Commercial banks to trade FOREX freely, is this a good sign for crypto trading?

Asiska02

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Quote from: Mate2237 on June 14, 2023, 10:49:25 AM

But I still believe that there is elements of truth from the news. And let us wait and hear from other sources because if really forex has been approved then there is probability of approving crypto.

The government might approve the use of cryptocurrency soon too but that’ll not depend on how they treat forex trading in the banks or dependent on its acceptance before bitcoin can be accepted. The new government might have interest in bitcoin but it is very certain that if the acceptance will come it’ll definitely come with regulations. I hope when the time comes for we all to be able to trade bitcoin freely in the country, the regulations won’t affect our dominance in crypto already.

CryptoHeadlineNews

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Quote from: Adams0001 on June 14, 2023, 09:27:27 AM

Today, the central bank of Nigeria has allowed the trading of FOREX to all commercial banks freely. This was in tandem with the new administration motive to operate an unified exchange rate. Before this approval by the CBN, banks were not allowed to trade FOREX freely.

Could this also be a good and positive sign that the Nigerian government will soon allow the trading of Cryptocurrency by banks in the soonest??

Those are two different things entirely because while forex was once allowed by the central bank to be traded, which was a major alternative source of revenue to these banks, as they trade with people's money deposited in fixed account, use it to pay interest, staff payment & e.t.c. While Crypto on the other hand was just a new innovation which the government feared simply because they had no control over it and as such thought allowing it's citizens to use was a risk, But however, if eventually CBN now tell banks to start executing Bitcoin transactions, then such will be a welcome development to us all here on this forum and the entire Nigerian crypto community at large. Which is what we hope for very soon.

Kelward

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Quote from: Charles-Tim on June 14, 2023, 10:57:26 AM

Quote from: Adams0001 on June 14, 2023, 09:27:27 AM

Could this also be a good and positive sign that the Nigerian government will soon allow the trading of Cryptocurrency by banks in the soonest??

I forgot to reply to this. Know that forex is entirely different from crypto. Commercial banks were even allowed to trade forex before until CBN decided not to supply commerical banks with foreign currencies again in 2021 or so (I have forgotten the year, you can correct me if wrong). Even if bank later accept crypto, not because of this.

Na true say forex and crypto no be di same tin, but as dem two na medium of exchanges, one na for fiat currencies and di other na for cryptocurrency, I de hope say if na true say CBN allow banks to de trade forex, hopefully dem go find good reason to comot di ban on cryptocurrency. Me I like to get plenty options wey I fit to choose from to do exchange for bitcoin matter.

Wiwo

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Quote from: Adams0001 on June 14, 2023, 09:27:27 AM

Today, the central bank of Nigeria has allowed the trading of FOREX to all commercial banks freely. This was in tandem with the new administration motive to operate a unified exchange rate. Before this approval by the CBN, banks were not allowed to trade FOREX freely.

Could this also be a good and positive sign that the Nigerian government will soon allow the trading of Cryptocurrency by banks in the soonest??

Source: https://sunnewsonline.com/cbn-allows-banks-to-trade-freely-at-any-rate/

Forex trading is different from cryptocurrency vs bank trading in the Nigeris context and in that light the CBN may still maintain restrictions on bank crypto trading even for a long time unless the present acting governor of the CBN is confirmed Governor of the CBN will have a review of the policy that restrict banks from direct crypto transaction and apply some form of regulations if he has the mechanism to tax the trades.

A unified exchange market means that the dollar which is the major currency for exchange will have it pegged to the Naira in a free market and the government will no longer fix the naira vs dollars exchange rate the market forces will determine how much the exchange rate will be.

Doan9269

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There should be more to expectations this new presidential era, this development in particular could actually help get a unanimous rate for the exchange rate of USD and also allows the commercial banks make these same exchange on a flat rate than having independent buying price from external sources, but i believe the government also will gave it own take home benefit from this because there will be many opportunities than reopened than before.

Cryptomultiplier

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We all can't say for sure what the outcome of free trading forex by these banks would turn out to be, because, the prices would be different and this could present crypto traders and investors with opportunities to diversify gains and be fluid with their funds.
The only thing we are looking out for is the taxation on cryptocurrency that is an initiative I read about some time ago.
All these signings by the president should not choke us o, because it looks like we would soon have an economic progression with huge funds passing under our very nose

lagosnoir

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One of the last things the last administration did was to make gains from crypto subject to capital gains tax.

https://cointelegraph.com/news/nigeria-to-tax-crypto-digital-assets-10-on-capital-gains-experts-react

https://punchng.com/fg-to-tax-cryptocurrencies-in-finance-bill-2022/

So, yes , I think government is already seeing crypto as a legit commodity. But we still need a new CBN governor that will allow banks to openly process crypto transactions .

Davidvictorson

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Quote from: Adams0001 on June 14, 2023, 09:27:27 AM

Today, the central bank of Nigeria has allowed the trading of FOREX to all commercial banks freely. This was in tandem with the new administration motive to operate an unified exchange rate. Before this approval by the CBN, banks were not allowed to trade FOREX freely.

Could this also be a good and positive sign that the Nigerian government will soon allow the trading of Cryptocurrency by banks in the soonest??

Source: https://sunnewsonline.com/cbn-allows-banks-to-trade-freely-at-any-rate/

Nor be to just dey sign bills into law. Him dey try wan impress us say him wan do something. Well the only time we go know whether this billis go save the economy na in 6 months

Dr.Bitcoin_Strange

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Well, I can't really say for sure that there was any valid reason for the CBN to ban crypto in Nigeria, but since they say it was being used to commit fraud, I don't think they will unban it unless they feel they have a better way to regulate it and reduce the possibility of it not being used illegally, which is very impossible. In my opinion, I think they allow the trading of FOREX in commercial banks because it is not the same thing as cryptocurrency. FOREX is mainly on foreign currencies of other countries, like NGN/USD, EUR/USD, and JPY/NGN. I see a big difference between those two types of trading (cryptocurrency and FOREX). But well, let's see how it goes.

Hyphen(-)

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Quote from: Charles-Tim on June 14, 2023, 10:46:46 AM

Which means this has not been confirmed yet.

even from the heading of the content, it is a green light not something certain yet, but possibly it will be effected since this current administration look very serious to unify the dollar to naira exchange rate; therefore, they will try all possible means to make sure they achieve their aim.

Quote from: Adams0001 on June 14, 2023, 09:27:27 AM

Could this also be a good and positive sign that the Nigerian government will soon allow the trading of Cryptocurrency by banks in the soonest??

Hopefully, but the government is fully focused on making sure we have one exchange rate for now, maybe after that Bitcoin regulation will follow who knows.

Charles-Tim

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Quote from: Adams0001 on June 14, 2023, 09:27:27 AM

Could this also be a good and positive sign that the Nigerian government will soon allow the trading of Cryptocurrency by banks in the soonest??

I forgot to reply to this. Know that forex is entirely different from crypto. Commercial banks were even allowed to trade forex before until CBN decided not to supply commerical banks with foreign currencies again in 2021 or so (I have forgotten the year, you can correct me if wrong). Even if bank later accept crypto, not because of this.

Mate2237

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Forex trading and Cryptocurrencies trading are two different things. Me I no dey even interested in forex trading. But if the FG approve di use forex trading by banks then later run they might accept Cryptocurrency in the banks. But as Charles-Tim said the news not yet verify and confirmed so the blogger published the news without the prior notice of the original Source.
But I still believe that there is elements of truth from the news. And let us wait and hear from other sources because if really forex has been approved then there is probability of approving crypto.

Charles-Tim

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Quote from: from OP link

When Daily Sun called to confirm from sources at the apex bank and traders, there was no response. However, official confirmation will have to come later in the day when data from the FMDQ is available.

Daily Sun also understands official confirmation will be issued by the CBN.

~~Which means this has not been confirmed yet.~~ I have seen these all over the news.

Quote from: from OP link

Reports reaching Daily Sun indicate that the Central Bank of Nigeria (CBN) has given commercial banks and dealers in the forex market the green light to sell FX freely at a market-determined rate.

If true that CBN influence on Investors and Exporters rate has been removed, and individual can decide what the price would be, I think this will later be like parallel market. I mean the I&E rate will become close in price with the parallel market price. I may be wrong, according to the news:

Quote from: from OP link

For instance, for a buyer of the US dollar and the seller of the dollar in the I&E window, this will have an impact on the parallel markets which might be obliterated if Nigeria eventually has a free exchange rate which will be determined by participants.

Or maybe it means that the I&E price will be similar to parallel market price to the extent the parallel market rate will no longer exist, or people using it will significantly decrease.

~~But let us still consider this news not to be valid yet until there is official confirmation about it that it is true.~~

Adams0001

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Today, the central bank of Nigeria has allowed the trading of FOREX to all commercial banks freely. This was in tandem with the new administration motive to operate an unified exchange rate. Before this approval by the CBN, banks were not allowed to trade FOREX freely.

Could this also be a good and positive sign that the Nigerian government will soon allow the trading of Cryptocurrency by banks in the soonest??

Source: https://sunnewsonline.com/cbn-allows-banks-to-trade-freely-at-any-rate/

Topic: Commercial banks to trade FOREX freely, is this a good sign for crypto trading? (Read 152 times)