CBN Forex Reforms Cripple BDC Operations - Business (2)

CBN Forex Reforms Cripple BDC Operations - Business (2) - Nairaland

Nairaland Forum › Nairaland General › Business › CBN Forex Reforms Cripple BDC Operations (12934 Views)

Re: CBN Forex Reforms Cripple BDC Operations by Paperwhite(m): 7:52am On Oct 17, 2017

The hunter have become the hunted.

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Re: CBN Forex Reforms Cripple BDC Operations by psalmson001: 7:57am On Oct 17, 2017

dre11:
“CBN should reduce the official rate it sells dollars to BDCs. The bank sells dollars to commercial banks at N305 to a dollar and sells N360 to BDCs, it doesn’t augur well for our business,” said Abdullahi.

"Gwadabe explained that BDCs buy dollars from the CBN at N360/$1 and sell to end users at N362/$1 while the regulator sells to commercial banks at N358/$1 and the banks sell to end users at N360/$1."

So who is saying the truth now?

Re: CBN Forex Reforms Cripple BDC Operations by Wiseoldman: 8:05am On Oct 17, 2017

Dollar is about to fall even more relative to the Naira....the December windfall is coming in.

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Re: CBN Forex Reforms Cripple BDC Operations by psalmson001: 8:08am On Oct 17, 2017

timilehing:
Why do we need BDC when we have banks?

Have u forgotten what happened last year when cbn stopped selling to BDCs for almost 9 months?

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Re: CBN Forex Reforms Cripple BDC Operations by 2n2k(m): 8:45am On Oct 17, 2017

OboOlora:
Incoherent article! One paragraph says the CBN sells to commercial banks at $1=305, another says $1=358. Which do we believe?
Well, it doesn't change the fact that Emirs get $ at 199.50 and islamic pilgrimages get theirs at 238naira.

psalmson001:
So who is saying the truth now?

When the CBN first started its intervention, it was selling to banks at N305 (which is the official exchange rate till today) and to BDC at N380 with the hope of crowding out the bdc and that the exchange rate will converge not too far from its selling rates to banks.

As a result of restructuring of foreign exchange management in February this year which allows direct forex access for PTA/BTA, medical and tuition fees, it adjusted the rate to N358 for banks and reduced that of bdc to N360 for such transactions. Also SMEs can access forex for importation at N359/360 while still retaining the official exchange rate at N305.

The first interviewee quoted the old figures, may be because he has been out of business since the restructuring.

Re: CBN Forex Reforms Cripple BDC Operations by OboOlora(f): 8:48am On Oct 17, 2017

2n2k:
When the CBN first started its intervention, it was selling to banks at N305 (which is the official exchange rate till today) and to BDC at N380 with the hope of crowding out the bdc and that the exchange rate will converge not too far from its selling rates to banks.

As a result of restructuring of foreign exchange management in February this year which allows direct forex access for PTA/BTA, medical and tuition fees, it adjusted the rate to N358 for banks and reduced that of bdc to N360 for such transactions. Also SMEs can access forex for importation at N359/360 while still retaining the official exchange rate at N305.

The first interviewee quoted the old figures, may be because he has been out of business since the restructuring.

Ok thanks

Re: CBN Forex Reforms Cripple BDC Operations by grandstar(m): 9:04am On Oct 17, 2017

It seems the forex market has been liberalised to a far extent.

Wwhen is the CBN

Re: CBN Forex Reforms Cripple BDC Operations by grandstar(m): 9:06am On Oct 17, 2017

It seems the forex market has been liberalised to a far extent.

When is the CBN putting an end to the ridiculous 305 official rate. If that rate is fully liberalised, it will go a long way in restoring confidence in the market.

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Re: CBN Forex Reforms Cripple BDC Operations by onatisi(m): 10:23am On Oct 17, 2017

“The reason is not just that the CBN is flooding the market with dollars, but it has to do with the fact that it (CBN) is selling dollars at a discount to the banks, thereby making it possible for the banks to sell at the N360/$1 rate that the BDCs buy from the CBN.

no wonder all of a sudden now , ppl have millions of dollars in the dorm accounts to sell .
nigerians will understand better when the hunger strikes

Re: CBN Forex Reforms Cripple BDC Operations by timilehing(m): 10:36am On Oct 17, 2017

psalmson001:
Have u forgotten what happened last year when cbn stopped selling to BDCs for almost 9 months?

We know the drill na

Re: CBN Forex Reforms Cripple BDC Operations by bigtt76(f): 11:10am On Oct 17, 2017

Thats CBN's tactics to disable the BDCs ...the BDCs were our problem. They feed the parallel markets with their supplies until this was nipped in the bud grin

Re: CBN Forex Reforms Cripple BDC Operations by redsun(m): 11:37am On Oct 17, 2017

Distorted economic policies. It is like robbing Peter to pay Paul. They want to regulate naira when it is obvious that all they do to boost the economy is loot the coffers and stack them away in foreign land where the loots are used to boost the host countries economy .

Re: CBN Forex Reforms Cripple BDC Operations by yinka2011: 1:11pm On Oct 17, 2017

EvilMetahuman:
Stupid cbn sells at 305 to banks and banks sell at 370 to 400 to customers. Isn't that corruption?

Why is no one talking about this?

GBAM.

IT IS DAYLIGHT ROBBERY.

IN A SANE WORLD THESE BANK CEO SHOULD BE ARRESTED AND PROSECUTED.

Re: CBN Forex Reforms Cripple BDC Operations by DozieInc(m): 12:07am On Oct 18, 2017

the rate banks sell to individuals is high.

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