Dialpad:
Those keeping dollars.... Whats going on ?

I sympathize with those that purchased above 1300 hoping it will hit 2000+

Bad gamble

If you have spare naira better buy dollars and keep ooo, these looting politicians that like bribes in dollars and taking side chicks for foreign engagements plus bribing delegates with dollars will never allow the naira to be higher than the dollar. Na sure investment.

airsaylongcome:


It's "technical" but there's something called Cash-backed loan where you use the money (in this case USD) you have in a bank as collateral to take a loan from the bank. It sounds crazy and weird I know. But it's a thing. So what CBN is saying is that Banks can no longer use FX as the Cash collateral for the loan.

It's not crazy, at time when you use your own money to finance a business, you may not serious enough with the business, but wen you have money in the banks as collateral for loan you take from same bank, .....you would sit up and focus more on the business, for you to be able to repay your loan and gain profit.



Your mentality would be that, I'm using someone's money to do business and not my own money.

Just like when you are doing daily/ weekly contribution vs keeping your money in ur bank account.

You will work harder to pay contribution, why u might not so serious when u re taking ur savings to ur account in the bank.

Dialpad:
Those keeping dollars.... Whats going on ?

I sympathize with those that purchased above 1300 hoping it will hit 2000+

Bad gamble

A woman was paid #8.2m as her retirement benefits some months ago by the FG.

She took #7.5m out of it to buy dollars in January at about #1,300 or thereabouts. I advised her against the practice but she told me she would sell it by December when it would have gotten to #5,000/$.

As we speak now, she's sick at home, her selfish and self centered hope has been dashed.

I don't know why someone would wish that over 200m people should suffer for him or her to be rich.

I will start paying attention when naira returns to where this administration met it.

Olachase:
Normally they have no choice than to corporate with the CBN law, time for gra gra is gone.

Till now I still don't know the impact of BCD in our society when we have banks

Well what did small boy like me KW, corruption started before I was born

50 years to this time i am not sure African countries will be fine😔😔

Bitter truth, if you like take Vitamin C 🚶🚶🚶

It's to help the informal sector have access to forex but it was compromised

Olachase:
Normally they have no choice than to corporate with the CBN law, time for gra gra is gone.

Till now I still don't know the impact of BCD in our society when we have banks

Well what did small boy like me KW, corruption started before I was born

50 years to this time i am not sure African countries will be fine😔😔
Bitter truth, if you like take Vitamin C 🚶🚶🚶

If you are frequent traveler you would understand why BDC are very important. Travellers don’t even go to banks as such.

Tareq1105:


A woman was paid #8.2m as her retirement benefits some months ago by the FG.

She took #7.5m out of it to buy dollars in January at about #1,300 or thereabouts. I advised her against the practice but she told me she would sell it by December when it would have gotten to #5,000/$.

As we speak now, she's sick at home, her selfish and self centered hope has been dashed.

I don't know why someone would wish that over 200m people should suffer for him or her to be rich.

If the dollar had reached N2500, the same woman will be part of those lam blasting the government but will not be bold enough to tell people what is the source of her own inward joy.
That is a typical Nigerian for you.

Fiscus105:



It's not crazy, at time when you use your own money to finance a business, you may not serious enough with the business, but wen you have money in the banks as collateral for loan you take from same bank, .....you would sit up and focus more on the business, for you to be able to repay your loan and gain profit.



Your mentality would be that, I'm using someone's money to do business and not my own money.

Just like when you are doing daily/ weekly contribution vs keeping your money in ur bank account.

You will work harder to pay contribution, why u might not so serious when u re taking ur savings to ur account in the bank.

Your argument does not cut it.
Every credit facility has a collateral attached to it whether cash backed or in any form. The collateral pledged is an incentive to work hard and offset your loan.

The bad thing about having a dollar balance as a collateral for a credit facility is that the dollar amount is tied down doing nothing while at the same time stifling liquidity in the system.

Why should someone bring in forex with the purpose of doing business in the country only to tie same down in an account and obtain a loan. For the impact even on rhe loan side, go and read more about your demand and supply.

Mr president is the master strategy

Wahala for $ slaves

Impressive

Bananapill:


See as government and BDC they do tete-a-tete. The government no well. Na black market una dey sell dollar give.

is like you don't know the rate of decay (corruption) in Nigerian banks, the bdc is existing to checkmate the bank actors but before this current government? Both the bdc and banks are in collaboration to exploit the masses but now, the real essence of their existence will come to limelight. Sell dollar to them and ensure they do not sell above a certain percentage rate . 1.5%.while the banks can do what they like . Open market but will have no choice than to stay competitive ensuring their rate stay in line and not too high to that of bdc .
A win win for the economy. The bank has been tamed .
Remember, they are also to expand their capital base . So now, they are no longer in a huge profit ,had to work hard to meet the target . No more lavish spending.

Bananapill:


See as government and BDC they do tete-a-tete. The government no well. Na black market una dey sell dollar give.

Register black market, They can't do without them, that is why they registered them

Dialpad:
Those keeping dollars.... Whats going on ?

I sympathize with those that purchased above 1300 hoping it will hit 2000+

Bad gamble

😂

WorldRichest:


Them go plenty for jail
I know at least 15 of Tinubu's boys who are past or current bank MDs, so Tinubu has lots of professionals and rogues to advise him. You cannot win Emilokan Tinubu in this game.

If you too think well, you go list at least 10 Tinubu boys who are or were bank MDs

Lol...trust me. The banks are ingenious. Shebi it's FX in the country they are going after? Expect people interested in those kinds of loans (which are legal by the way) to move their Dom FX to West African subsidiaries of the banks.

Fiscus105:



It's not crazy, at time when you use your own money to finance a business, you may not serious enough with the business, but wen you have money in the banks as collateral for loan you take from same bank, .....you would sit up and focus more on the business, for you to be able to repay your loan and gain profit.



Your mentality would be that, I'm using someone's money to do business and not my own money.

Just like when you are doing daily/ weekly contribution vs keeping your money in ur bank account.

You will work harder to pay contribution, why u might not so serious when u re taking ur savings to ur account in the bank.

I had a long drawn WhatsApp group conversation around this over this long public holiday. For me I understand the concept so it's fine by me. But people with none finance knowledge think of it as crazy. Why should I have 10m in the bank earning say 10% and go and take a 10m loan paying 12%. Trust me to a lot of non-finance people, that is pure cray-cray

GreatOchuks:
Plz someone should explain in layman's language..

It's like this.
I have $100,000 in my DOM account. I will now go to the same back that I want to take loan in Naira. Normally they will ask for collateral. I will use my DOM account with $100k as collateral.

I will then go buy more dollars and stockpile creating artificial scarcity to sell when the price goes up. (That's what most do)

Now CBN says all those kind of loan should be liquidated under 90days.

Meaning your $100K may be used to clear your Naira debt

LaIabobo:
Very good policy indeed. This is a policy that should have existed since way back

Like. Exactly
It made you wonder why this was not the status quo from way back.
How will you settle loans taken in Naira with Dollar in Nigeria?

airsaylongcome:


Lol...trust me. The banks are ingenious. Shebi it's FX in the country they are going after? Expect people interested in those kinds of loans (which are legal by the way) to move their Dom FX to West African subsidiaries of the banks.

My brother, you make me laugh out loud.
New actor is in town, hundreds of accounts have been frozen or suspended since the house cleaning by New CBN started.

For record, CBN is working toe-to-toe with ONSA.
Even the bank dare not share dividends as we speak.

Jagaban dey follow every fund wherever it is going or coming from. You don't want to know how many currency racketeers have their account frozen forever.

airsaylongcome:


Lol...trust me. The banks are ingenious. Shebi it's FX in the country they are going after? Expect people interested in those kinds of loans (which are legal by the way) to move their Dom FX to West African subsidiaries of the banks.

You will see how the game will play out. One thing is sure, these crooks in the banks cannot win Emilokan Tinubu in this game. He is a higher crook than they are and he has lots of financial crooks to strategize with him.

airsaylongcome:


No shakement. Now sef is the best time to buy

They are in sifia pains that mouth no fit talk...

airsaylongcome:


No shakement. Now sef is the best time to buy

Sell your family house and use it to buy dollars keep

ZUBY77:
I will start paying attention when naira returns to where this administration met it.

You may be dead by then

Paramount01:



Register black market, They can't do without them, that is why they registered them

Is that how other developed countries operate?

Mubiola360:
is like you don't know the rate of decay (corruption) in Nigerian banks, the bdc is existing to checkmate the bank actors but before this current government? Both the bdc and banks are in collaboration to exploit the masses but now, the real essence of their existence will come to limelight. Sell dollar to them and ensure they do not sell above a certain percentage rate . 1.5%.while the banks can do what they like . Open market but will have no choice than to stay competitive ensuring their rate stay in line and not too high to that of bdc .
A win win for the economy. The bank has been tamed .
Remember, they are also to expand their capital base . So now, they are no longer in a huge profit ,had to work hard to meet the target . No more lavish spending.

The corruption is the bank is enabled by govt.
If govt get head, no bank for do nonsense.
Na thunder go fire all bad govt institutions and those enabling corruption cancer will corrupt their body

airsaylongcome:


It's "technical" but there's something called Cash-backed loan where you use the money (in this case USD) you have in a bank as collateral to take a loan from the bank. It sounds crazy and weird I know. But it's a thing. So what CBN is saying is that Banks can no longer use FX as the Cash collateral for the loan.

Okay, thanks, I appreciate