₦airaland Forum

Please pardon my lack of understanding but I had assumed the banks should charge at the officially CBN rate.
I would want someone to enlighten me on why bank are allowed to make abnormal profit at the expense of the masses.
Why are the banks not charging at CBN rates?
I used my naira master card last month for an online transaction and got charged virtually same price as black market and couldn't understand the rationale for this.
Please someone who truly understands how this works and the basis for this policy, if its legal should help throw some light on this.

Thanks everybody!!!

Sometimes they charge higher than parallel rates sef. Someone once lamented how one of them charged him as high as N350 per dollar. FG has never sanctioned any bank for selling higher than CBN rate.

Beats me too...

PMB is supposedly fighting 'corruption'.. whilst these banks are 'aiding' his fight by fleecing us.. how quaint.

Buhari will not probe that one since it concerns economics.
You know he is not good at economics.

It's a fraudulent practice right under the Angelic government.

This is another official corruption like the case of legalizing 'Black Market' filling stations across Nigeria, where fuel sells above the official pump price.

Corruption everywhere you GO.....

This is terrible

Buhari

The banks are now permitted to source for the greenback themselves, not like before where they were offered via the DAS (Dutch Auction System) of the CBN.

When they source from the CBN, they're bound by the law to charge at that rate or slightly higher than the rate at which CBN sold it to them, but now CBN stopped the auction system partly due to the fact that our foreign reserves have been depleting since the fall in crude prices, and so therefore banks are mandated to source for it themselves. They're not bound by the CBN official rates anymore but by the blackmarket rates.

It's so painful, heard from my colleagues that one certain bank was even charging NGN398 to $1.

May God deliver us from these banks.

Them suppose na. Especially for students schooling outside naija

Everything will soon be fine In Sha Allah. If you kuku ask banks, dem go c sumtin talk.

Its nothing more than corruption

Apc government and corruption be like beans and bread. They work hand in hand

Them suppose na. Especially for students schooling outside naija, E for make sense

If I tell you that I'm not tired of this country then I'm lying. In contrast the citizens of this country are such a happy people. They easily adapt to whatever anomaly they find themselves no matter the absurdity.

It's just wickedness. Bloody Capitalists

Everything under this useless APC government na scam.now I believe in the saying,that the devil u know is better than the saint u don't know.Neveragain!!!

I was charged for 330 per usd..Buhari pls take note

The reason is that banks have to source the dollar themselves. The CBN sells only a limited amount to them every week. The banks have to buy at black market rates just like you do so they have to at least break even if not make a profit.

They are not supposed to charge at parallel mkt rate. But Nigeria banks are shadow criminals. They also charge higher than the official rate when u send via western union or moneygram.

Nairadays:
The banks are now permitted to source for the greenback themselves, not like before where they were offered via the DAC system of the CBN.

When they source from the CBN, they're bound by the law to charge at that rate.

And the 'Greenback' allows that margin ?


N197/$ => N360/$, 83%

That Greenback must be fraudulent.

Foget our banks..

They are online and on the phone armed robbers...

Banks are thieves in disguise na

official rate is the rate CBN sells dollars, dollars come mostly from our oil revenue which has gone down drastically .the cbn does not sell to banks as before anymore. so they are sourcing for d dollars dem selves. banks being capitalist will charge wat they lik afterall pple will still pay it

Firefire:
And the 'Greenback' allows that margin ?


N197/$ => N360/$

Firefire, am not an economist.

Please see my edit.

Should we say the market has been deregulated. I don't know.

Am just coming from the banks around my working place, asking them can i send money outside Nigeria via Western Union, since WU will mostly charge NGN225 to $1, at least it will help. But 2 of the banks says they've put sending out money via western union on hold. Mtcheww. Only 1 bank says it allows Moneygram only if i have an account with them.

lol

Lol

Good question

To get the official rate, you have go through approved Form M.
To get Form M approval now is like a horse passing through a needle's eye.

D banks charge abnormally cos we dey ABNORMAL GOVERNMENT

Yes, that's what gtb is charging too. It's discouraging. Hopefully the government will address it soon.

Nairadays:
The banks are now permitted to source for the greenback themselves, not like before where they were offered via the DAS (Dutch Auction System) of the CBN.

When they source from the CBN, they're bound by the law to charge at that rate or slightly higher than the rate at which CBN sold it to them, but now CBN stopped the auction system partly due to the fact that our foreign reserves have been depleting since the fall in crude prices, and so therefore banks are mandated to source for it themselves. They're not bound by the CBN official rates trading anymore but blackmarket rates.

It's so painful, heard from my colleagues that one certain bank was even charging NGN398 to $1.

May God deliver us from the mercy of these banks.

Good explanation.

In other words....low crude prices= low forex reserves.