See CBN Approach to Tackle FX hike Rate
In trying to find a solution to the falling naira, the Nigerian government through the Central Bank will now confiscate every dollars sent to you from abroad. They will refuse to pay you your dollars and convert the money and give you naira instead of the dollars sent to you. They believe doing so will starve the Bureau the change operators of dollars that if they starve them they will be able to control the exchange rate through the official rate alone. Now recall that the Central Bank don't have enough dollars to satisfy Nigeria and official rate is never available to the average citizens.
Now the people that feed the bureau the change operators with dollars are the people that they just stop from receiving money through IMTOs. So this directive is like cutting off a major source of supplies of dollars to the Nigerian market because it is never available in the banks. Can a merchant go the banks and get dollars up to $5,000 to demand commodities abroad, will it be available.
Why is this administration skating round the problems? They should stop treating symptoms and treat the disease.
The major problem is that there is shortage of foreign exchange. It was not the case in 2000 and early 2015. What change is that they mortgage future earnings by taking loans, what we are suppose to earn in the future has been use to take loans.
Why are they not affecting areas we can earn dollars?
- Stop Oil theft and stealing of our natural resources it is a waste of dollars
- Nigeria must move from consumption to production
Cutting off supply of dollars to the bureau the change is a try and error policy and don't be surprise the exchange rate will jump to NGN 2,000 per dollars. The bureau the change are the ones serving Nigerians with the purpose of Exchange. Let the government find a way to get supply of foreign exchange.
This my topic is not about the Domiciary account. That approach was not agreed upon by the assembly. If you read my topic i focus on the new plan to cut the supply of FX to bureau the change. Go through am it is entire different from the one you shared.
