You all heard of the ongoing CBN's Naira 4 Dollar promo scheme. Your banks must have notified you. You'd wonder what is all about. Here's it:
The CBN and FG of Nigeria are ready to encourage FX (USD) inflow into the country by this means. They are now trying to give incentive to everyone so as to reduce FX scarcity by encouraging you and I to bring in more dollars to the country. This will find a way to encourage more Nigerians in diaspora to bring in more inflows and save/invest at home. How?
- CBN'S Naira 4 Dollar Circular
1 USD = 5 Naira (reward)
What the Naira 4 Dollar scheme does is: for every USD you bring into the country through the IMTOs, you get 5 Naira each time.
By implication, if you receive 1000 USD via IMTOs, your bank will also give you N5 X 1000 and that's additional 5k!
This scheme is not for ever. Its to run between 8th March to 8th May 2021.
More details to follow.
In the meantime, let's encourage inflows of FX (USD) into the country. I believe this is a means to put less pressure in the FX-Naira position so as to improve the exchange rate of Nigerian Naira.
Ask any questions. (C) Bestnaija.ng
- Naira 4 Dollar
QUESTIONS ARISING:
1. Will this scheme really help the Naira/Dollar position in real sense?
2. Will this really solve FX scarcity?
3. Will the Naira's value against dollar improve now? Maybe go back to N200 per dollar?
CAUTION: FACTS TO NOTE
Guys, please note that Nigeria's forex problem originates from something way bigger than remittances from abroad, that is Nigeria’s Balance of Trade (BOT) and Balance of Payment (BOP). While encouraging remittance by means of N5 incentive is good as this may reduce the pressure on the limited FX resources of the CBN but we must realise that largely because 70% of those remittances are for domestic consumption; it will not even scratch the surface of the BOP/BOT problems.
This scheme will encourage an supply of forex to the economy thereby weakening the black market and stabilizing the Naira. But the truth is, there can never be an oversupply of FX in a nation that consumes more forex than it earns.
POWERFUL WAY FORWARD
While this may be a temporary artificial fix, the real proble is as stated above. Nigeria needs to produce more to help the Naira. We must earn more FX by consuming less of imported items. We must improve local content by helping the industries at home. Export is the golden way forward and we know it!
This feels like a temporary artificial fix that won't really hold water.
You all heard of the ongoing CBN's Naira 4 Dollar promo scheme. Your banks must have notified you. You'd wonder what is all about. Here's it:
The CBN and FG of Nigeria are ready to encourage FX (USD) inflow into the country by this means. They are now trying to give incentive to everyone so as to reduce FX scarcity by encouraging you and I to bring in more dollars to the country. This will find a way to encourage more Nigerians in diaspora to bring in more inflows and save/invest at home. How?
[attachment=0]cbn naira 4 dollar scheme bestnaija.jpg[/attachment]
[b]1 USD = 5 Naira (reward)[/b]
What the Naira 4 Dollar scheme does is: for every USD you bring into the country through the IMTOs, you get 5 Naira each time.
By implication, if you receive 1000 USD via IMTOs, your bank will also give you N5 X 1000 and that's additional 5k!
This scheme is not for ever. Its to run between 8th March to 8th May 2021.
More details to follow.
In the meantime, let's encourage inflows of FX (USD) into the country. I believe this is a means to put less pressure in the FX-Naira position so as to improve the exchange rate of Nigerian Naira.
Ask any questions. (C) Bestnaija.ng
[attachment=1]naira 4 dollar.jpg[/attachment]
[b]QUESTIONS ARISING:[/b]
1. Will this scheme really help the Naira/Dollar position in real sense?
2. Will this really solve FX scarcity?
3. Will the Naira's value against dollar improve now? Maybe go back to N200 per dollar? :shkd:
[b]CAUTION: FACTS TO NOTE[/b]
Guys, please note that Nigeria's forex problem originates from something way bigger than remittances from abroad, that is Nigeria’s Balance of Trade (BOT) and Balance of Payment (BOP). While encouraging remittance by means of N5 incentive is good as this may reduce the pressure on the limited FX resources of the CBN but we must realise that largely because 70% of those remittances are for domestic consumption; it will not even scratch the surface of the BOP/BOT problems.
This scheme will encourage an supply of forex to the economy thereby weakening the black market and stabilizing the Naira. But the truth is, there can never be an oversupply of FX in a nation that consumes more forex than it earns.
[b]POWERFUL WAY FORWARD[/b]
While this may be a temporary artificial fix, the real proble is as stated above. Nigeria needs to produce more to help the Naira. We must earn more FX by consuming less of imported items. We must improve local content by helping the industries at home. Export is the golden way forward and we know it!
This feels like a temporary artificial fix that won't really hold water.
