₦airaland Forum

TeOwl:
ATM - are you outside Nigeria? I have some things to pay online in January 2016... i am wondering how i would do with this issue now.

anigold:
The forex part is scary like I have some good amount of usd in ny forex account but I cant withdraw.. its scary..
For those that voted for chain una wicked...
The masses are suffering while the looters are smiling...
The policy of cbn is very harsh...

iykedare:
Suspended foreign exchange deposits into domiciliary account? I'm expecting my school in Canada to refund my tuition. Hope there won't be a problem since they have suspended foreign exchange deposits into domiciliary accounts?

rusher14:

I still withdraw USD from my dorm account.

kmcutez:
So what banks can you still withdraw dollar inflows over the counter. I've been hearing a lot of conflicting information.

olafusimic:
My friends, there is only one thing the CBN is trying to protect: the foreign reserve.

It should stop using the outdated managed float exchange rate policy. Advanced countries freely float their exchange rate. If we keep pegging the dollar to N197, not even a $60 billion foreign reserve will save us. It will eventually run out. And all this demand control mechanism is not economically sound, just a way of pushing the inevitable forward.

I understand that Emefiele doesn't want the political pressure that will come with having the naira exchange at the prevailing market rate and let the foreign reserve be used for more strategic and nation building purpose. But this stopping all online payment denominated in foreign currency is economically more damaging and unsustainable.

A sound economy is built on trade. You focus on where your comparative advantage lies. Even if we try to build everything we need, it will take us decades to have high tech industries that build useable cars (not assemble them) or a mobile phone. And that is like going back to the stone age where everyone built everything he needed himself.

It's unfortunate that in this modern days, when other forward thinking countries are building capacity for high value industries and shifting low value production to other less forward thinking countries, our country is obsessed with going back to the 18th century when you avoid banks and governments.

We borrow to pay salaries and oil subsidy, instead of building infrastructure that will grow our production/economic capacity.

The only way to make things better is to improve the supply side. Give Nigerians constant electricity (even if you have to borrow from IMF to do it) and watch businesses rise and bloom. Make it easier for businesses to start and run, not increase taxes and fining the few doing well. Set up industrial research institutes and promote innovation, not funding snail business and poultry farming seminars for NYSC people (did they spend 5 years in Uni to go start snail farming?).

No country grows by sharing the nation's fortune among a few and transferring pain to the masses.

uchetobi:
I bought PTA on the 27th of nov 2015 from Stanbic ibtc at Idejo, Lagos. That same day union was selling, travelex was selling and ecobank was also selling
I wasn't embarking on any holy pilgrimage

uchetobi:
I bought PTA on the 27th of nov 2015 from Stanbic ibtc at Idejo, Lagos. That same day union was selling, travelex was selling and ecobank was also selling
I wasn't embarking on any holy pilgrimage

diva90:
Did they give the PTA to you in cash or card?

Caracta:
Makes no sense. Do you want travellers to suffer?

You suspended PTA/BTAs. You cut down daily withdrawal limit on mastercards used abroad. You suspended foreign currency deposits into domiciliary accounts. You placed limits on western union and moneygram outbounds.

Now this? I laugh.

dapsonlou:
Some People will come here and start Screaming Dullard. The previous administration Looted all our Dollars. Even the Election was paid for in Dollars

Billygee2u:
Nigeria is fast collapsing.I can't collect my money here since last week with GTBank MasterCard.
The worst is that GTBank didn't notify me about this new change.
Nigeria I weep for you.

rebranded:
This move will force dollar to move above 300 naira

Doesnt CBN get it that dollar is scarce in the country

Please where is Soludo to come and advice thesee guys

dammieplus:
I think we can spend time educating ourselves on foreign reserve/exchange and what the implications of spending foreign currency. A country can print whatever amount of its local currency it wishes to; its consequences are local inflation and consequently weakening of its local currency. Of course, one cannot print another country's currency.
So how does Nigeria gets forex? We get forex by exporting crude oil, the foreign currency received is kept by CBN, which it pays out in naira equivalent to the Government. Our foreign reserve got to as high as about 50 billion USD about a decade ago, ideally it steadily grows, but now its about a half of that.
The Foreign reserve ideally is used to back up a local currency, and defend the local currency (keeping the exchange rate steady). In import-dependent countries like ours - it is also used to finance importation. Importers buy these foreign currency from CBN, and use it to buy stuff abroad (paying the CBN in Naira, thus depleting dollar which is only refunded by Oil Export). Most other countries do not to use their need foreign reserve to finance importation, as the forex businessmen receive from Exportation could take care of importation needs. This is not so for Nigeria.
So when the foreign reserve is depleted, and the foreign earning is minimal: One simply do not have enough forex (dollars). And you have to decide what to do with your limited dollars, whether to import fuel, or chicken or build your reserves again (but not all at the same time). It gets worse when you are trying to defend the value of the Naira.

This is a bit i learnt recently. Please feel free to correct any misconceptions .... I am constantly learning.

TheGoodJoe:
It frightens me now. I am not joking. I am literarily frightened at the level of ignorance of today's youths.

What we are facing today is the careless [b]mismanagement of the economy under GEJ. I remember during the election when Bullion vans drove wildly repeatedly for months on the streets of Port Harcourt with the stolen wealth of the Nation.

Did any body expect such wastage not to have a negative effect on the economy. Goodluck wasted a windfall that would have buffered the system from this kind of situation. But, no, they must steal in Billions of dollars.

Now everyone is shouting Buhari is a dullard. Is he the one that mismanaged the economy?

Nigerians should understand we are in a frightening situation caused by absolute neglect and wickedness of the past government and pray they can do something to salvage the situation.[/b]

rebranded:
This move will force dollar to move above 300 naira

Doesnt CBN get it that dollar is scarce in the country

Please where is Soludo to come and advice thesee guys

ThisMeansWars:
When APC was complaining about dollarization of our election .. Ediotic PDP sychophants told em to shut up.. No wonder their hero left when he lost ...

Lunatics ..

Favolly:
As in!!

This is what happens when we had inept people in power that robbed Nigeria blind while the price of crude oil continued to plummet without any plans to diversify our reliance on oil

Truth be told, all the previous Nigerian presidents are just as guilty because none of the past administration put any plan in place for life after crude oil … As long as crude oil prices continue to drop Nigeria will struggle with having enough $$$ in its coffers. The average Nigerian doesn’t understand that there's a liquidity issue in the Nigerian banking sector, and if you make a foreign purchase with your Nigeria debit card, your Nigerian bank cannot remit the forex to the merchant because your bank is unable to access enough forex from the CBN that they need to cover forex transactions.

I'm not even shocked that most people on here don't get it, no be nairaland again? We have no forex o! It's sad that it's affecting us all but it's the result of poor leadership in the past. And no, this one cannot even be fixed in 2 years! Not while Goldman Sachs is predicting $20 per barrel and our economy is still not diversified.

The day of reckoning has come! Big boys and girls depending on their oil wealth will soon come down to earth. The lavish weddings and garrish gawdy display of money will soon come to a screeching halt. I actually shudder at where we are headed. The desperately poor living in grinding poverty will start laughing at the former olowos in Swahili

The dollar rationing is only going to get worse next year. We all need to tighten our belts and brace ourselves for harsh economic winds .

Favolly:
As in!!

This is what happens when we had inept people in power that robbed Nigeria blind while the price of crude oil continued to plummet without any plans to diversify our reliance on oil

Truth be told, all the previous Nigerian presidents are just as guilty because none of the past administration put any plan in place for life after crude oil … As long as crude oil prices continue to drop Nigeria will struggle with having enough $$$ in its coffers. The average Nigerian doesn’t understand that there's a liquidity issue in the Nigerian banking sector, and if you make a foreign purchase with your Nigeria debit card, your Nigerian bank cannot remit the forex to the merchant because your bank is unable to access enough forex from the CBN that they need to cover forex transactions.

I'm not even shocked that most people on here don't get it, no be nairaland again? We have no forex o! It's sad that it's affecting us all but it's the result of poor leadership in the past. And no, this one cannot even be fixed in 2 years! Not while Goldman Sachs is predicting $20 per barrel and our economy is still not diversified.

The day of reckoning has come! Big boys and girls depending on their oil wealth will soon come down to earth. The lavish weddings and garrish gawdy display of money will soon come to a screeching halt. I actually shudder at where we are headed. The desperately poor living in grinding poverty will start laughing at the former olowos in Swahili

The dollar rationing is only going to get worse next year. We all need to tighten our belts and brace ourselves for harsh economic winds .

NavierStokes:
Only 5 months ago the complaints was about the system being over-saturated with dollars and banks having their vaults so stashed with dollars that they have to start rejecting forex deposits. A few months later the complaints is about dollar scarcity, how did we move from one position on the financial rectangle to a diagonally opposite point on the same rectangle in 5 months.

mbulela:
Dude it is a serious matter o.
At this rate the dollar will easily reach 300 by next weekend. travellers will have to fund their trips by cash. So if dollar is scarce via official routes, the black market will have to make a way.

iykedare:
Suspended foreign exchange deposits into domiciliary account? I'm expecting my school in Canada to refund my tuition. Hope there won't be a problem since they have suspended foreign exchange deposits into domiciliary accounts?

onatisi:
that is where I must give the cbn governor credit for a wonderful job done so far.in the absence of any economic policy or direction the cbn governor has taken steps to try and protect the naira ,things would have been different if the fg had formulated sound economic recovery plans this would have sent the right message of hope to investors . What the cbn gov is trying to do now is to allocate the scarce dollars available to only important importers and under this category falls oil marketers and importers.the only way to go now will be to ban completely the importation of many more items as this may save some dollars. Whichever way or decision the fg makes it is definitely going to bring untold hardship to Nigerians and massive job losses

Caracta:
Only cash transactions are affected. Your school can make a transfer. You don't need to worry.

NavierStokes:
How will they get it dear how will they get it. This can not be explained off lightly what we are seeing is a reflection of the ineptitude of the present administration. Only 5 months ago the complaints was about the system being over-saturated with dollars and banks having their vaults so stashed with dollars that they have to start rejecting forex deposits. A few months later the complaints is about dollar scarcity, how did we move from one position on the financial rectangle to a diagonally opposite point on the same rectangle in 5 months. It was pointed out here at the time, the consequences of their actions but they didn't listen especially when they are spurred on here by their followers who up till now are yet to wake up to the realization that this pilot doesn't even have the coordinates of our destination. The issue here is the politics being played with our nation's destiny, what is a Prof. Pat Utomi or Chukwuma Soludo doing at home while a BSc. Student nominated by OBJ is manning our economic affairs at such a critical phase of our existence?

modath:
3 things.

1.Same chukwuma Soludo gave us the impression that our banks were solid & made some of us lose good money in right offers of banks' shares.

2. Kemi Adeosun is not OBJ's nominee & don't let sentiments blind you to the fact that the TSA idea came from her.. Havard didn't do us any good, Dasukigate et al dey dia!!

3. Kindly refer us to a time in our history that we've experienced this kind of near economic meltdown, also bearing in mind the excessive desire for ALL thing foreign & with the likes of shoptomydoor & mallforafrica ( & the occasional free shipping) making such desires reality...

TeOwl:
Diamond bank sent me an email that my ATM card can no longer work in any ATM/POS in China, UAE and every African country (asides Nigeria of course).