Stalwert:


So they should use the black market rate? Many bear parlor analysts in nairaland

Its beer parlour sire...

If they can supply dollar like in sa, kenya, tanzania and morocco, then it will work. In these mentioned countries, you just go to shops and get your dollar with shop owners begging usef. We can do it in this country but people like magu and babachir wont let it happen

Freedom2016:
This will be the best thing that will happen to Nigeria. Before you embark on this, make sure there is dollar supply to banks to sell to public at 305....CBN must monitor them closely because the banks are also corrupt. They can also ration it, lets say $10,000 a week at 305 for private individuals. If you choose to buy more than $10,000 a week, its your responsibility to source it outside the bank.

ThinkSmarter:
This will be a good measure 2wards curbing this ugly trend of exorbitant exchange rates for the Dollar, Euro and Pounds Sterling in the black mkt.
After all most Towns and cities in Nigeria hv designated banks where one can easily go to make transactions being it money gram, WU, FX.
this will be a Good job if CBN will get it enforced.

All these exorbitant rate is as result of greed... it will be a good measure if this happen

onatisi:

It seems you don't understand what is happening in Nigeria.
The problem.is that even thenbanks don't have dollars to sell,there is shortage of dollar supply ,these abokis have been able to source it somehow,the only way to curb the black market is for the government to pump in about 30billion dollars into the banks ,but Nigeria foreign reserve is even less than that if I am not mistaken.

Agree with you though I don't what is the basis for the $30 billion figure ,why not 50 or 300 . I think you just plucked that figure out of the air.
We should allow the forces of demand and supply to determine the dollar prices

ThinkSmarter:
Seriously, dunno b4

This is a big and serious problem. And I must say that the cbn has done its best.but without a concrete economics policy or blue print all their effort will be thwarted. Banks don't have dollars, even airlines operating in Nigeria have scaled down their operations because they cant get fx to buy,they have over 5billion naira in the naija economy that they cant remit back.companies need fx to get important raw materials,they too cant get any dollars to buy. Now everybody rushes to the black market for dollars .

omonnakoda:
Agree with you though I don't what is the basis for the $30 billion figure ,why not 50 or 300 . I think you just plucked that figure out of the air.
We should allow the forces of demand and supply to determine the dollar prices

Plucked figure out of the air
Ok I have heard u.

IT IS NOT PARALLEL BUT AN ADJACENT MARKET

Stalwert:


So they should use the black market rate? Many bear parlor analysts in nairaland

There is nothing black about the parallel market .It is open , transparent and realistic. For most of the the last 16 years the difference between the government rate and the parallel rate has been minimal because government interference was minimal. The reason for the crisis is the government intervention to create artificial prices.
The foreign exchange market is widely recognized by economists as coming closest to "perfect" in terms of the forces of demand and supply playing the greatest role in price discovery.

Government should sell government dollars at the highest price that people are prepared to pay. #305 is a joke and only creates room for arbitrage and corruption.

The most painful bit is that government is shortchanging the other tiers of government when distributing oil revenue dollars at the rate of 305.

Freedom2016:
This will be the best thing that will happen to Nigeria. Before you embark on this, make sure there is dollar supply to banks to sell to public at 305....CBN must monitor them closely because the banks are also corrupt. They can also ration it, lets say $10,000 a week at 305 for private individuals. If you choose to buy more than $10,000 a week, its your responsibility to source it outside the bank.

And seriously, these gonna be a big freedom to us. This is just a simple and straight analysis.

onatisi:

Plucked figure out of the air
Ok I have heard u.

Is there a basis for that specific figure? Where does it come from? Why $30 billion why not 21 or 44.I am keen to learn how you came about $30 billion.

Did we arrive in this position because of the sudden disappearance of $30 billion

sarrki:



That Name IB is for sir Jonathan

you will agree with me that names are shared by millions of people, you'll also agree with me that the term "ineffectual buffoon" aptly fits Nigeria's current president

APCmyheart:



I swear i think that is exactly what should have been done a very long time ago, I talk about this same thing with a friend few months ago and i think it's best option..

No black market anymore, CBN should have their agents in different banks in some location where they will sell dollars to private individuals and make sure it's a fix amount weekly and purpose of the money should be known..

The buyer most provide his/her international passport before buying, Only international should be made the only means of ID..

Why only international? What's wrong with the national identity card?

Lets hope it works. But then, they should understand that the CBN right now lacks the capacity to meet our dollar needs.
The dollar demand is high so this in my opinion is an attempt to climb Everest.

More controls that will only worsen the supply side without reducing the demand side leading to further crash of the exchange rate.
The dullard is truly in charge.

omonnakoda:
There is nothing black about the parallel market .It is open , transparent and realistic. For most of the the last 16 years the difference between the government rate and the parallel rate has been minimal because government interference was minimal. The reason for the crisis is the government intervention to create artificial prices.
The foreign exchange market is widely recognized by economists as coming closest to "perfect" in terms of the forces of demand and supply playing the greatest role in price discovery.

Government should sell government dollars at the highest price that people are prepared to pay. #305 is a joke and only creates room for arbitrage and corruption.

The most painful bit is that government is shortchanging the other tiers of government when distributing oil revenue dollars at the rate of 305.

The only sensible comment on this thread so far. There is actually nothing black about the market. It is the real market. Government is in self-delusion.

Very stupid government.

How can they eliminate parallel market? Did they establish it?

If they sell dollar to me @305, Do they have a means of stopping me from selling it to my neigbour who wants it badly and willing to pay 490 for it?

It is market forces, it is dumb thinking you can control it that way. The more restrictions you place on it, the higher the price will go.

aaronson:
Funny! How is BDC banned when it's the true determinant of the naira's rise/fall? CBN can make me laugh.

If CBN keeps using the interbank rates and giving Nigerians false hope, that is what I call DENIAL. Let the black market thrive, CBN's Job is to educate other ministries to rake in the money, stabilize the bank to ensure viable economy and so long as Dollar is the official world currency it won't and can never be manipulated out of the Nigerian financial system.

No, Not even possible with the emergence of Bitcoin and TBC.

Just remember, TBC is a scam. BTC is a real deal. Use nairafinex.com if you have your Naira

#000000

omonnakoda:
Is there a basis for that specific figure? Where does it come from? Why $30 billion why not 21 or 44.I am keen to learn how you came about $30 billion.

Did we arrive in this position because of the sudden disappearance of $30 billion

The Nigeria economy needs an average of 2billion dolllars every day to cater to it fx deals, for you to make sure that the money makes enough impact u will need to to sustain it for 2,to 4 weeks . And I know that many bankers will fault my estimations of 2billion dollars daily as grossly under estimated because even fuel importers alone can take half of this ,multiply 2billion dollars daily by 15,days . Then you willl see how I arrive at 30 billion

mployer:
Very stupid government.

How can they eliminate parallel market? Did they establish it?

If the sell dollar to me @305, Do they have a means of stopping me from selling it to my neigbour who wants it badly and willing to pay 490 for it?

It is market forces, it is dumb thinking you can control it that way. The more restrictions you place on it, the higher the price will go.

It is not cbn but the government that has decided to turn a blind eye to the problem. They even based their budget on 305 or 320, this is a nation that is operating on 5 different fx rates. It is simply madness

sarrki:
Op what should I say ?

It's very easy to eliminate but seems impossible at the moment
To eliminate it,CBN have to meet Nigerias dollar demand 100%
These people are just stupid and arrogant

the government is not telling the truth. the black market rate is the reality on ground. the fixed rate at CBN is politicizing. so unfortunately you cannot politicized the economy or forex in hope to stabilize it to your favor just as simple as that. the market force will always suppressed everything.

the aboki is not just selling at 490, they also buys the currency in close range.

as of today.

USD
BUY / SELL
484 / 490

that's it. they don't buy at 305.

the FG and banks also cheat the public for foreign remittance who the bank pays 305 to a dollar. any money legally sent to Nigeria is automatically converted to naira in 305 rates.

Clueless!

What is parallel market? It exists anywhere you have shortages in the official market.

Now you want to switch operators. How would you monitor banks? Are they not more corrupt?

Shows you they have run out of ideas.

Freedom2016:
This will be the best thing that will happen to Nigeria. Before you embark on this, make sure there is dollar supply to banks to sell to public at 305....CBN must monitor them closely because the banks are also corrupt. They can also ration it, lets say $10,000 a week at 305 for private individuals. If you choose to buy more than $10,000 a week, its your responsibility to source it outside the bank.

Exactly. This is what they should do. Sell dollars to individuals at the rate of 305naira to a dollar. Can they do that ? They can't .

Freedom2016:
This will be the best thing that will happen to Nigeria. Before you embark on this, make sure there is dollar supply to banks to sell to public at 305....CBN must monitor them closely because the banks are also corrupt. They can also ration it, lets say $10,000 a week at 305 for private individuals. If you choose to buy more than $10,000 a week, its your responsibility to source it outside the bank.

And where will they source the forex from? The White Market??

onatisi:
which yeye policy are u talking about? You are talking about Ghana ,the difference between the black market rate in Ghana and their bank rate is just about 30peswa. So nobody even bother going to banks for dollars. The question u should be asking is how will the cbn fund naika fx demand which is rumored to be about 2billion dollars daily? Does cbn have that capacity?

bank rate is 305 in Nigeria so why the BDC is exchange at a different of 185 please is that also teh fault of the Govt? BDC's in Nigeria are greedy and corrupt body..

$2billion daily abeg for what?

grandstar:


And where will they source the forex from? The White Market??

Honestly ,bro.
ppl still don't know the kind of mess buhari and his team have put Nigerians into. If they know maybe they would have started rioting by now. Next year will be tougher than this most especially if buhari still goes ahead to borrow more money.

AdeniyiA:
Are they not the ones operating the black market for their own gain?.
And if they could stop it what have they been looking at or doing since? Irresponsible governments everywhere

Yes,but now saying they should stop it

APCmyheart:




bank rate is 305 in Nigeria so why the BDC is exchange at a different of 185 please is that also teh fault of the Govt? BDC's in Nigeria are greedy and corrupt body..

$2billion daily abeg for what?

Ok I have heard u

Freedom2016:
This will be the best thing that will happen to Nigeria. Before you embark on this, make sure there is dollar supply to banks to sell to public at 305....CBN must monitor them closely because the banks are also corrupt. They can also ration it, lets say $10,000 a week at 305 for private individuals. If you choose to buy more than $10,000 a week, its your responsibility to source it outside the bank.

When you say source it outside the bank.. What do you mean?

onatisi:

Honestly ,bro.
ppl still don't know the kind of mess buhari and his team have put Nigerians into. If they know maybe they would have started rioting by now. Next year will be tougher than this most especially if buhari still goes ahead to borrow more money.

We don't hope for that bross