kikake:



Search, prosecute and jail people for possessing hard currencies.l?


Buhari jailed Fela Kuti for possession of hard currency.


Perhaps, Nigeria is entering the stage when people are jailed for having hard currencies.

Would Travellers be stripped searched at the airport too? Make then start to employ fine and young immigration and custom officers for the search and also allow ladies search men.
Nah to remove pant/underwear from dresscode remain

To be a big player in the forex industry you have to understand how nigeria works you have to settle the big guys in government, and for your information the only accept dollars
After that you will get your permit
#egunje the thing wey spoil lagos

This is the reason for the ban;

"An industry source alleged that the affected firms were withholding dollar inflows meant to deepen foreign currency liquidity in the country, and were paying local beneficiaries with naira instead of dollars."

The operators need to do their business with integrity and international best practices. A situation whereby they withhold the dollar supplies and pay Nigerians in local currency can no longer be accepted,” the source, who is conversant with the operation of international money transfers said.

“The operators opened local accounts where they disburse naira instead of dollar to beneficiaries. This has to stop,” the source said.

We need to do our research before criticisms. Their continued operation will not allow the flow of dollars into the system, which is what we all want.

gmaribel:


Dont be surprised when soon the highest amount in cash you will b allowed to bring in will be $500.

We are humbly awaiting this kind of draconian legislation

dayohope1:
This is the reason for the ban;

"An industry source alleged that the affected firms were withholding dollar inflows meant to deepen foreign currency liquidity in the country, and were paying local beneficiaries with naira instead of dollars."

The operators need to do their business with integrity and international best practices. A situation whereby they withhold the dollar supplies and pay Nigerians in local currency can no longer be accepted,” the source, who is conversant with the operation of international money transfers said.

“The operators opened local accounts where they disburse naira instead of dollar to beneficiaries. This has to stop,” the source said.

We need to do our research before criticisms. Their continued operation will not allow the flow of dollars into the system, which is what we all want.

Worldremit pays directly into local accounts at designated local rates and currency applicable to recipients country
At the point of transactions, you receive amount payable in local rates.
I think your inside source needs to be more familiar with the running and operations of businesses and treat them holistically and not have a blanket presumption

linearity:


How so? Do you care to explain?

These recipients do not collect dollar notes over the counter at Nigeria banks and these agencies do not courier dollars notes into Nigeria...If anything, these remittance increases the demand for the Naira note period! These agencies keeps the dollar paid by the sender, they are forced to buy or demand Naira at the other end to pay the recipient, thereby increasing the demand for Naira and those money goes into improving the Nigeria economy.

You don't understand how international money transactions function.

If for example, oil companies are paying their royalties to Nigeria, do the money the companies pay enter Nigeria in Naira?

kikake:



Look into Buhari's mind set. His parochial attitude to issues about north and south of Nigeria is capable of making Buhari order a clampdown on money transfer industry because about 95% of the monies remitted goes to the southern beneficiaries - Buhari's 5%.
It doesn't matter to somebody like Buhari that the foreign currencies end up stabilizing the Naira exchange rate against foreign currencies.
There's nothing my being paranoid, having known what Buhari can do to make his north be on the same human development pace with the south

Bro, Buhari is not as stuupid as you wish him to be.... Besides, this policy might have absolutely nothing to do with Buhari. The CBN has simply called on international money transfer operators to get registered so their activities can be regulated. This shouldnt be a big deal, financial institutions are registered and regulated all over the world..

linearity:


This is so true, anyone that still uses Western Union, WorldRemit or these other carriers to transfer money is a COMPOUND FOOL! I rarely call people fool and Yes, I have that in Caps!

Otherwise, how do one explain, leaving about N70/to the dollar on the table, each time you transfer money? Western Union charges N306/$1.00, my black market operatives does the same for N370/$1.00...if you transfer just $5k with Western Union, you just left N350,000.00 on the table, if that is not foolishness, I do not know what else is.

Though some black market operatives restrict the amount you send periodically, but there are many of them and they are very reliable. They have shops all over the US and their businesses are registered in the US and you must follow the basic rules of money transfer as established in the US, e.g income verification, IDs, etc. They are only called 'black market' because they are not recognized by the Nigeria government, despite the fact that, most of them are bankrolled by influential money bags in Nigeria who makes day to day decisions in Nigeria.

Western Union, Moneygram and worldremit have since updated their rates to even match the smaller competitive vendors. Also it appears this restriction will only affect the bigger guys like worldremit who are not officially registered in Nigeria. Smaller operators who offer the best rates dont seem to be affected by this law; those smaller guys are invisible.

I quite understand your view point. The problem here is World Remit does not bring in dollars but pays you in naira. Though, there was a time CBN mandated Moneygram and Western Union to pay people in naira. What happened was that they brought in dollars, sold them to the CBN and you get paid in naira. As regards World Remit, they pay you in naira, and kept the dollars from coming into the nigerian financial system.

You may prefer it but it destroys the macro economy.

Lexusgs430:


Worldremit pays directly into local accounts at designated local rates and currency applicable to recipients country
At the point of transactions, you receive amount payable in local rates.
I think your inside source needs to be more familiar with the running and operations of businesses and treat them holistically and not have a blanket presumption

obailala:
Western Union, Moneygram and worldremit have since updated their rates to even match the smaller competitive vendors. Also it appears this restriction will only affect the bigger guys like worldremit who are not officially registered in Nigeria. Smaller operators who offer the best rates dont seem to be affected by this law; those smaller guys are invisible.

The above quote rate of N306/$1.00 is Western Unions rate as at today, August 3, 2016; Money gram is N317/$1.00, World Remit has suspended their service to Nigeria, so one was not able to get their current rate, but it is not at par with the private operatives. You are still leaving thousands if not millions of Naira on the table by using them, especially for anyone that have a project in Nigeria.

A new phrase should be coined "As confused as CBN"

linearity:


The above quote rate of N306/$1.00 is Western Unions rate as at today, August 3, 2016; Money gram is N317/$1.00, World Remit has suspended their service to Nigeria, so one was not able to get their current rate, but it is not at par with the private operatives. You are still leaving thousands if not millions of Naira on the table by using them, especially for anyone that have a project in Nigeria.

can you recommend a reliable and reasonable rate small operative that folks in the US or UK can use?

kikake:






You don't understand how international money transactions function.

If for example, oil companies are paying their royalties to Nigeria, do the money the companies pay enter Nigeria in Naira?

You might have to do more readings, as you are comparing Apples to Oranges here....

Royalties from foreign company to Nigeria goes to the Nigeria government and it is purely received and keep as forex and increases Nigeria's foreign reserve....On the other hand, a Nigeria in diaspora sending money to his relatives in Nigeria or doing a construction project in Nigeria, that dollar sent (e.g. from the US)....that dollar must be converted to Naira for onward delivery to the recipient...there is no reserve....the local bank have to meet that increase demand for Naira, it is very simple.

Even if the local bank pays the recipient in dollar, which is unlikely, I cannot use dollar to go buy tipper of white sand from Baba Bola, he needs Naira notes, again increasing demand for Naira notes!

linearity:


How so? Do you care to explain?

These recipients do not collect dollar notes over the counter at Nigeria banks and these agencies do not courier dollars notes into Nigeria...If anything, these remittance increases the demand for the Naira note period! These agencies keeps the dollar paid by the sender, they are forced to buy or demand Naira at the other end to pay the recipient, thereby increasing the demand for Naira and those money goes into improving the Nigeria economy.

But the agencies by the naira cheaply... R u aware of this?

Tearg1:
Shouldn't the country be encouraging more forex transfers? Another deadbeat from our so called apprentices handling the economy....

These morons need to ask George Osborne for a tip on how to stabilise an economy....

If this move was so good wouldn't other countries impliment it??
This makes me believe someone somewhere is making Billions extra in their greedy pockets...

If this move backfires it can harm the economy that is already dead...

The central bank is only angry at this companies because they remit your money using black market rate ,by so doing stopping banks from stealing from Nigerians in diaspora .

Western union is also pressing this buttons because they have lost a lot of customers.

Nigeria banks are lazy, they depend on the government to generate profit at the expense of Nigerians .

danjumakolo:


But the agencies by the naira cheaply... R u aware of this?

Pls explain how they do it, am interested.

dayohope1:
I quite understand your view point. The problem here is World Remit does not bring in dollars but pays you in naira. Though, there was a time CBN mandated Moneygram and Western Union to pay people in naira. What happened was that they brought in dollars, sold them to the CBN and you get paid in naira. As regards World Remit, they pay you in naira, and kept the dollars from coming into the nigerian financial system.

You may prefer it but it destroys the macro economy.

Your explanation doesn't make sense to me..

If worldremit or other non registered players collect my pounds sterling, they still need to source naira to honour the contract to deliver naira to my recipient. This means they have to source or buy naira from somewhere. They certainly won't be buying naira from CBN at the artificially low rate as CBN will not give them market value for their Forex! They will be buying naira (in exchange for pound sterling) from secondary sources at a more realistic price.

That's why they offer better rates, western union as a registered operator is compelled to sell the Forex to CBN at CBN dictated rates that's why western union has the worse rates of transfer to Nigeria and I don't know anyone apart from the desperate, clueless or easy money people who use western union.

Why get N404 for your pound when you can get 490 elsewhere?
The Nigerians in diaspora mainly work very hard for their hard earned cash so they will naturally seek out the best value.
Moreover, CBN doesn't have the foggiest how much money comes into Nigeria via the informal network of money transfer. I suspect it's a lot more than the $20 billion quoted via the official channels as this is mostly used by multinational companies and perhaps clueless Nigerians



Another point, when oil prices were high and Nigeria was awash with petrodollars, naira was stronger and more readily available now we don't have enough Forex to go round because of our dollar and import dependent economy it is natural for naira to be weak and even get weaker.

CBN is compounding the issue by protecting our national pride instead of our economy, the naira needs to find its own level like the majority of the currencies in the world. All CBN is doing now is creating billionaires in the banking and financial sector at the expense of the rest of the country.

fyneguy:


The idea is to use the channels to stabilize forex. CBN has asked licensed transfer operators to sell the foreign currencies to BDCs, to shore up supply and consequently stabilize exchange rate.

WorldRemit may have to apply for the licence and run its operations in accordance with these policies.

At bolded is the issue here. They are supposed to be informed of any change in policy and what they need to do to adjust but they got nothing just speculations. Our government needs to learn how to carry people/businesses along. If you don't want them again tell them and you want them to go through another process let them know. That's professionalism.

danjumakolo:


But the agencies by the naira cheaply... R u aware of this?

In my previous post on this topic, that is why I indicated that, these operations are been bankrolled by highly influential people in our society, with some type of government assistance.

For one to be able to sell N370 for $1.00, it means he/she must be getting more than N370 to the dollar to make any profit. Even the Nigeria citizens on the street will not make such a deal..e.g. someone coming to you and saying, please give me e.g. N400 and I will pay you $1...and this individual turning around and selling it for N370/$1.00 for a profit of N30/$1.00.

That begs the question...where are these people getting these Naira so cheap? The Bank will not do that deal either....what about CBN or the printing press....You cannot get Naira this cheap unless the CBN and/or printing press are in cohort, and we are ruling that the option that, these people are printing fake Naira notes as you can't do that this belatedly and not be caught? In fact, this scheme makes what the Dasuki did a child's play!

I enjoy your insightful argument, matured and devoid of insult.

Simply put, they get these funds cheaply from oil companies. Secondly, they settle themselves i.e. the oils companies and these money transfer companies, through some kind of netting, similar to the clearing banks use.

They only debit/credit one another with the differences. A major damage to the economy in the long run fx wise. If you check, the kind of currency problem Nigeria has is prevalent in most oil exporting countries.

naijafresh:



Your explanation doesn't make sense to me..

If worldremit or other non registered players collect my pounds sterling, they still need to source naira to honour the contract to deliver naira to my recipient. This means they have to source or buy naira from somewhere. They certainly won't be buying naira from CBN at the artificially low rate as CBN will not give them market value for their Forex! They will be buying naira (in exchange for pound sterling) from secondary sources at a more realistic price.

That's why they offer better rates, western union as a registered operator is compelled to sell the Forex to CBN at CBN dictated rates that's why western union has the worse rates of transfer to Nigeria and I don't know anyone apart from the desperate, clueless or easy money people who use western union.

Why get N404 for your pound when you can get 490 elsewhere?
The Nigerians in diaspora mainly work very hard for their hard earned cash so they will naturally seek out the best value.
Moreover, CBN doesn't have the foggiest how much money comes into Nigeria via the informal network of money transfer. I suspect it's a lot more than the $20 billion quoted via the official channels as this is mostly used by multinational companies and perhaps clueless Nigerians



Another point, when oil prices were high and Nigeria was awash with petrodollars, naira was stronger and more readily available now we don't have enough Forex to go round because of our dollar and import dependent economy it is natural for naira to be weak and even get weaker.

CBN is compounding the issue by protecting our national pride instead of our economy, the naira needs to find its own level like the majority of the currencies in the world. All CBN is doing now is creating billionaires in the banking and financial sector at the expense of the rest of the country.

linearity:


You might have to do more readings, as you are comparing Apples to Oranges here....

Royalties from foreign company to Nigeria goes to the Nigeria government and it is purely received and keep as forex and increases Nigeria's foreign reserve....On the other hand, a Nigeria in diaspora sending money to his relatives in Nigeria or doing a construction project in Nigeria, that dollar sent (e.g. from the US)....that dollar must be converted to Naira for onward delivery to the recipient...there is no reserve....the local bank have to meet that increase demand for Naira, it is very simple.

Even if the local bank pays the recipient in dollar, which is unlikely, I cannot use dollar to go buy tipper of white sand from Baba Bola, he needs Naira notes, again increasing demand for Naira notes!

This also ensures supply of dollars is low, hiking up the exchange rate and coming round to bite you in the butt when you complain that it costs you more to import a car from America.

On the surface, this looks like a smart move from the CBN.

I believe that someone is not really happy with worldremit. The someone in quote likely banks that uses mg or Wu to make extra cash for themselves.
My last transaction with worldremit was like 9 days ago .I received inflow from them at the rate of 335 while the Wu and mg charged around 300/$. U know the funniest thing was that worldremit is nearly instant to my account (less than 7 hours)while others might take much time with stress. What really baffled me more was that I posted here how worldremit better to receive money here than Wu and mg ,it was blocked immediately by only God knows.

linearity:


The above quote rate of N306/$1.00 is Western Unions rate as at today, August 3, 2016; Money gram is N317/$1.00, World Remit has suspended their service to Nigeria, so one was not able to get their current rate, but it is not at par with the private operatives. You are still leaving thousands if not millions of Naira on the table by using them, especially for anyone that have a project in Nigeria.

dayohope1:
I quite understand your view point. The problem here is World Remit does not bring in dollars but pays you in naira. Though, there was a time CBN mandated Moneygram and Western Union to pay people in naira. What happened was that they brought in dollars, sold them to the CBN and you get paid in naira. As regards World Remit, they pay you in naira, and kept the dollars from coming into the nigerian financial system.

You may prefer it but it destroys the macro economy.

I personally think the main problem is our fascination with $.
The micro economy suits the common man better. The government should do what is right with our resources and economy, and this problem of $ romancing would be a misnomer

priceaction:
I believe that someone is not really happy with worldremit. The someone in quote likely banks that uses mg or Wu to make extra cash for themselves.
My last transaction with worldremit was like 9 days ago .I received inflow from them at the rate of 335 while the Wu and mg charged around 300/$. U know the funniest thing was that worldremit is nearly instant to my account (less than 7 hours)while others might take much time with stress. What really baffled me more was that I posted here how worldremit better to receive money here than Wu and mg ,it was blocked immediately by only God knows.

The ease of worldremit transactions, I feel some bigwigs are really losing marketshare and not happy.
Worldremit tops up mobile phones and moneytransfer with the speed of light(in comparison to WU or MG).
Abeg make government face beta issues and leave the free market.

[s][/s]

dayohope1:
This is the reason for the ban;

"An industry source alleged that the affected firms were withholding dollar inflows meant to deepen foreign currency liquidity in the country, and were paying local beneficiaries with naira instead of dollars."

The operators need to do their business with integrity and international best practices. A situation whereby they withhold the dollar supplies and pay Nigerians in local currency can no longer be accepted,” the source, who is conversant with the operation of international money transfers said.

“The operators opened local accounts where they disburse naira instead of dollar to beneficiaries. This has to stop,” the source said.

We need to do our research before criticisms. Their continued operation will not allow the flow of dollars into the system, which is what we all want.

[s][/s]

Trash

Excellent.
you have succeeded in giving us a summary solution to our problem.

Lexusgs430:


I personally think the main problem is our fascination with $.
The micro economy suits the common man better. The government should do what is right with our resources and economy, and this problem of $ romancing would be a misnomer

dayohope1:
Excellent.
you have succeeded in giving us a summary solution to our problem.

Thank you Boss.
Can I please have Kemi Adeosun's job?

First of all, they blocked outflows thru worldremit last year, it was not reported like this by the media but we know. As if that was not done, they are about to block their inflow again, which is what ,I think the government needs more. Am losing hope in this country totally. Many selfish interest and short corners to swindle us. I don't think this is fair enough. They should let the market do it's own.

Lexusgs430:


The ease of worldremit transactions, I feel some bigwigs are really losing marketshare and not happy.
Worldremit tops up mobile phones and moneytransfer with the speed of light(in comparison to WU or MG).
Abeg make government face beta issues and leave the free market.

But Western Union and Moneygram all pay in Naira too with the banks getting their own share in forex.

dayohope1:
This is the reason for the ban;

"An industry source alleged that the affected firms were withholding dollar inflows meant to deepen foreign currency liquidity in the country, and were paying local beneficiaries with naira instead of dollars."

The operators need to do their business with integrity and international best practices. A situation whereby they withhold the dollar supplies and pay Nigerians in local currency can no longer be accepted,” the source, who is conversant with the operation of international money transfers said.

“The operators opened local accounts where they disburse naira instead of dollar to beneficiaries. This has to stop,” the source said.

We need to do our research before criticisms. Their continued operation will not allow the flow of dollars into the system, which is what we all want.

priceaction:
First of all, they blocked outflows thru worldremit last year, it was not reported like this by the media but we know. As if that was not done, they are about to block their inflow again, which is what ,I think the government needs more. Am losing hope in this country totally. Many selfish interest and short corners to swindle us. I don't think this is fair enough. They should let the market do it's own.

They simple want to use military strategy to fix or force forex rates.
It takes more than military strategy. Let's start exporting to start with, block leakages and drastically reduce corruption. They would see how the available funds would play a greater role in empowering the commonman and more funds available for infrastructure projects(at least 20 hours direct power supply) Employments would be created, entrepreneurs would have a reason to think positively and we would all be smiling

I said this earlier;

dayohope1:
I quite understand your view point. The problem here is World Remit does not bring in dollars but pays you in naira. Though, there was a time CBN mandated Moneygram and Western Union to pay people in naira. What happened was that they brought in dollars, sold them to the CBN and you get paid in naira. As regards World Remit, they pay you in naira, and kept the dollars from coming into the nigerian financial system.

You may prefer it but it destroys the macro economy.

bigtt76:
But Western Union and Moneygram all pay in Naira too with the banks getting their own share in forex.

bigtt76:
But Western Union and Moneygram all pay in Naira too with the banks getting their own share in forex.

So what is good for the geese is not good for the gander?
Banks love forex, but the owner of the money hates forex?
They are the cause of their problems (banks and government).