₦airaland Forum

CBN Issues Fresh Order To Bdcs, Dealer Banks On Forex Purchase | #Politicsnigeria

Bureau de Change operators and Authorised Dealer Banks have been directed to only purchase up to $25,000 FX for their weekly operations.

The approval was given to them in a new guideline released by the Central Bank of Nigeria (CBN).


The apex bank in its guideline explained that this would help the operators and ADBs to meet the demand of the retail market.

WJ Kanya, the acting director of trade and exchange at the apex bank highlighted the requirements for compliance with the directive for transparency and prevention of the misuse of FX.

With the new CBN’s guidelines, the BDCs are to source for forex from a single ADB per week.


This is aimed at preventing activities that could be speculative and in addition ensuring proper oversight functions.

“Authorised dealers must submit weekly reports of their forex sales to BDCs in a specified Excel format to the CBN Trade and Exchange Department via teddmo@cbn.gov.ng. BDCs must render daily returns on forex purchases and sales (utilisation) through the Financial Institutions Forex Reporting System (FIFX).

“These measures will help the CBN track forex flows and prevent illicit activities in the currency market,” the CBN stated.

According to the CBN, the operators are only permitted to disburse forex for a maximum transaction of $5,0000 per quarterly transaction

This include business Travel Allowance (BTA)/Personal Travel Allowance (PTA), Overseas school fees and Overseas medical fees.

Source : https://politicsnigeria.com/cbn-issues-fresh-order-to-bdcs-dealer-banks-on-forex-purchase/

What was the previous amount?

LOL

Funny enough, dollar Don stable this past few months, even dropped a bit.

Kosiso12:
CBN Issues Fresh Order To Bdcs, Dealer Banks On Forex Purchase | #Politicsnigeria



Source : https://politicsnigeria.com/cbn-issues-fresh-order-to-bdcs-dealer-banks-on-forex-purchase/

Good 👍

Thought the president said what has we got to do with dollar exchange rate? He said are we spending dollar? He said the farmers will make more money, he said its his turn

This include business Travel Allowance (BTA)/Personal Travel Allowance (PTA), Overseas school fees and Overseas medical fees.

..if you check our trade. You will see that our foreign trade is balance.

Foreign loans is what is killing our economy. The borrowed funds are squandered. While Nigerians repay them with suffocation to reserve.

ok.

Anyway, Agriculture is life

noobody:
What was the previous amount?

Exactly

To be sincere, i see no reason why the FG is selling dollars to BDC. If anyone needs dollars for business, let them use the bank payment method to make the purchase. If you want to invest, buy gold, real estate, or agriculture. FOREX shouldnt be used as a store of value! They just create unnecessary scarcity and make it look like the demand is high whereas its just sitting in some people's bank account or wardrobe.

The same jagajaga economics is why Nigerians are buying Naira from POS. Why the fvck can't the bank fvcking do their damn jobs! Why should POS agent have cash and banks do not? Why can't I fvcking withdraw cash at the ATM. And instead of the stupid govt to even make epayment seamless, they're adding EMTL fee and the transfers that used to be free now requires you to add money to it.

Very stupid govt.

Sheuns:
LOL

Thats your contribution to the topic?

This policy will only take us back to where we are before now...just let the Fx flow freely...allow the market to determine the price ,allow buyers and sellers to do transaction with minimal interface..has the largest forex contributor into the economy allow the IOCs to pay you in naira ..while.they buy the naira and pay the government..they can only buy the naira from the general public...this economy thing is not a rocket science..just do thinga the right way and the system will stabilize it's self .. simple..all this regulations I just to make some ppl rich .

saintbillion:
Thought the president said what has we got to do with dollar exchange rate? He said are we spending dollar? He said the farmers will make more money, he said its his turn

truly we got nothing to do with dollar if we can get things right

Chevrolet076:
Exactly

To be sincere, i see no reason why the FG is selling dollars to BDC. If anyone needs dollars for business, let them use the bank payment method to make the purchase. If you want to invest, buy gold, real estate, or agriculture. FOREX shouldnt be used as a store of value! They just create unnecessary scarcity and make it look like the demand is high whereas its just sitting in some people's bank account or wardrobe.

The same jagajaga economics is why Nigerians are buying Naira from POS. Why the fvck can't the bank fvcking do their damn jobs! Why should POS agent have cash and banks do not? Why can't I fvcking withdraw cash at the ATM. And instead of the stupid govt to even make epayment seamless, they're adding EMTL fee and the transfers that used to be free now requires you to add money to it.

Very stupid govt.

The Government is not selling dollars to BDC’s. If you read the article, you would see the BDC’s are to go buy from the Banks.

porthouse7:
truly we got nothing to do with dollar if we can get things right

What policies has been put in place to encourage local productions? Instead na tax, tax and billings.

How can dealer banks and BDCs work with $25,000 weekly? Is that not unrealistically too small?

Cardoso and all these trial and error schemes.

masseratti:
This policy will only take us back to where we are before now...just let the Fx flow freely...allow the market to determine the price ,allow buyers and sellers to do transaction with minimal interface..has the largest forex contributor into the economy allow the IOCs to pay you in naira ..while.they buy the naira and pay the government..they can only buy the naira from the general public...this economy thing is not a rocket science..just do thinga the right way and the system will stabilize it's self .. simple..all this regulations I just to make some ppl rich .

Lol. If IOC’s pay CBN in naira, then how do we build our reserves to service foreign debts? You see why what you wrote there makes little sense?

dessz:
Funny enough, dollar Don stable this past few months, even dropped a bit.

Stable at 550 your APC Tinubu met it or where?

Basicend:
How can dealer banks and BDCs work with $25,000 weekly? Is that not unrealistically too small?

Cardoso and all these trial and error schemes.

It should be enough for BDC’s. All Cardoso has to do now is encourage Banks to activate their naira cards again so people can use dollars directly at the official rate from the Banks. Then ban dollar cash of more than $200.

GeneralDae:
The Government is not selling dollars to BDC’s. If you read the article, you would see the BDC’s are to go buy from the Banks.

The government sell dollars to the BDCs via the authorised dealer banks. That is why it is limited to $25k

GeneralDae:
It should be enough for BDC’s. All Cardoso has to do now is encourage Banks to activate their naira cards again so people can use dollars directly at the official rate from the Banks. Then ban dollar cash of more than $200.

Hmm. In effect, they are honestly trying to face out BDCs.

If banks activate their debit cards for FX, they always have a cap on it. Maximum $200 to $500 daily or $1,000 / month.
That cannot be sufficient for SMEs that do daily importation. And, since they cant access it from CBN or any other approved trading window. The liquidity challenge still prevails.

Irony1:
The government sell dollars to the BDCs via the authorised dealer banks. That is why it is limited to $25k

BDC’s are supposed to get from Banks. That’s how it’s done all over the world and that’s what Cardoso is implementing. Banks too are encouraged to bring in their own FX and when they do BDC’s would definitely also buy from them.

Cc

These stupid lazy BDCs will fizzle away! They should invest their money in the real sector.

dessz:
Funny enough, dollar Don stable this past few months, even dropped a bit.

And we lost over $1bn in fx reserves.

NothingDoMe:
And we lost over $1bn in fx reserves.

Yes but we also gained $8 Bn in 8 months.

Pls my nairaland people..

Pls I need help of 2000 Pls 🙏

Suffering will not be anyone portion in this house in jesus name

9026244874 Opay it's my WhatsApp number also
Thanks

Shollez:
Pls my nairaland people..

Pls I need help of 2000 Pls 🙏

Suffering will not be anyone portion in this house in jesus name

9026244874 Opay it's my WhatsApp number also
Thanks

Dem use begging swear for you and your likes ?
Bloody lazy youth

GeneralDae:
Yes but we also gained $8 Bn in 8 months.

and losing Almost 1.2 Billion in 3 weeks defending the Naira

That means our gains will be wiped out in 6 months

GeneralDae:
Yes but we also gained $8 Bn in 8 months.

Basically, we want to lose the gains?

A steady downward drop is not a good economic indicator, especially for foreign investors.

NothingDoMe:
Basically, we want to lose the gains?

A steady downward drop is not a good economic indicator, especially for foreign investors.

But it’s just a one month trend who says it won’t pick up again soon?