bigtt76:
Funny thing is most banks don't do over the counter FX payouts It must be to your dom account or naira account

First bank does.. I can ascertain.

But then, why not just open a dorm account to eliminate any issues with FX?!

E go better jare.

27Pushing30:


Risk appetite. plain and simple.

BUT per the bolded "Some branches of the same bank will accept cash deposit for FCY transfer to oversea banks" - in my Bank like most banks branches are merely collection centers (for FCY transfer) the main transfer is done at a specialized unit and they usually check the source of the deposit before effecting transfer. ours is a limit of $10,000 per day (if it's a cash deposit).

"Some banks have completely closed FCY transfers" - On online banking channels ... maybe but physical in branch transfers i seriously doubt that

You mean your bank accepts cash deposit for FCY Transfers ?
Is your bank in Nigeria?

I have been suffering with UBA for months now. They have refused to process FCY remittance for a month now. Access helped me last month, though I had to present invoice from oversea company. Access brand at LASU refused to help saying they don't do FCY remittance on deposited cash. It was another branch that told me to process it online.

There isn't any coherent policy on this. It's different from branch to branch.

I wonder if GTB is any good?

it is 470 now on AbokiFX

fid3fid:


You mean your bank accepts cash deposit for FCY Transfers ?
Is your bank in Nigeria?

I have been suffering with UBA for months now. They have refused to process FCY remittance for a month now. Access helped me last month, though I had to present invoice from oversea company. Access brand at LASU refused to help saying they don't do FCY remittance on deposited cash. It was another branch that told me to process it online.

There isn't any coherent policy on this. It's different from branch to branch.

I wonder if GTB is any good?

Actually seems like what you’re referencing is not about the cash deposit source of inflow BUT the documentary requirements .

Invisible payments require invoices and in some cases NOTAP or other regulatory body approvals . Some require service contracts etc

Payments for tangible goods on the other hand just require you state form M

Separate for machinery though

Drop your email lemme send you the CBN guide book my trade unit follows

fid3fid:


You mean your bank accepts cash deposit for FCY Transfers ?
Is your bank in Nigeria?

I have been suffering with UBA for months now. They have refused to process FCY remittance for a month now. Access helped me last month, though I had to present invoice from oversea company. Access brand at LASU refused to help saying they don't do FCY remittance on deposited cash. It was another branch that told me to process it online.

There isn't any coherent policy on this. It's different from branch to branch.

I wonder if GTB is any good?

You're right regulations have made it difficult to transfer fx without documentation and even when you present invoice, they will tell you they still need to get approval from CBN & other regulatory bodies. However different banks deal with this issue differently and it's also a function of your business relationship and understanding the regulations.

An easier way is with the proceeds from invoice discounting, they make transfers.

Rates going back up
Wetin dey worry CBN sef?

bigtt76:
Yes I get you but the IMTOs don't fly in the dollars or pounds to be credited into the beneficiary's account? The IMTOs will not do the cash out from your ba k accounts - the banks handles that.

How the banks are able to manage this depends on how much forex they can get from the CBN locally to knead off what they're able to transfer into the CBN's position from what they got from the IMTOs.

BTW the IMTOs currently sell their dollars to the banks and not the CBN

I don't know who the IMTOs sell their FX to but you seem to answer the question yourself. If they sell to the banks how do they get it into the country to sell to the banks?

The banks don't use the forex by CBN for such settlements, there are reserves the IMTOs are supposed to have and it's simply a matter of outflow and inflow.

The truth is a different unit of the bank handles this and it's different from the regular banking unit that one can source for Fx.
The CBN over the years have not helped matters with different conflicting policies and getting everyone confused.

Even with the present difficulty, I'm was still have access to Fx from the bank even without USD in my account.

They deposit to the banks' foreign position (eg US bank the Nigeria banks corresponds with) and the banks in turn sell to CBN by depositing it with CBN's foreign account. So unless CBN sells its available stock to the bank for Naira value, the banks don't get much to play around with ...I might be wrong but its also expensive for the banks to bring in the physical dollar cash into the country for example.

Studymore123:


I don't know who the IMTOs sell their FX to but you seem to answer the question yourself. If they sell to the banks how do they get it into the country to sell to the banks?

The banks don't use the forex by CBN for such settlements, there are reserves the IMTOs are supposed to have and it's simply a matter of outflow and inflow.

The truth is a different unit of the bank handles this and it's different from the regular banking unit that one can source for Fx.
The CBN over the years have not helped matters with different conflicting policies and getting everyone confused.

Even with the present difficulty, I'm was still have access to Fx from the bank even without USD in my account.

Inception:
it is 470 now on AbokiFX

It will still go back to 500 before 2 weeks

CBN cannot sustain the strengthening of the naira

This their new technique is only a temporary thing

Dollar is a strong currency and will still overtake

Already back to 485

Systrom:
It will still go back to 500 before 2 weeks

CBN cannot sustain the strengthening of the naira

This their new technique is only a temporary thing

Dollar is a strong currency and will still overtake

Penboy:


First bank does.. I can ascertain.

But then, why not just open a dorm account to eliminate any issues with FX?!

E go better jare.

My own problem of opening Dorm account is the 2 references they want me to provide. I'm not able to get them.

Excellent7:
This policy should have been in place long before now!

The dollars will eventually end up in the parallel market thus improving the supply. I think it came quite late to be very effective in an easily visible manner. If not for Coronavirus travel restrictions on travel into Nigeria, it could have been more effective.

However, I foresee some reduction in the rate of Naira fall against the dollar at least in the next 8-12 weeks. My prediction for USD: NGN is 500 plus or minus 50 NGN to USD. I am of the opinion that it could have surpassed 600 NGN per USD in this timeframe without this policy.

Sometimes I wonder how our policy makers come to the decisions they announce. It seems to me that these guys are either ignorant or know the right thing to do but do not due to pecuniary or conflicting interests.
Having said this, I will try to briefly highlight in a simple way the sources and evolution of this FOREX wahala specifically in the very recent past.

The Naira is and will continue to be under pressure as long as we continue to import much more goods and services than we export. However, this can be mitigated in the short term by policies that encourage citizens and corporates to lodge and/or invest foreign currencies in the country (non-oil-based FOREX inflows). A long-term strategy would be to increase local production of goods and services and aggressive export drive. Imagine the FOREX savings that will accrue if every litre of fuel consumed locally is produced locally!
In spite of these fundamental problems, ill-thought policies and policy summersaults have continually exacerbated the situation.

Firstly, around 2015 (I stand to be corrected), under the guise of fighting corruption the government started making issues about foreign currencies in domiciliary accounts. The impression was that government might move to confiscate foreign currencies in these accounts and/or force them to be converted to Naira at fiat rates. At a point the banks even stopped receiving foreign currency deposits! Fortunately, the “madness” did not materialize but a lot of people had become cautious. Consequently, many Nigerians in Diaspora who often keep part of their income in the country as FOREX in domiciliary accounts became wary and so did other players.

Secondly, the ban on beneficiaries of FOREX transfers receiving their payments in foreign currency but only in Naira together with the wide disparity in the exchange rates used by the banks in paying beneficiaries and parallel market rates (often in the range of 20-25% difference) ensured that in real terms the sender loses value (in the range of 20-25%) by making a transfer home as opposed to exchanging the funds at the parallel market. This and the continuous slide in Naira ensured that mostly “hot money” came from diaspora. By “hot money” I mean money for immediate and dire needs for family and dependents at home.

The government is already banking on increased remittances from the diaspora during the festive period to help with the recession but I have had my doubts. The significant difference in rates is a dis-incentive. In my opinion the difference if any, between the bank rates and parallel market rates should not be more than 5%.

So how are the banks getting the dollars vos frm what I can understand its people abroad they are asking this off cos we are the one remitting money via 3rd party companies to Nigeria. I will never ask to collect cash in dollars in Nigeria then go to aboki to change it why?

bigtt76:
They deposit to the banks' foreign position (eg US bank the Nigeria banks corresponds with) and the banks in turn sell to CBN by depositing it with CBN's foreign account. So unless CBN sells its available stock to the bank for Naira value, the banks don't get much to play around with ...I might be wrong but its also expensive for the banks to bring in the physical dollar cash into the country for example.

you are very right, some people seem to think the cash would be flown to Nigeria which is more expenssive

With that been said, abeg i need small USD in my dollar account. Who can help?

27Pushing30:


Actually seems like what you’re referencing is not about the cash deposit source of inflow BUT the documentary requirements .

Invisible payments require invoices and in some cases NOTAP or other regulatory body approvals . Some require service contracts etc

Payments for tangible goods on the other hand just require you state form M

Separate for machinery though

Drop your email lemme send you the CBN guide book my trade unit follows

Hello,

It is cash dollar deposit I mean.

Documentation is not the issue. The FCY transfer pending at UBA has a valid Form M attached to the transfer request. The only reply I get from UBA is that they do this transfer "in tranches", and that it will take awhile. It's over a month now.

It's quite difficult going around banks and their branches around my area asking them if they do FCY transfers. Access bank around my area said they don't do FCY transfers.

Someone told me I can fund the dorm account at GTB and make the transfer online. Not sure of this.

Studymore123:


You're right regulations have made it difficult to transfer fx without documentation and even when you present invoice, they will tell you they still need to get approval from CBN & other regulatory bodies. However different banks deal with this issue differently and it's also a function of your business relationship and understanding the regulations.

An easier way is with the proceeds from invoice discounting, they make transfers.

Hi. Thanks for your reply.

Do you know of any bank that would do invoice discounting?

How would you advise a leaner like me to overcome the challenges I am getting from these banks? Especially when it comes to settling oversea debt

bigtt76:
They deposit to the banks' foreign position (eg US bank the Nigeria banks corresponds with) and the banks in turn sell to CBN by depositing it with CBN's foreign account. So unless CBN sells its available stock to the bank for Naira value, the banks don't get much to play around with ...I might be wrong but its also expensive for the banks to bring in the physical dollar cash into the country for example.

What you described is correspondent banking and deferred net settlement systems with slight variations. That's how modern banking works, it simply shows that neither the CBN/Banks are using their funds but the remittances received and the cycle moves on.

Many of the IMTO's are not Nigeria companies and have the liquidity.

Like I asked earlier when will the IMTOs start?

fid3fid:


Hi. Thanks for your reply.

Do you know of any bank that would do invoice discounting?

How would you advise a leaner like me to overcome the challenges I am getting from these banks? Especially when it comes to settling oversea debt

All banks do invoice discounting. You have to meet the requirements. Go to your client's bank(s) and have a discussion with them.

In business you will need to form partnerships/relationships. Some in diaspora have been assisting in this regard.

Someone paid an equivalent of 20k USD in naira for a transaction in US. He was been delayed by the bank and had to move on

Some businesses accepts payment processors and/or virtual currency. You need to explore all available options and protect your business sir.

Seen this?

1. https://www.cbn.gov.ng/Out/2020/TED/Diaspora%20Remittances%20Amendment.pdf
2. https://www.cbn.gov.ng/Out/2020/CCD/Governor's%20Remarks%20Diaspora%20Remittances.pdf

Kick off date is immediate!

The foreign IMTOs having the liquidity does not mean they can afford to tie down their funds in a country they're not sure of cashing out. Most work with the banks on credit basis and settle after an agreed cycle.

Studymore123:


What you described is correspondent banking and deferred net settlement systems with slight variations. That's how modern banking works, it simply shows that neither the CBN/Banks are using their funds but the remittances received and the cycle moves on.

Many of the IMTO's are not Nigeria companies and have the liquidity.

Like I asked earlier when will the IMTOs start?

bigtt76:
Seen this?

1. https://www.cbn.gov.ng/Out/2020/TED/Diaspora%20Remittances%20Amendment.pdf
2. https://www.cbn.gov.ng/Out/2020/CCD/Governor's%20Remarks%20Diaspora%20Remittances.pdf

Kick off date is immediate!

The foreign IMTOs having the liquidity does not mean they can afford to tie down their funds in a country they're not sure of cashing out. Most work with the banks on credit basis and settle after an agreed cycle.

Billions of USD come in from diaspora and you are talking of "tie down their funds", you should be talking about them pumping in more money.
They don't need to "cash out" they have been paid oversees and it's me and you that need to cash out.
Yes, I know CBN said it's immediate, but none is yet to start as of yesterday, I made calls to 3 IMTOs. Today I got info that one have started which I will try on Monday.

We watch and see the impact

Studymore123:


Billions of USD come in from diaspora and you are talking of "tie down their funds", you should be talking about them pumping in more money.
They don't need to "cash out" they have been paid oversees and it's me and you that need to cash out.
Yes, I know CBN said it's immediate, but none is yet to start as of yesterday, I made calls to 3 IMTOs. Today I got info that one have started which I will try on Monday.

I received an email about suspension of transfer into Nigeria from only one company.
All the online vendors used by people abroad are still operating, business as usual. Immediate naira in ones account.

We'll see what this new week will bring.

Studymore123:


Billions of USD come in from diaspora and you are talking of "tie down their funds", you should be talking about them pumping in more money.
They don't need to "cash out" they have been paid oversees and it's me and you that need to cash out.
Yes, I know CBN said it's immediate, but none is yet to start as of yesterday, I made calls to 3 IMTOs. Today I got info that one have started which I will try on Monday.

These people are clowns. Only a Diasporian that is sick in the head will remit his dollars to Dorm account in Nigeria. So tomorrow CBN will wake up and say you can only collect it has Naira abi. Like what happened in Venezuela. The only way I'd ever consider it is if 1) The bank makes a written statement to me that I can get my money in dollars whenever I want or 2) Or That they will give me my money back at the street rate. Now they are looking for our dollars abi. After all the restrictions this pass couple of years. You can do this, you can't do that. They should go and collect their dollars from dangote. Afterall he gets it at 335 naira to 1 dollar.

CBN think say we mumu? CBN that don't have consistent policy. Everything is just wuru wuru. My dollars stays in Wells Fargo

In the past, the difference between bank rate ( or CBN rate ) and Aboki wasn't more than 5 naira.

I got dollars transferred friday from abroad. Went to ACCESS BANK to withdraw cash...it was given to me.. i went straight to aboki at Eke Awka