GTB still charge me More than the N198 per dollar. Why is it that GTB are not using the CBN approved rate of dollar after discontinue of BDC

Because GTB sources the dollars used to clear your transaction from the parallel market. Since the rate in the black market is high, you should expect your card transactions rate to be high.
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Contrary to what you may think, CBN doesn't supply dollars to banks for such transactions any more. The only bank transactions that will be backed by CBN exchange rate are LCs for approved items, medical bills, school fees, etc.

Bevista:
Because GTB sources the dollars used to clear your transaction from the parallel market. Since the rate in the black market is high, you should expect your card transactions rate to be high.
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Contrary to what you may think, CBN does supply dollars to banks for such transactions any more. The only bank transactions that will be backed by CBN exchange rate are LCs for approved items, medical bills, school fees, etc.

Thanks for dat....
So it doesn't applicable to online shopping?
What will happen if BDCs are not existing again ?

I'm tired of this country.

Codedzng:

Thanks for dat....
So it doesn't applicable to online shopping?
What will happen if BDCs are not existing again ?

The bank will source dollars at whatever rate it can find and then pass through the cost to any customer that wants to use his card for online transactions.

Bevista:
The bank will source dollars at whatever rate it can find and then pass through the cost to any customer that wants to use his card for online transactions.

Thanks for Ur well explanary response.....!!! I guess u r a banker or an economicist
Naija Don tire me ...... No future

Bevista:
Because GTB sources the dollars used to clear your transaction from the parallel market. Since the rate in the black market is high, you should expect your card transactions rate to be high.
---
Contrary to what you may think, CBN does supply dollars to banks for such transactions any more. The only bank transactions that will be backed by CBN exchange rate are LCs for approved items, medical bills, school fees, etc.

**doesn't**

Souljaboi1:
**doesn't**

Tnx boss! Modified.

Bevista:
The bank will source dollars at whatever rate it can find and then pass through the cost to any customer that wants to use his card for online transactions.

Fat lie banks get fx from CBN only BDCs are allowed to source from anonymous sources

@Op the banks are just greedy and promoting roundtripping activities

Bevista:
Because GTB sources the dollars used to clear your transaction from the parallel market. Since the rate in the black market is high, you should expect your card transactions rate to be high.
---
Contrary to what you may think, CBN doesn't supply dollars to banks for such transactions any more. The only bank transactions that will be backed by CBN exchange rate are LCs for approved items, medical bills, school fees, etc.

My brother, currently, if I send USD to someone in Nigeria (wire), can they withdraw in dollars?

BuddhaPalm:
My brother, currently, if I send USD to someone in Nigeria (wire), can they withdraw in dollars?

The CBN has directed all banks to honour USD transactions from their customers, so YES, they can withdraw.

Bevista:
The CBN has directed all banks to honour USD transactions from their customers, so YES, they can withdraw.

I cancelled the transaction and d seller refund my money back but to my surprise , GTB Refunded me with the CBN Rate N199.... Is this not a crime after deducting N285 and Refund me Back with N199....

Please do I need to visit the BANK ?

Codedzng:
I cancelled the transaction and d seller refund my money back but to my surprise , GTB Refunded me with the CBN Rate N199.... Is this not a crime after deducting N285 and Refund me Back with N199....

Please do I need to visit the BANK ?

Let me understand you. Did you make the initial payment from your domiciliary account? If so, that would be plain outrageous. But if you made the payment from your Naira account using MasterCard, then it's possible that the bank might charge you as high as N265 when selling you dollars but buy from you at N199. That is criminal.
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That is why a lot of people are calling for the CBN to devalue the official rate to converge the prices at the official and parallel market.

Bevista:
Let me understand you. Did you make the initial payment from your domiciliary account? If so, that would be plain outrageous. But if you made the payment from your Naira account using MasterCard, then it's possible that the bank might charge you as high as N265 when selling you dollars but buy from you at N199. That is criminal.
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That is why a lot of people are calling for the CBN to devalue the official rate to converge the prices at the official and parallel market.

I used my NairaMaster Card.... But Crediting my account back wit N199 per Dollar against N285 Charge Initially

Codedzng:
I used my NairaMaster Card.... But Crediting my account back wit N199 per Dollar against N285 Charge Initially

The CBN created that lacuna for commercial banks to exploit. I think the best bet right now is to get dollars yourself and pay into your domiciliary account. That way, the bank will give you back your exact dollars when you need it. But that will mean that you'll need a USD MasterCard for your online transactions. That might set you back $40 annually (card issuance/maintenance fee).

Banks are making a lot of money from this roundtripping with the help of CBN.

They make dollar scarce on purpose so the parallel market rate will be high and they cut deals with the BDC operators. You'll always see mallams every morning at almost all banks especially GTBank.

I used my NairaMaster Card.... But Crediting my account back wit N199 per Dollar against N285 Charge Initially

^^^
It's wrong. Official rates is 199 the op should have been charged at that rate. CBN should sanction erring banks.

CBN should make rules and policies to make Naira VERY SCARCE and dollars in excess and watch the rate at which dollar at the parallel market will depreciate.

the banks are just using the situation to enrich their pocket. You make use of their cards for online payment, they charge you high, you request for refund, instead of them to refund you exactly what they charged you, they refund you CBN official rate. Who is deceiving who, banks or CBN

yimikaa:
CBN should make rules and policies to make Naira VERY SCARCE and dollars in excess and watch the rate at which dollar at the parallel market will depreciate.

Having a strong Naira is not necessarily a positive. This will make imports cheaper thereby continuing to promote capital flight. What is important is for the Naira to be "appropriately priced" to reflect market realities.
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The FG and the CBN should come up with Import Substitution policies & programs to encourage investment in local production facilities. Once we begin to import less, that will reduce the demand for dollars, thereby helping to strengthen the Naira. An even more ideal situation would be for us to export more, thereby earning more dollars into the country.
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A combination of Exports & Import Substitution will definitely strengthen the Naira without the CBN having to take any extraordinary actions.

@ bevista how about dollar MasterCard on naira account. what's the exchange rate for that

mikolo80:
@ bevista how about dollar MasterCard on naira account. what's the exchange rate for that

You cannot have dollar MasterCard on a Naira account. You can only have a dollar MC on a domicilary (USD) account. In that case, there is no exchange rate involved since you are spending the exact dollars you have in your account.
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Any MC on Naira account is Naira MC and will always require conversion anytime you make a transaction.

Bevista:
You cannot have dollar MasterCard on a Naira account. You can only have a dollar MC on a domicilary (USD) account. In that case, there is no exchange rate involved since you are spending the exact dollars you have in your account.
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Any MC on Naira account is Naira MC and will always require conversion anytime you make a transaction.

Eheeeen so I don enter one chance be dat
speculating not my forte at all
should have changed my money when it was still 200

mikolo80:
Eheeeen so I don enter one chance be dat
speculating not my forte at all
should have changed my money when it was still 200

*lol*. Sorry boss!

Bevista:
Having a strong Naira is not necessarily a positive. This will make imports cheaper thereby continuing to promote capital flight. What is important is for the Naira to be "appropriately priced" to reflect market realities.
---.

Having a strong Naira is a positive. We can always stop capital flight. Good policies with implementation can handle all that.

yimikaa:
Having a strong Naira is a positive. We can always stop capital flight. Good policies with implementation can handle all that.

Having a strong Naira without the necessary economic fundamentals to support it will be a disaster. A strong Naira (say, N100/$) will simply make imports cheaper thereby increasing our appetite for foreign goods and assets. With oil prices at $30, FX inflow into the country is at 10yr lows. Add that to record import demand, and your FX Reserves will become Zero in 3 months.
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You don't strengthen the Naira and then implement policies to prevent capital flight. You first make policies that encourage exports & import Substitution and then capital flight will naturally be reduced. This will also, naturally, strengthen the Naira.
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What you are proposing is placing the cart before the horse, and it will only be Counterproductive with cataclysmic consequences.

Bevista:


You don't strengthen the Naira and then implement policies to prevent capital flight. You first make policies that encourage exports & import Substitution and then capital flight will naturally be reduced. This will also, naturally, strengthen the Naira.

I don't agree with this. We have been doing what you stated above for years has anything changed?.Forget about what's written in the books.

Bevista:
The CBN has directed all banks to honour USD transactions from their customers, so YES, they can withdraw.

Thanks man.

Codedzng:


I cancelled the transaction and d seller refund my money back but to my surprise , GTB Refunded me with the CBN Rate N199.... Is this not a crime after deducting N285 and Refund me Back with N199....

Please do I need to visit the BANK ?

mail cbn and complain

warrenweste:



mail cbn and complain

Will they reply me ? I will try cos N86 different No be beans

yimikaa:


I don't agree with this. We have been doing what you stated above for years has anything changed?.Forget about what's written in the books.

So what do you propose? Do you understand the situation the country is in? use of administrative controls provide opportunity for arbitrage and people will take advantage of that. Which ever channel we decide to use BDC,banks even THE cbn, as long as the exchange rate is not market driven whoever is involved in process of allocating these resources is likely to exploit the situation to their benefit.

Codedzng:


Will they reply me ? I will try cos N86 different No be beans

sure they will

It is to avoid round tripping, some people travel out of the country and use their naira Mastercard to withdraw dollars expectedly at the official rate (N198), they return with the dollar and goes to mallam by the roadside to exchange for N280 profiting over N70/$.
Imagine withdrawing $7000 in a week with this method, the bank realize these and therefore charge high on naira to dollar transaction.