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CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 (12766 Views)

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CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Epstein(m): 8:15pm On Feb 25
The Central Bank of Nigeria (CBN) is considering limiting the cash payment for buying and selling foreign currencies by Bureau De Change (BDC) operators to a maximum of $500 and ensure payments above the stipulated figure is done digitally.

The apex bank disclosed this in its proposed revised regulatory guidelines for BDC operators in Nigeria published by the bank where it proposed that electronic transfer/purchase of foreign currencies are to be made to BDCs naira account.

It stated,

“Payments to customers for cash purchases of foreign currency, the equivalent of above USD500, shall be by transfer to the customer’s Naira bank account. If the customer is non- resident (whether Nigerian or not), a BDC shall issue the customer a prepaid NGN card.

Where such a card is issued, relevant maximum credit and cumulative limits, in line with relevant Know Your Customer requirements, shall apply.”

“Payments to customers for cash purchases of foreign currency of the equivalent of USD500 and below may be made in cash.”
Permissible and non-permissible activities if BDCs

According to the bank, permissible activities by BDCs include; acquisition of forex from approved sources, sales of FX in line with its guidelines, serve as cashout points for IMTOs etc.

On the other hand, the apex bank prevented BDC from engaging in street trading, account maintenance, accepting deposits and granting of loans, facilitating international outward transfers, dealing in precious stones and metals, establishing subsidiaries and others.

What you should know
The CBN in recent times have blamed the whopping depreciation of the naira to speculation with the Governor stating the naira is “undervalued” and with time return to its true value.

The apex bank in the past few months have introduced a slew of initiatives aimed at boosting liquidity in the forex market and shoring up the value of the naira.

The proposed regulation aims to sanitise the operations of BDCs, ensure the apex bank monitors the bulk of forex inflow and outflow and curb illicit flow of foreign currencies in the economy. The regulation although a proposal is subject to review overtime.

The proposal also aims to curb the perceived “dollarization” of the Nigerian economy where businesses prefer receiving payment for goods and services in Nigeria in USD rather than naira. A behaviour the apex bank has attributed to be responsible for the increase demand for FX in the country.

The Governor of the CBN had earlier called on Nigerians to moderate their demand for FX stating that FX expended on medical tourism and education in the last decade amounting to $40 billion surpass the current foreign exchange reserve.
https://nairametrics.com/2024/02/24/cbn-plans-to-limit-buying-and-selling-of-forex-in-cash-by-bdcs-to-500/

13 Likes 3 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by 9jatriot(m): 8:25pm On Feb 25
Very good.... CBN dishing it out hot... Any thing above that should be by transfer.

That means intra bank transfer of forex should now be available.

However, it is interesting how USD has become a secondary currency in Nigeria

56 Likes 5 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Truths9ja: 8:26pm On Feb 25
Epstein:
The Central Bank of Nigeria (CBN) is considering limiting the cash payment for buying and selling foreign currencies by Bureau De Change (BDC) operators to a maximum of $500 and ensure payments above the stipulated figure is done digitally.

The apex bank disclosed this in its proposed revised regulatory guidelines for BDC operators in Nigeria published by the bank where it proposed that electronic transfer/purchase of foreign currencies are to be made to BDCs naira account.

It stated,

“Payments to customers for cash purchases of foreign currency, the equivalent of above USD500, shall be by transfer to the customer’s Naira bank account. If the customer is non- resident (whether Nigerian or not), a BDC shall issue the customer a prepaid NGN card.

Where such a card is issued, relevant maximum credit and cumulative limits, in line with relevant Know Your Customer requirements, shall apply.”

“Payments to customers for cash purchases of foreign currency of the equivalent of USD500 and below may be made in cash.”
Permissible and non-permissible activities if BDCs

According to the bank, permissible activities by BDCs include; acquisition of forex from approved sources, sales of FX in line with its guidelines, serve as cashout points for IMTOs etc.

On the other hand, the apex bank prevented BDC from engaging in street trading, account maintenance, accepting deposits and granting of loans, facilitating international outward transfers, dealing in precious stones and metals, establishing subsidiaries and others.

What you should know
The CBN in recent times have blamed the whopping depreciation of the naira to speculation with the Governor stating the naira is “undervalued” and with time return to its true value.

The apex bank in the past few months have introduced a slew of initiatives aimed at boosting liquidity in the forex market and shoring up the value of the naira.

The proposed regulation aims to sanitise the operations of BDCs, ensure the apex bank monitors the bulk of forex inflow and outflow and curb illicit flow of foreign currencies in the economy. The regulation although a proposal is subject to review overtime.

The proposal also aims to curb the perceived “dollarization” of the Nigerian economy where businesses prefer receiving payment for goods and services in Nigeria in USD rather than naira. A behaviour the apex bank has attributed to be responsible for the increase demand for FX in the country.

The Governor of the CBN had earlier called on Nigerians to moderate their demand for FX stating that FX expended on medical tourism and education in the last decade amounting to $40 billion surpass the current foreign exchange reserve.

https://nairametrics.com/2024/02/24/cbn-plans-to-limit-buying-and-selling-of-forex-in-cash-by-bdcs-to-500/
All this gragra is temporary solution

1 Like 1 Share

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Epstein(m): 8:28pm On Feb 25
Yeye policies,

2 Likes

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Opintiwa: 8:30pm On Feb 25
This is what I call rise and fall trial and error

Front and back.

But under the jihadist Buhari and the cocaine sniffer regime.

What is have been seeing is rise and fall , fall and rise .

Rise Fall , fall again

Fall yakata.

Rise and show media

Fall finish

14 Likes 3 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by pandoragirigory: 8:31pm On Feb 25
Anything that will cripple criminals is acceptable

63 Likes 4 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by baby124: 8:33pm On Feb 25
Good. I see the useless and lazy organized crime syndicate called BDC are always online chatting trash. After this they need to go and find farm laborer work or open factory.

37 Likes 3 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by lwisee: 8:40pm On Feb 25
Nice one

Some enemies of Nigeria will be in sifare pain

34 Likes 4 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Biodun556(m): 8:44pm On Feb 25
9jatriot:
Very good.... CBN dishing it out hot... Any thing above that should be by transfer.

That means intra bank transfer of forex should now be available.

However, it is interesting how USD has become a secondary currency in Nigeria


With bureau de change reforms Tinubu is challenging the north and stepping on their toes. I will not be surprised if they are calling for coup


Obasanjo, Jonathan, Buhari knows this forex malpractice but lacks the courage to correct it

33 Likes 1 Share

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by 9jatriot(m): 9:09pm On Feb 25
They won't.

The only people wishing for a coup are PO supporters.
Biodun556:



With bureau de change reforms Tinubu is challenging the north and stepping on their toes. I will not be surprised if they are calling for coup


Obasanjo, Jonathan, Buhari knows this forex malpractice but lacks the courage to correct it

21 Likes

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by matify83: 9:15pm On Feb 25
The reforms in the banking and Fx sectors are coming in fast and furious at dizzying speeds.

The North may misconstrue this as an attack on their business interest but who gives a hoot as long as it brings sanity to the Fx market and stability in the naira value.

26 Likes 1 Share

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by marenkurz: 9:22pm On Feb 25
Isn't it easier to cancel BDC? Let banks be responsible for foreign exchange.
Then, CBN will know the root of the problem.

41 Likes 1 Share

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by marenkurz: 9:24pm On Feb 25
You obviously don't know who controls BDC. BDC is a big-easy business for the northerners; they control it.

9jatriot:
They won't.

The only people wishing for a coup are PO supporters.

16 Likes 1 Share

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by 9jatriot(m): 9:24pm On Feb 25
The North are not stupid, they understand politics more than the South and know when someone is doing the right thing versus when someone is doing politics.

Tinubu is also perceived by them to be a strong personality, PO for example would know not have known what to do, and even if he did would not have had the courage non the acceptance to do the right thing.
matify83:
The reforms in the banking and Fx sectors are coming in fast and furious at dizzying speeds.

The North may misconstrue this as an attack on their business interest but who gives a hoot as long as it brings sanity to the Fx market and stability in the naira value.

8 Likes

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by pharmagba: 9:31pm On Feb 25
This is long overdue.
CBN wasted too much time.
It's the first thing Cardoso should have done as soon as $1 hits N900.

Let see the fight back of our dear Naira

29 Likes 2 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by adekolaelect(m): 9:31pm On Feb 25
Epstein:
Yeye policies,
Yeye commenter .

61 Likes 4 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by BigIyanga: 9:34pm On Feb 25
Why does Naija need BDCs? Why not go to your bank with ur BVN,NIN, FORM-A, FORM M.. Banks vet your docs and request for FX. then CBN will pay the oversea recipients on FOrm M or A… and you have 90days to submit bill of lading to your banks for onward transfers to sNaija customs.

CBN should build a portal like Jamb/WAEC wheb FX disbursement with Form M/A can be submitted and tracked in real time.

42 Likes 3 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by commoditiesnig: 9:34pm On Feb 25
marenkurz:
Isn't it easier to cancel BDC? Let banks be responsible for foreign exchange.
Then, CBN will know the root of the problem.
True

4 Likes

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Shadomaan7: 9:36pm On Feb 25
Wow, this could be a game changer for the economy, reducing illicit activities and promoting digital payments.

61 Likes 4 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Biodun556(m): 9:46pm On Feb 25
BigIyanga:
Why does Naija need BDC? Why not go to your bank witj ur BVN,NIN, FORM-A, FORM M.. Banks vet your docs and request.. than CBN will pay the recipient on FOrm M or A… and you 90days to submit bill of lading to your banks for onward transfers to sNaija customs.

CBN should build a portal like Jamb/WAEC wheb FX disburse with Form M/A can be submitted and tracked in real time.

We will get there

All I know is that on this bdc matter, the CBN governor is right

8 Likes 2 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by TheBillyonaire: 9:54pm On Feb 25
How will they know

2 Likes 1 Share

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by plaetton: 9:56pm On Feb 25
9jatriot:
Very good.... CBN dishing it out hot... Any thing above that should be by transfer.

That means intra bank transfer of forex should now be available.

However, it is interesting how USD has become a secondary currency in Nigeria
Another nonsensical ad hoc policy dead on arrival.
I still fail to understand how restricting the availability of forex would help the Naira.
Nigeria is heavily dependent on imported goods, from toothpick to the very fuel we use to run our generator-economy. Therefore, forex would always be in great demand. If the supply is disrupted by ill-conceived ad hoc policies, the value of the available forex would always go up and up.

10 Likes 1 Share

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by correctguy101(m): 10:06pm On Feb 25
TheBillyonaire:
How will they know

The usual pretence na...

What's on paper remains on paper.. The real life practice of magickallly moving cash will continue. Las las, even hey themselves will end up confused as is common with disorder.

It's all crazy stuff. Nigeria needs strong hand o force her on the right path..

Smh

1 Like

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Chinkoalhaji34: 10:10pm On Feb 25
This new regulation from CBN could really help stabilize the value of the naira and curb illicit flow of foreign currencies in Nigeria.

61 Likes 2 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Crimecity: 10:12pm On Feb 25
plaetton:

Another nonsensical ad hoc policy dead on arrival.
I still fail to understand how restricting the availability of forex would help the Naira.
Nigeria is heavily dependent on imported goods, from toothpick to the very fuel we use to run our generator-economy. Therefore, forex would always be in great demand. If the supply is disrupted by ill-conceived ad hoc policies, the value of the available forex would always go up and up.

Don't mind them.

They should keep clamoring for BDCs to be attacked, while refusing to solve the main issue. With this policy, the dollar will even jump. The law of demand and supply isn't for economics neophytes.

7 Likes

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Chinkoalhaji34: 10:17pm On Feb 25
Crimecity:


Don't mind them.

They should keep clamoring for BDCs to be attacked, while refusing to solve the main issue. With this policy, the dollar will even jump. The law of demand and supply isn't for economics neophytes.

How is that your business if the $$ jump or fall?

Are you not enemy of Nigeria again?

65 Likes 2 Shares

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by 9jatriot(m): 10:31pm On Feb 25
First of all, it is shameful for Nigeria to always call themselves an import dependent nation with pride.

Secondly, you want to pay your supplier in China, why do you need the money in cash when what you should be doing is wire transfer? Why do you need cash of a currency that is not the legal tender of that country?
plaetton:

Another nonsensical ad hoc policy dead on arrival.
I still fail to understand how restricting the availability of forex would help the Naira.
Nigeria is heavily dependent on imported goods, from toothpick to the very fuel we use to run our generator-economy. Therefore, forex would always be in great demand. If the supply is disrupted by ill-conceived ad hoc policies, the value of the available forex would always go up and up.

29 Likes 1 Share

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Paraman: 10:31pm On Feb 25
Biodun556:



With bureau de change reforms Tinubu is challenging the north and stepping on their toes. I will not be surprised if they are calling for coup


forget all this chidish rant of coup. Nigeria is not Niger republic or Mali.

10 Likes 1 Share

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by Biodun556(m): 10:42pm On Feb 25
Paraman:
forget all this chidish rant of coup. Nigeria is not Niger republic or Mali.

Absolutely
Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by PHAYOL81: 11:42pm On Feb 25
Just do anything to depreciate dollars dominance on our local currency and our economy.

1 Like

Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by oyatz(m): 12:00am On Feb 26
plaetton:

Another nonsensical ad hoc policy dead on arrival.
I still fail to understand how restricting the availability of forex would help the Naira.
Nigeria is heavily dependent on imported goods, from toothpick to the very fuel we use to run our generator-economy. Therefore, forex would always be in great demand. If the supply is disrupted by ill-conceived ad hoc policies, the value of the available forex would always go up and up.

You are mixing issues up.
This policy is to regulate the BDC ,not to restrict FOREX.

You don need to touch dollars in cash for you to do Import business.

Nigeria is NOT the only country in West Africa with high importation yet we don't see their economy highly dollarized like this.

In other countries, to get above $100, they will request for your international passport and you won't see private citizens in Benin Republic, Togo, Ghana or Mali holding $1000 cash.


What is presently happening in Nigeria is that some elites have somehow created a parallel currency within Nigeria called the DOLLAR with a competing and opposing values to the Naira within the economy

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Re: CBN Plans To Limit Buying And Selling Of FOREX In Cash By BSCs To $500 by BadMaster: 12:10am On Feb 26
These people are just idiots, doing trial and error. Why not just scrap the whole thing?

2 Likes 1 Share

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