HenryDion:
Forget about dollars, banks can't be trusted generally.

That was how a client paid me via Western Union, and the same client started receiving strange calls from Nigeria.

I never exposed our transaction to a third party, but this same client started getting unsolicited phone calls from Nigerians with fake accents.

Thanks to Pay Pal!

Nawa oo...

But how can I operate a PayPal from Nigeria?

Yazmin:



Your idea has always been postulated as a way out of the FX quagmire we have had to live with in the entire life of our Nationhood.

In practice however the fact remains that either with the use of e currency (FX) or Travellers' Cheque (or a combination of both), the issuing bank would still need to settle it's forex positions with the honouring institutions (counterparty) and would need the CBN to sell it the scarce FX at a competitive rate ,due to the plethora of needs.

There is a huge and insatiable demand for FX from Nigerians and Nigeria for various reasons, the most prevalent being:

- Our status as a non capital and consumer manufacturing/producing Nation, which puts pressure on importation(and thus FX).

- Our likes for foreign products and services (against available local alternatives)

- Our over dependence on oil as a main source of FX (with dwindling fortunes of this and almost zero FDI's).

- Also, Diaspora remittances are also not adequately deployed and channeled to economic activities.

The underlying issues causing the scarcity in the first place must be addressed, then the channels for effectively making them available can be deployed.

Warm regards.

Thank you very much for this analysis and submission - nothing but the fact.

But trust Nairalanders to be looking out for posts of people who have no knowledge or solution to problems - just to say saibaba, our darling daddy etc

Back to topic - the symptoms of the ailment which is ever increasing demand - is what the BDCs were exploiting - of the root cause which you listed is nkt solved the banks DMBs will cash out as well..

But how do we solve our taste for foreign goods - how do we even begin to manufacture without stable power - how do we attract FDI with fulani herders and bandits + Islamists and other non state actors bedevilling our society

Your guess is as good as mine - we can't

But we can cut this seeming giant to size like the regions, have resource control and maybe competition to develop and also trade and commerce bw regions will Kickstart the Nigeria that we desire
.

jacoik:
this is pure and bitter truth

which pure and bitter truth?

Most 2nd and third world countries can't do without dollar as they rely heavily on imports. The dollar is unofficially the legal tender of the world hence they need it for foreign transactions

I feel this man is into bDC hence the reason he's complaining.

The dollar may be scarce and likely go up for now but when things take shape it may drop drastically.

The banks will be easier to monitor than those individual bdc operators. At least we do see bank publish how they sell out their currency In newspapers. Aside that banks that default know cbn sanction awaits them hence they will comply.

We've seen the worst of bdc operators so let's try something new. Let's see the worst of the comm banks. I have the feeling it may not be that bad.

The only fear is these bdc operators coming back to hijack the system by dominating the queue in banks all to go and start reselling the dollar .

May God save us from every form of greed in this country. Amen

It wont be easy for our politicians to loot, that's the issue

Ceenachi:
Then stop dollar being a legal tender on Nigeria soil. Naira is our own currency and that should be the currency for local transactions. When it comes to foreign transactions, there should be electronic conversion via commercial banks ( through individual account that is domiciled in a commercial banks) and this does not involve physical touch of Dollars . Our leaders know what to do but there is no political will to do it
Can you go to United States and find Naira being moved physically ? Or China ?

Ceenachi:
Then stop dollar being a legal tender on Nigeria soil. Naira is our own currency and that should be the currency for local transactions. When it comes to foreign transactions, there should be electronic conversion via commercial banks ( through individual account that is domiciled in a commercial banks) and this does not involve physical touch of Dollars . Our leaders know what to do but there is no political will to do it
Can you go to United States and find Naira being moved physically ? Or China ?

Good thinking. Nice one

owagbeba:


This is always what I have thought to be a good solution to this dollar issue.

Let the DMBs sell e-dollars for FCY remittance. and for BTA they can issue a travelers cheque or visa/master card with higher daily withdrawal limit. This way nobody needs cash dollars.

For those wanting dollar to pay school fee in Nigerian school, same e-dollar bought at counter and transferred to the schools dormicilliary account.

Why can’t we just find a simple easy way for those dollar issue. This cbn’s back and forth with BDC is just creating problems for the economy. Dollar is now 525... expect another uptick in the price of goods, and eventually price of service; meanwhile salary for the employed remains the same, creating need for the employed to find a “short-cut” means to make up for the deficiencies in their personal finance. Of course, expect more corruption! More agbero harassing truckers and commercial buses, more cases of police extortion, more bureaucracy at government office, and many more.

Correct!

Simplythebest:
Bank don't withhold dollars. Have u ever go to bank to collect western union and the told u no dollar? Or have u requested for PTA and the bank told u no dollar. I think this the best decision CBN has made so far. They can control and checkmate the bank not not those BDC

Yes, I have requested for PTA several times and they said no dollar. First bank, Gtb are the banks I made requests from. They will suggest I buy from a mallam or wait for the day they have.

wealthyhenry:
My dad is Bureau d'Change operator. His business has been affected.

he is part of the problem. BDC and banks are the same , infact BDC are worst

Is this not the same man that said he is in hiding because his life is in danger?
These guys know how to play Nigerians, because they know how emotional and sentimental Nigerians are over issues

design113:

If we can't trust the banks, who then can we bank on?

Mad pun, don't leave me.
Naija rested in peace a long time ago, yesterday keeps getting better.

This government has never done anything out of a sincere conscience.
Ulterio motives have always been their footstool.

Why is it now that election is by the corner?, why ban the BDCs when you have not made any adjustments on the banking mode, everything is geared towards making the citizens face more suffering.
Banks will begin crazy preferential tretments, wate people's time, this ban would do more harm than good.

How we are paying for wrongs we never commited, its one ill news or the other each day.

They just added more difficulty in travel preparations.

The worse part is that they know what to do, but they don't want to do it because it will affect the official crimes they commit.
They are the one's who glorify these foreign currencies, if they bring down the glory 5 notches down things will be better, but they won't nah.

God save us, if only we had an option to select where we were to be born...

Ceenachi:
Then stop dollar being a legal tender on Nigeria soil. Naira is our own currency and that should be the currency for local transactions. When it comes to foreign transactions, there should be electronic conversion via commercial banks ( through individual account that is domiciled in a commercial banks) and this does not involve physical touch of Dollars . Our leaders know what to do but there is no political will to do it
Can you go to United States and find Naira being moved physically ? Or China ?

Not a good idea. Most foreign countries still demand to sight cash PTA from inbound travellers. So how would nigerians have cash dollar if your idea is implemented?

Maybe u requested when CBN was not given bank dollars or not approving PTA. I no what am talking about cus am in the system. But trust me this is the best decision so far

danowena:

Yes, I have requested for PTA several times and they said no dollar. First bank, Gtb are the banks I made requests from. They will suggest I buy from a mallam or wait for the day they have.

Remember there was time CBN stop giving bank dollars for such things remember. But apart from that this the best decision so far cus CBN will monitor everything. I use to request for PTA to my customers in my branch and the got it same day. So i no what am saying

iswallker:


Wanted to pay school fees one yr - bank staff advised me to go buy from mallam - as theirs could take forever

Moferere:
I agreed with Mailafia.
1. Being a former CBN staff, he understands the game;
2. From personal experience, I can't trust DMBs. It will interest you to know that DMBs hoard mints and resale to their own people

From your post it is obvious you did not work with CBN...You cannot trust the bank but you can trust the BDC that has been collecting 393 and selling 500....Wedon sir

Ceenachi:
Then stop dollar being a legal tender on Nigeria soil. Naira is our own currency and that should be the currency for local transactions. When it comes to foreign transactions, there should be electronic conversion via commercial banks ( through individual account that is domiciled in a commercial banks) and this does not involve physical touch of Dollars . Our leaders know what to do but there is no political will to do it
Can you go to United States and find Naira being moved physically ? Or China ?

Of what value is your naira? Why would someone one to move naira physically? Ppl can carry other currency in US it is not a crime oga

design113:

If we can't trust the banks, who then can we bank on?

The BDC...lol. obviously he is a benefactor.
The point is a bank risk sanction unlike a useless BDC.
They are just abusing the privileges.
Nigerians Cannot support nonsense and expect a different result. The CBN Governor came out and called it what it is. GREED

Yeah banks can be bad, you forget the reason why people patronize bdc is because banks wont even sell dollar to individuals unless it is up to a certain threshold like say 10,000 dollars and above, but I think its just a human greed problem.

Simplythebest:
Bank don't withhold dollars. Have u ever go to bank to collect western union and the told u no dollar? Or have u requested for PTA and the bank told u no dollar. I think this the best decision CBN has made so far. They can control and checkmate the bank not not those BDC

They couldn't checkmate BDC is it those thieves (banks) they can checkmate? Banks that hoard common Mint notes.

Don't worry they will do that. Very easy something to do. I understand ur point Nigeria is over corrupt

Niom:


They couldn't checkmate BDC is it those thieves (banks) they can checkmate? Banks that hoard common Mint notes.

Yes

Simplythebest:
Bank don't withhold dollars. Have u ever go to bank to collect western union and the told u no dollar? Or have u requested for PTA and the bank told u no dollar. I think this the best decision CBN has made so far. They can control and checkmate the bank not not those BDC

you lot are kids, you arwe talking of $1000 and $500, try and collect $20,000 and hear waht they will say, My friend whom I warned not to do this domicle account shyte did it, he tried to withdraw £15k bank told him no forex, then said Ok give me $10k bank said no forex but they are prepared to pay him in local currency and guess at waht rate? CBN rate that nor be Winch

loswhite:
From your post it is obvious you did not work with CBN...You cannot trust the bank but you can trust the BDC that has been collecting 393 and selling 500....Wedon sir

500? U mean 525

owagbeba:


This is always what I have thought to be a good solution to this dollar issue.

Let the DMBs sell e-dollars for FCY remittance. and for BTA they can issue a travelers cheque or visa/master card with higher daily withdrawal limit. This way nobody needs cash dollars.

For those wanting dollar to pay school fee in Nigerian school, same e-dollar bought at counter and transferred to the schools dormicilliary account.

Why can’t we just find a simple easy way for those dollar issue. This cbn’s back and forth with BDC is just creating problems for the economy. Dollar is now 525... expect another uptick in the price of goods, and eventually price of service; meanwhile salary for the employed remains the same, creating need for the employed to find a “short-cut” means to make up for the deficiencies in their personal finance. Of course, expect more corruption! More agbero harassing truckers and commercial buses, more cases of police extortion, more bureaucracy at government office, and many more.

Brilliant idea, USDT can and will even solve this issue,but then again they have to revisit the crypto ban.

Yazmin:



Your idea has always been postulated as a way out of the FX quagmire we have had to live with in the entire life of our Nationhood.

In practice however the fact remains that either with the use of e currency (FX) or Travellers' Cheque (or a combination of both), the issuing bank would still need to settle it's forex positions with the honouring institutions (counterparty) and would need the CBN to sell it the scarce FX at a competitive rate ,due to the plethora of needs.

There is a huge and insatiable demand for FX from Nigerians and Nigeria for various reasons, the most prevalent being:

- Our status as a non capital and consumer manufacturing/producing Nation, which puts pressure on importation(and thus FX).

- Our likes for foreign products and services (against available local alternatives)

- Our over dependence on oil as a main source of FX (with dwindling fortunes of this and almost zero FDI's).

- Also, Diaspora remittances are also not adequately deployed and channeled to economic activities.

The underlying issues causing the scarcity in the first place must be addressed, then the channels for effectively making them available can be deployed.

Warm regards.

Bro, they really have to find a way to keep things stable... if it’s 1000 per dollar (god forbid) ... let them try to keep it within that bandwidth. This “flip flop” policy by CBN every time spooks people and business. It makes Naira very toxic.

Let me explain to you how this policy changes played out in my firm on Tuesday. We saw a report on Nairametrics about A new CBN directive to halt all dollars sales to BDC. This was late..past 4pm..the banks were closed.

On Wednesday morning, we initiated a rapid liquidation of all our Naira holdings to USD as a safe hedge at the rate of 510, Remember the last time CBN did a similar policy flip flop, Naira lost a huge value, and it has not recovered ever since.

Not that we want to hoard USD, but the Naira is so unpredictable. So many people and companies are in the same boat. The instability spooks every one. We don’t want to loose holding the Naira

If it’s 1000 per USD, let it be stable so that people and business can make projections and plans in the future.

CBN is always on about local manufacturing. Many manufacturing company here in Nigeria are part of the global supply chain. There is a component in there manufacturing process that has to be imported; even dangote imports. Nigeria Breweries still import bottles, even if the rest of the beer manufacturing are locally sourced (not sure).

Imagine an importer who Calculated his selling price at 525 Per USD today. Customers made payment to him via POS. By the time he receives this payment the next day, dollar could have risen to 530.. do you think he would want to risk using POS for his payments. He would want cash So he can quickly buy USD, and this defeats the cashless policy CBN wants.

Sometimes these changes have an indirect effect on the economy.

Well it depends on branch and the period. The branch suppose to request for dollars from there bullion and the will supply it for them. Remember then no one is monitoring then but now CBN will monitor them their will be a different. But in all u know how Nigeria is corrupt and everyone want to cash out with any opportunity. But trust me this the best decision for CBN Naria will bounce back give it a month.

erico2k2:

you lot are kids, you arwe talking of $1000 and $500, try and collect $20,000 and hear waht they will say, My friend whom I warned not to do this domicle account shyte did it, he tried to withdraw £15k bank told him no forex, then said Ok give me $10k bank said no forex but they are prepared to pay him in local currency and guess at waht rate? CBN rate that nor be Winch

Simplythebest:
Well it depends on branch and the period. The branch suppose to request for dollars from there bullion and the will supply it for them. Remember then no one is monitoring then but now CBN will monitor them their will be a different. But in all u know how Nigeria is corrupt and everyone want to cash out with any opportunity. But trust me this the best decision for CBN Naria will bounce back give it a month.

Bro that one nah ur own u talk oh, me I dey wire money directly to my bank today's rate £1=N700 pere no long thing

People are fighting banks instead of how the economy will be better. The prices of goods are mostly affected by the black market aboki rate of dollars because of their greed to sell at high price. Imagine how much CBN do sell to them , just can't believe this greed affecting the whole nation economy for all these years .