₦airaland Forum

Temysteve:
better.
We can't start criticising him 4 dat now nd @ d same time we can't call it racism. Let's just wait nd see d reason y he choose to appoint notherners only

It remains an amusing irony that the same people that complain about a northern government also complain for convenience that there's no government in place for the past three months. How does anyone manage that contradiction. BTW, Nigeria has had a so called non-northern government for the past years and things didn't go well. What we really need is a working, functioning government.

Yes that is true. But there are now severe limits on how much can be spent abroad daily on these cards. These limits will adversely affect businesspersons.

Basically, Emefiele is trying as hard as he can to put bandages to cover the problem. While I'm a proponent of using the CBN to defend the Naira, I believe that such interventions should be done on a very limited basis. The primary way to defend the Naira is through a strong economy, not through the stifling measures that Emefiele has been implementing of late. (Granted, it isn't his fault whatsoever that the economy is weak.)

Image123:
Ogas jjman2322 and Antiparticle, don't Mastercards, Verve cards and other ATM cards pay for transaction from naira accounts?

Check the new conversion rate

Antiparticle:
Yes that is true. But there are now severe limits on how much can be spent abroad daily on these cards. These limits will adversely affect businesspersons.

Basically, Emefiele is trying as hard as he can to put bandages to cover the problem. While I'm a proponent of using the CBN to defend the Naira, I believe that such interventions should be done on a very limited basis. The primary way to defend the Naira is through a strong economy, not through the stifling measures that Emefiele has been implementing of late. (Granted, it isn't his fault whatsoever that the economy is weak.)

No, the limits are not severe. And CBN is not the one that ordered banks not to collect dollars, as stated in the OP. What's happening is basic ss1 Economics, the law of demand and supply. The demand for dollars is currently less than the supply.

Realdeals:
Okay, I did N213 today, the mallam even told me it will hit 160 this month.

But banks aint collecting no more nah.

Yes, the limits are severe. Here, we clearly see that the daily limits on ATM transactions is now $300 from $2500, and the annual limit is now $50,000 from the previous $150,000. For businesses and individuals that do a lot of international transactions, this can be crippling.

And yes, I know CBN claims they are not the one that ordered banks to not collect dollars (USD); this is clear. I would however state categorically that CBN's monetary policies is what pushed banks to stop collecting USD in cash. People are panicking about the value of the Naira, and as a result some are converting more of their Naira into USD and stashing it in their domiciliary accounts. Banks became pressured to stop accepting USD for this reason, I believe CBN pressured them to do this; you also realize that Emefiele strongly supports this move as though he proposed it all along.

Your assertion that demand for dollar is less than supply is only partially true-- it is only partially true because it is the banks' policy to not accept USD in cash that has artificially reduced USD demand (not the other way around), thereby bringing down USD's black market value (and increasing the Naira black market value). In reality though, the demand for the dollar is still high, the semblance of low demand is a mirage that is masked by the banks' policy.

Image123:
No, the limits are not severe. And CBN is not the one that ordered banks not to collect dollars, as stated in the OP. What's happening is basic ss1 Economics, the law of demand and supply. The demand for dollars is currently less than the supply.

Chinom:
[[s]quote author=Antiparticle post=36575165]While I'm somewhat indifferent about the tactics that Emefiele and the banking industry employ to protect the Naira, I am disappointed that he (Emefiele) spoke like an uninformed illiterate on a topic he should know more about.

It is absolutely not true that you will be arrested if you try to pay Pound Sterling or Euro into a US bank account. I really can't believe that this guy is the CBN governor! How clueless.

Usually if you try to pay Euro or Pound Sterling into a US bank account, the bank will either refuse it or convert it to US dollars at a rate of their choosing (and with your consent). I have done this before!

Wonders shall never end. Emefiele needs to read or talk to his counterparts abroad so he can learn. I weep for my country.

[/s]


I was really not in the mood to post any comment on NL today, but your choice of words really pissed me off. In your simple, naive and moronic mind, you made a very intelligent statement. In reality, what you posted is complete garbage. Emefiele's use of the word ' Arrested' was just intended to drive home his point to stubborn Nigerians who insist on paying in Dollar into their accounts and withdrawing Dollar whenever they wish despite the fact that our national currency is the NAIRA.
What Nigerian banks are doing now is exactly what obtains in US and Europe. If you bring in your dollars or Euros, the bank will just convert it to Naira and credit your Naira account. If you do not like that, take your dollar to the parallel market, change it to Naira and come and deposit in your Naira account. That is a brilliant decision. It's the only way we can save, as well regain respect for our own currency.
I would like the banks to even go a step further and close all domiciliary accounts in foreign currencies.

Emefiele knows what he's doing. You, my friend, is just a phony dickhead.

So what if one wants to buy from Abroad then? How does one go about it if I can't deposit dollars into my Dorm account?

Temporary Suspension of Foreign Currency Cash Deposits

Please be informed that due to the unavailability of outlets for managing foreign currency cash deposits, we have found it necessary to temporarily suspend receipts of foreign currency cash deposits into domiciliary accounts at all our branches nationwide from Monday, 3rd of August 2015.

In addition, foreign currency cash deposits into domiciliary accounts made prior to this notice will not be eligible for outward electronic transfer and can only be withdrawn as cash.

Please note that this temporary measure, does not affect electronic transfer of funds into or from your domiciliary accounts and, you will continue to have access to foreign currency cash withdrawals from your account.

Whilst we have had to take this step to temporarily suspend foreign currency cash deposits, we would like to assure you that we are working hard at finding alternative outlets and a quick solution to this situation.

Kindly accept our sincere apologies for any inconvenience this might cause.

Thank you for banking with us.
GTBank.

jjman2322:
I see there arent a lot of business men here or company owners.. Let me explain how things work before you keep applauding the CBN:

#1. In the USA, you dont need to deposit in other currencies because you can WIRE OUT YOUR USD to any country and they will convert it to their local currency.

What this means is that if im in USA, I have $50,000 USD in my account, i Can send that money to Japan, China, europe, etc.. This is not Possible with our NGN.. You can't wire Naira outside Nigeria without converting it first.. So the CBN governor is a donkey for comparing both countries.

Our currency is useless outside Nigeria. Some of you that have traveled out know you can't convert naira in UK, USA, China, however my dollars are good all over the world.

#2. This policy will lead to more unemployment. Lots of companies buy spare parts, machines from China, India.. Let me give you an example.

Say i need a new part for my machine, I get quoted $5,000 USD by a company in China.. The quickest most reliable way to pay them is to buy black market and deposit the cash in my DOM ACCT, then wire it off, and in 2 days they have shipped my part.

With the new policy changes, there is no easy way to pay for these parts.. LC's and Bill for collections are taking 3-4 months since the CBN does not have enough dollars for importers and manufacturers..

Let me explain in simpler terms:

If you wish to import raw material for production (which 100% of nigerian manufacturers do,(from plastic, to pharma, etc), then you have two ways of paying for the raw material:

LC = Letter of credit, which basically means the bank in Nigeria debits your account, then once the shipper ships he gets the funds..
Last year and two, LC's were getting approved in 1-2 weeks. Now it is taking 3-4 months, so many manufacturers now source black market funds to pay for raw materials.

Bill for collection basically means the shipper ships on credit and you submit the paperwork to the bank for payment. CBN usually approved the funds in 1-2 weeks, the last bill for collection submitted by my company took 4 months for approval. If it were not for black market we would have stopped production and had to lay off people.

Many of you aren't into business and you don't understand what is going on. Let me explain in simple terms.

What this simply means is that lets assume you have N5,000,000 and you want to go tour around and have fun in Europe:

Back then, you could convert your Naira into dollar, pay into dom acct, then travel and have fun.

Now the only OPTION is Naira card which now thanks to CBN has daily ATM limit of $300/USD per day, and maximum $50,000 per year spend per customer.

For the average poor person who never crosses the border, this doesnt affect them. However, many Nigerians need to access more than $300/day and $50,000/year.


Also, lets assume you want to buy a new car for your child in USA. Value of car = $20,000. Back then you go to mallam, buy $20,000 USD, send it to your child ($10,000 per day CBN LIMIT) and in 2 days your child buys the car. Now with the new rule your child better get used to taking the bus.

What the CBN effectively did is prevent many law abiding Nigeria from remitting funds abroad. Its kinda like banning driving at night because armed robbers operate at night.

For the average person , this policy is meaningless. For the rest of us business men who source parts, products abroad, we are in for hard times.

Goodluck all

Temporary Suspension of Foreign Currency Cash Deposits

Please be informed that due to the unavailability of outlets for managing foreign currency cash deposits, we have found it necessary to temporarily suspend receipts of foreign currency cash deposits into domiciliary accounts at all our branches nationwide from Monday, 3rd of August 2015.

In addition, foreign currency cash deposits into domiciliary accounts made prior to this notice will not be eligible for outward electronic transfer and can only be withdrawn as cash.

Please note that this temporary measure, does not affect electronic transfer of funds into or from your domiciliary accounts and, you will continue to have access to foreign currency cash withdrawals from your account.

Whilst we have had to take this step to temporarily suspend foreign currency cash deposits, we would like to assure you that we are working hard at finding alternative outlets and a quick solution to this situation.

Kindly accept our sincere apologies for any inconvenience this might cause.

Thank you for banking with us.
GTBank.

Antiparticle:
Yes, the limits are severe. Here, we clearly see that the daily limits on ATM transactions is now $300 from $2500, and the annual limit is now $50,000 from the previous $150,000. For businesses and individuals that do a lot of international transactions, this can be crippling.

And yes, I know CBN claims they are not the one that ordered banks to not collect dollars (USD); this is clear. I would however state categorically that CBN's monetary policies is what pushed banks to stop collecting USD in cash. People are panicking about the value of the Naira, and as a result some are converting more of their Naira into USD and stashing it in their domiciliary accounts. Banks became pressured to stop accepting USD for this reason, I believe CBN pressured them to do this; you also realize that Emefiele strongly supports this move as though he proposed it all along.

Your assertion that demand for dollar is less than supply is only partially true-- it is only partially true because it is the banks' policy to not accept USD in cash that has artificially reduced USD demand (not the other way around), thereby bringing down USD's black market value (and increasing the Naira black market value). In reality though, the demand for the dollar is still high, the semblance of low demand is a mirage that is masked by the banks' policy.

i still maintain that the limits are not severe and i stand to be corrected. Firstly, the banks not collecting dollars is TEMPORARY. Secondly, business goes on as not only one road(parallel market/BDC) that leads to successful business transactions.
Note that the CBN policy on dollar withdrawal is not new but as far back as April 15. Now $300 daily is for CASH withdrawal, not for online transaction. Online transaction can be done with either dorm or naira accounts. Also, the $50,000 annual doesn't apply to dorm account.

The clarification left might be, what if the business person doesn't have sufficient funds in his domiciliary account? i suppose transfers can be made into the account from other accounts at prevailing bank exchange rate.

Ahmed4002:
Ea pius

Boss mohamz! So this is you on NL!

vicadex07:
You see why PDP was wailing in the initial thread. They dont want the dollars they accumulated during election period to devalue.

Any PDP supporter on nairaland that doesn't see any good in this administration is "cursed"

I think u r d most cursed

Antiparticle:
While I'm somewhat indifferent about the tactics that Emefiele and the banking industry employ to protect the Naira, I am disappointed that he (Emefiele) spoke like an uninformed illiterate on a topic he should know more about.

It is absolutely not true that you will be arrested if you try to pay Pound Sterling or Euro into a US bank account. I really can't believe that this guy is the CBN governor! How clueless.

Usually if you try to pay Euro or Pound Sterling into a US bank account, the bank will either refuse it or convert it to US dollars at a rate of their choosing (and with your consent). I have done this before!

Wonders shall never end. Emefiele needs to read or talk to his counterparts abroad so he can learn. I weep for my country.


"You cannot go to the United States where the dollar is spent and try to pay pound sterling into an account, because you will be arrested. Neither can you go into the United States and carry Euros into that economy and tell them to pay it into an account for you; you will be arrested."

Yes your points are true.The American banks will not arrest you but will either reject the money or exchange it to the current exchange rates because such money is regarded as a recognized means of payment. What happened when you have Naira with you?
The CBN governor knows what he did since this was how it is done when my father did international trade.
you can only use a country money to pay for any transaction in the country period.

zik4ever:
Waoh this CBN Governor sure knows what he's doing or what do you think? Is it about APC and PDP too? Ha ha.

pesin wen dem warn am say him head go roll na im him giv himself brain

Emefiele has really impressed me, the amount of money that leaves Nigeria through the banking system for frivolous purposes is too much especially by the political class.

Look at that chap that said he wants to be in Nigeria and buy car for child in America of $20000. That is pure money laundering. That is how they pay school fees for their children abroad, rent mansions for them - they cannot stay in the hostel, give them living expenses that the ordinary citizen in those countries cannot dream of.

The children by the way will never work, they will be MD of a spurious oil company whose only contract is to receive subsidy money - another wayo of the same Nigerian government. They may also open a phoney NGO or a boutique and pay CNN to tell you how well they are doing on our money.

When they are sick nko - they pack much more, they just go and say, going to see my child as excuse - your child and other wife and family reside in a mansion which though you own you must pay property tax so in the long run if booted out of politics like some senators they end up having to sell the property - no more free bank loans.

Pastors too have long joined while they tell their congregation "e go better"

God bless Emefiele

20 Hours electricity.
I can personally attest to having 20 hours electricity some days now.

jjman2322:
I see there arent a lot of business men here or company owners.. Let me explain how things work before you keep applauding the CBN:

#1. In the USA, you dont need to deposit in other currencies because you can WIRE OUT YOUR USD to any country and they will convert it to their local currency.

What this means is that if im in USA, I have $50,000 USD in my account, i Can send that money to Japan, China, europe, etc.. This is not Possible with our NGN.. You can't wire Naira outside Nigeria without converting it first.. So the CBN governor is a donkey for comparing both countries.

Our currency is useless outside Nigeria. Some of you that have traveled out know you can't convert naira in UK, USA, China, however my dollars are good all over the world.

#2. This policy will lead to more unemployment. Lots of companies buy spare parts, machines from China, India.. Let me give you an example.

Say i need a new part for my machine, I get quoted $5,000 USD by a company in China.. The quickest most reliable way to pay them is to buy black market and deposit the cash in my DOM ACCT, then wire it off, and in 2 days they have shipped my part.

With the new policy changes, there is no easy way to pay for these parts.. LC's and Bill for collections are taking 3-4 months since the CBN does not have enough dollars for importers and manufacturers..

Let me explain in simpler terms:

If you wish to import raw material for production (which 100% of nigerian manufacturers do,(from plastic, to pharma, etc), then you have two ways of paying for the raw material:

LC = Letter of credit, which basically means the bank in Nigeria debits your account, then once the shipper ships he gets the funds..
Last year and two, LC's were getting approved in 1-2 weeks. Now it is taking 3-4 months, so many manufacturers now source black market funds to pay for raw materials.

Bill for collection basically means the shipper ships on credit and you submit the paperwork to the bank for payment. CBN usually approved the funds in 1-2 weeks, the last bill for collection submitted by my company took 4 months for approval. If it were not for black market we would have stopped production and had to lay off people.

Many of you aren't into business and you don't understand what is going on. Let me explain in simple terms.

What this simply means is that lets assume you have N5,000,000 and you want to go tour around and have fun in Europe:

Back then, you could convert your Naira into dollar, pay into dom acct, then travel and have fun.

Now the only OPTION is Naira card which now thanks to CBN has daily ATM limit of $300/USD per day, and maximum $50,000 per year spend per customer.

For the average poor person who never crosses the border, this doesnt affect them. However, many Nigerians need to access more than $300/day and $50,000/year.


Also, lets assume you want to buy a new car for your child in USA. Value of car = $20,000. Back then you go to mallam, buy $20,000 USD, send it to your child ($10,000 per day CBN LIMIT) and in 2 days your child buys the car. Now with the new rule your child better get used to taking the bus.

What the CBN effectively did is prevent many law abiding Nigeria from remitting funds abroad. Its kinda like banning driving at night because armed robbers operate at night.

For the average person , this policy is meaningless. For the rest of us business men who source parts, products abroad, we are in for hard times.

Goodluck all

bar man! One bottle of extra chilled orijin. He spoke well

I'm glad I contributed to this change , things are working perfectly for NIGERIA even without a minister , Buhari is a blessing to our dear country ... May baba live longer ... Love you Buhari

Abeg, time for talk don finish, is this how you guys will rule Nigeria? on the online media. You can only use propaganda to deceive people, you cannot use it to convince people. Please stop talking and go thinking because everything has gotten worse. We have not seen any change YET. I am not a party patriot but i am only telling you the reality. Before the deceived change the minds please get something done.

The CBn governor has done very well. Let's hope and pray other sectors of the economy responds positively to this development

Please GO TO WORK, the DECEIVED ARE breathing their last Patience. Please let the LIES get to market place and drop prices of FOOD items.

Please check this!!!

Antiparticle:
Yes, the limits are severe. Here, we clearly see that the daily limits on ATM transactions is now $300 from $2500, and the annual limit is now $50,000 from the previous $150,000. For businesses and individuals that do a lot of international transactions, this can be crippling.

And yes, I know CBN claims they are not the one that ordered banks to not collect dollars (USD); this is clear. I would however state categorically that CBN's monetary policies is what pushed banks to stop collecting USD in cash. People are panicking about the value of the Naira, and as a result some are converting more of their Naira into USD and stashing it in their domiciliary accounts. Banks became pressured to stop accepting USD for this reason, I believe CBN pressured them to do this; you also realize that Emefiele strongly supports this move as though he proposed it all along.

Your assertion that demand for dollar is less than supply is only partially true-- it is only partially true because it is the banks' policy to not accept USD in cash that has artificially reduced USD demand (not the other way around), thereby bringing down USD's black market value (and increasing the Naira black market value). In reality though, the demand for the dollar is still high, the semblance of low demand is a mirage that is masked by the banks' policy.

I was applauding the cbn governor action initially until I read your posts and points but please I will like to ask. What will the banks do now with the huge amount of us dollars in their vaults?

vicadex07:
brainless buffoon. Continue licking the asss of that balless otueke kleptomaniac.

Bleep you!APC Myopic and gullible fool

derecho:
Unfortunately, this means nothing to the poor man on the street. The price of foodstuffs hasn't reduced. The elections are over please. Nigerians are not interested in all these propagandas.This should translate to cheaper foodstuffs,we should buy kerosene cheaper than before if the refineries are now working.

But you were very interested when the price was ridiculously high abi?

sketcherJ:
Is dis a feat of buhari? Or isn't it circumstantial..banks just got a little wiser!!its good though!did buhari release a presidential proclamation for banks to stop accepting dollars?..it could have happened under any 1,s regime?....._ u are all shouting sai buhari..I am just laffing at u..don't get me wrong..I don't hate buhari..I dislike false pretences u people are showing!!!

Decisions bordering on Financial Policy especially FOREX needs vetoing by the Executive Head.
The role of the Finance Minister & CBN Governor is strongly advisory, coordination & Intel provision.
So, you could understand where PMB comes in & why he needs to be credited small.

I reason why the past PDP administration didn't execute/implement this kind of solution/policy was because it stifles & devalues their loot.
Hence, they rejected that route because they love themselves more than us.

But I quite agree that it's not yet uhuru!!!

The real value of an economic system's fiduciary is mostly & truly determined by the products & services measured in terms of GDP/per capita income.

I still dey learn shá

NgeneUkwenu:
omenka
passingshot
midolian
abduljabbar4
HungerBAD
koboko69
donphilopus


Another feat!!

You no mention me abi? Next time I go vex for you...Wailers won't like these one at all...

JustCalMeDBoss:
The only person who should be credited is the CBN govenor but the masturbators masturbate their thought into thinking its the dullard

wailers and apcshit are all dullards, this is the work of the cbn governor but under buhari government.

Realdeals:
Pound N263, Lagos airport BDC

This is a lie. I did 303 yesterday via worldremit which uses almost official rate. The black market rate can't be lower than official rate.

9jagoodman:
Abeg, time for talk don finish, is this how you guys will rule Nigeria? on the online media. You can only use propaganda to deceive people, you cannot use it to convince people. Please stop talking and go thinking because everything has gotten worse. We have not seen any change YET. I am not a party patriot but i am only telling you the reality. Before the deceived change the minds please get something done.

what has gotten worse without influence from previous gov.

AhmadMind:
[size=16pt]Thank you brother ..... Decode Decode Decode!![/size]

[size=28pt]The buy and sell on parallel market DOES NOT AFFECT THE FOREX RESERVES!![/size]


[size=18pt]#Commonsense...... If every nigerian went online and started purchaching goods at CBN rate... How will CBN meet the obligation to convert at 199=$1??

It will put so much pressure on the Forex Reserves..... The buy and sell on parallel market DOES NOT AFFECT THE FOREX RESERVES!![/size]

And it is so difficult to adjust the official rate? Think.