₦airaland Forum

greatiyk4u:
Same story all the time
They know where to source for dollars

grandstar:
From the tone of the article, it did not start yesterday. It has been going on for long.

When Soludo introduced a flexible exchange rate policy, the BDC's were used to get forex to the end users directly and bypass the banks.

It seems with a floating exchange rate regime, things work differently.

Kukutente23:
People going to banks to do FX transactions will not improve forex supply for BDCs. The report is about a drop in supply for BDCs not drop in demand.
You are mixing things up

Kukutente23:
What were they using before?
BDCs have existed since the 70s

Kukutente23:
Which one are we doing now?

Is it floating exchange rate or managed float?

DrAda:
Good. I hope it stays that way. The naira has stabilised, and hopefully, in time, it will grow stronger against the dollar. This showe that BDCs are not needed.

Kukutente23:
You mean BDCs started to exist in Nigeria in 2017?
I'm impressed by your knowledge

Truth234:
You don't understand how the forex market works. The BDC operators have been accused of hoarding the greenback and subsequently using their forex allocations to speculate market.

This practice has been blamed as one of the bane of Nigeria's foreign exchange challenges. Hence, why the CBN took that power from them by cutting their supplies. They should go and source for their forex and do whatever they like with it.

People can now approach banks and access forex at the official rate. Since that has been done, is forex not now stable?

erniok:
Your ignorance is amazing.

Question for you is what financial services that BDCs offer that financial institutions do not cureently offer that would cause your rate divergence in coming weeks as you postulated.

erniok:
Your ignorance is amazing.

Question for you is what financial services that BDCs offer that financial institutions do not cureently offer that would cause your rate divergence in coming weeks as you postulated.

Dotherightthing:
This may be one of the reasons they are angry with Tinubu

erniok:
Your ignorance is amazing.

Question for you is what financial services that BDCs offer that financial institutions do not cureently offer that would cause your rate divergence in coming weeks as you postulated.

Emeskhalifa:
You still don't get it?

Bye bye to the middlemen (BDCs) coz customers now prefer to do their thing by themselves from the tap of their phones.

As if that's not enough, CBN has now cut them off from get dollar cash, meaning CBN is indirectly pushing customers to opt for the direct dollar transfer on their phone instead of looking for cash upandan.

What this means is that the cost if running BDCs will be too much and the profit will be extremely small since patronage will be low, and sourcing for dollar outside CBN will be higher

Dotherightthing:
This may be one of the reasons they are angry with Tinubu

Putindbutt:
If not that you're married, I for chase you enter ya papa house give you ring.
The BDCs became too powerful and corrupt. I won't say more than that.

Kukutente23:
Yes until the demand rises sharply again
It is the demand that drives BDC up
That's what CBN countered with direct supply
If their demand goes up again, there will be a divergence
Or you think demand will remain this way?

Emeskhalifa:
Can you give some reasons why demand will suddenly go higher?

Kukutente23:
For one have you ever heard of politicians sourcing for forex?
What about those who want to change hard currency to naira and vice versa?

YesDaddyTill203:
Most people are no longer using these BDCs.
I don't even bring in cash anymore when coming to Nigeria. Everything is online.
They will have to go out of business or find other ways to do business.

Thanks to Tinubu, the black market rate and official rate are now closer than ever.

Emeskhalifa:
Except it's for money laundering, else I just told you they can make transfers. Infact, even the Naira debit cards can now handle international transactions.

Is just like going to POS people now to source Cash of 10 million, what exactly do you need cash of 10 million for when you can easily transfer it from your bank to the next person's bank?

Well I am not surprise you mentioned Yahoo boys and politicians

Kukutente23:
You didn't explain how it won't
You don't seem to have good comprehension capacity
What is the relationship between BDC demand for foreign currency and using naira cards for international transactions?

olyrayy:
How do you buy USD online?

YesDaddyTill203:
Most people are no longer using these BDCs.
I don't even bring in cash anymore when coming to Nigeria. Everything is online.
They will have to go out of business or find other ways to do business.

Thanks to Tinubu, the black market rate and official rate are now closer than ever.

Basicend:
Lol! When an Huasa / Fulani president comes in after Tinubu, he will re-create a biz space for them, and make that niche flourishing again.

During Buhari regime, the major BDCs were cashing out about #350 to #400 per dollar on every transaction due to d huge variance between official and black market rates.