergency, let us pull out all the stops now 1 Like |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 12:29pm On Feb 25 |
commoditiesnig: Thanks |
Re: Peter Obi Is Wrong On Bdcs by mrvitalis(m): 12:33pm On Feb 25 |
Strafudeen:There have always been BDC since 1990s they were not is not and would never be the issue Stop printing money if u want naira stabilizing in the short term |
Re: Peter Obi Is Wrong On Bdcs by Strafudeen: 12:37pm On Feb 25 |
mrvitalis: That is choosing to punish the masses rather than the thieving elite Stop printing money and you end up with the cash crunch of last year Clam.p down on dollars and you squeeze the high volumes of money unreached by CBN hertetofore 1 Like |
Re: Peter Obi Is Wrong On Bdcs by ThierryJay: 12:48pm On Feb 25 |
mrvitalis: The thing is what Obi is proposing i.e consumption to production, will take a few years to implement and bear fruit by which time exchange rate could have already reached 10k per dollar at the rate it was going. So a quick fix was needed which is the stringent regulation of Bdc activities to stabilise the rate first and weed out fx saboteurs. Subsequently Govt can focus on the C2P measures for long term improvement. So far, the clampdown on the BDCs is working as the rate has gone back to around 1.5k/usd. If nothing was done that last week, we'd be talking of close to 3k/dollar by now at the rate it was plummeting and most of the drivers were artificial. 1 Like |
Re: Peter Obi Is Wrong On Bdcs by mrvitalis(m): 12:58pm On Feb 25 |
ThierryJay:Firstly the issue with BDC is a structural issues U don't need need to arrest them to fix it Create a presidential statement signed by the president stating how forex should move From CBN to Banks to BDC Any banks or banker found wanting state the consequences ( bank is fine 50 billion person who exposes it gets 5 10% ) banker found wanting lose 50% of their pension funds banned from banking/financial industry for life Make similar proclamation by for BDC... Make the National Assembly to make this law binding Send DSS as undercover to captured 100 people and set them as examples ... Bro it's not that difficult everyone would be straight 2 Likes |
Re: Peter Obi Is Wrong On Bdcs by LordBillionz: 1:07pm On Feb 25 |
Strafudeen:BDC ain't the problem but the bank MDs are. Let me give you an instance using our Naira BDC (pos Operators). If we have ATMs readily available where we can get needed cash, would we have much need for pos operators? If the bank make cash available, not much will be going to pos to buy naira. Same goes with bdc, if the bank ain't riddled with much bureaucracy and dollars are sold to verified needed hands, this rates would have been under control. Efficient vetting of dollar buying, monitoring its usage by the buyer and ensuring the dollars are used for the stated purpose for buying it can help control the rates. Let banks begin to sell dollars but at a vetted, controlled and monitored process. 2 Likes |
Re: Peter Obi Is Wrong On Bdcs by ThierryJay: 1:09pm On Feb 25 |
mrvitalis: Your proposals make sense. I wasnt really referring to the crude arrests in my comment but the raising of bdc seed capital, ban of access to Binance & other platforms where manipulations were going on, etc. They should particularly extend the restrictions to banks and their CEOs cause they are bdc racketeering enablers. Note that this is just a short term fix for stability. The sustainable route is to export more and import less. |
Re: Peter Obi Is Wrong On Bdcs by Vischy: 1:12pm On Feb 25 |
Very educative thread void of insults and blackmailing. Mature conversations so far All thanks to my fellow Obidients @Strafudeen @mrvitalis, @Straybullet and @successmatters. Obidients train we move ....... 2 Likes 1 Share |
Re: Peter Obi Is Wrong On Bdcs by mrvitalis(m): 1:15pm On Feb 25 |
ThierryJay:First rule of government is don't make bans you can't enforce it would make you look weak You can't ban bianace you can't ban crypto trading The people demanding money from bianace are Chinese importers provide dollars cheaper for them and watch bianace scatter Truth is there is little anyone one can do short term Floating ab unstable currency got us here Peg the naira at 2000 yes higher than black market Hope it would hold and restore confidence But identifying manufacturers of import substitutes and export potential goods and given them low interest loans to expand production through banks is still the best solutions 1 Like |
Re: Peter Obi Is Wrong On Bdcs by mrvitalis(m): 1:20pm On Feb 25 |
Vischy:Obi has always believed in lasting solutions, let's do it once and for all Truth is there is no confidence on the naira There is no confidence on the APC Tinubu lead government to be able to turn this economy around People who don't need naira ( like me) are changing naira savings to dollars My radical solution is devalue naira to 2000 this would force us to wait . This would reduce demand of naira and make it easier to defend Defend it and this lack of demand would make naira grow to 1600 to a dollars this would boast confidence which would cause panic dollars sells which would then cause more value and confidence on the naira 2 Likes |
Re: Peter Obi Is Wrong On Bdcs by Inspirer1: 1:21pm On Feb 25 |
successmatters:I understand your point. But one thing I don't understand about the arrangement with them is what someone here on nairaland was trying to draw my attention to sometimes ago, which is the difficulty in accessing foreign currency in the banks but so easy to access from the abokis on the streets, is it normal |
Re: Peter Obi Is Wrong On Bdcs by successmatters(m): 1:29pm On Feb 25 |
Inspirer1: I agree that its abnormal, but the abnormality can be cured by supplying banks with dollars and ensuring they dispense it, not punishing BDC for the corruption in the banks. If we make the mistake of driving the BDC underground, the problem will get as bad as drug trade, and this corrupt government cannot fight it. Things will only get worse. 1 Like |
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