Sell Your Hoarded Dollars And Calculate Your Losses, Before It's Too Late

THE dollar is declining and could hit an unanticipated low before June as gasoline marketers began removing AGO (Diesel) from the Dangote refinery earlier this week. PMS lifts scheduled to start in May. The USD will further collapse as a result.

The rationale is that since a sizable portion of importers sourcing dollars are those who import petroleum products, the USD will be under less pressure and more dollars will be available to other importers who do not require as much currency as those who import petroleum products. This is because they now pay in Naira for lifting from the Dangote refinery.

The CBN has also made the banks' noose tighter. No one is able to obtain USD unless they truly require it. Your three-year tax certificates, international passport, visa, overseas vendor account number (which the bank will assist you in paying as you won't receive actual dollars), proforma, and any additional documentation your bank may require are all sent.

Also, your bank will need to apply to the CBN portal on your behalf. If the application is approved, your bank will transfer the specified sum into the account of your overseas vendor. There is no place for hoarding USD, as this would lead to unneeded artificial scarcity in the market.

You, as an importer obtaining dollars from the bank, are only eligible for twenty percent of the required total amount; furthermore, this amount will not be provided to you in cash. When you travel outside for your importation activities, the money will be deposited into your dollar card, which you can only use for purchases made outside of the nation. In Nigeria, you don't have any business expenses.

The same is true for people who shop at Bereaux de Change; in order to obtain USD from the Aboki, you must unquestionably require it for travel outside of Nigeria. No undocumented transactions exist anymore. You must turn in your BNV and NIN.

A copy of your admissions letter, school invoice, and account number must be submitted if you want to study abroad and wish to pay your tuition. The aboki will then assist with the payment.

There are no longer any unrecorded transactions, and you are not even allowed to take it out of the aboki or horde it. You, as a student, are entitled to twenty percent of the whole sum, just like an importer. In addition to the school fees, you could need additional cash for lodging, transportation, and other miscellaneous expenses.

 This twenty percent will not be given to you in cash by Aboki; instead, it will be deposited into a special facility that the CBN has created.

Read Also: CBN Bans Using Foreign Money As Security When Applying For Naira Loans

You might believe that you can buy your way into the game and win, but I don't think so because no aboki will want to mess about with his company. In actuality, they have all since registered with a 500 million Naira deposit and a 250k state operation.

An aboki must register with 500k and deposit 2 billion Naira in order to function countrywide. Yes, I did say two billion naira. Additionally, they risk losing their deposit for any transgression.

Since the CBN is now paying them $20,000 per week to trade with and they will pay the CBN in Naira, No Aboki will even favor you at the expense of his company. Even though they haven't met their goal, they can currently only receive $10,000; but, if more money becomes available, they will be able to receive the promised $20,000,000.

I doubt that any aboki will want to engage in dishonest behavior in order to forfeit this chance, as they will now need to provide documentation proving their usage of the USD they received the week before in order to be eligible for future payments. Is it possible that an aboki would wish to lose money by favoring you as a customer, given all the strings attached? No amount of political pressure will get him to play the ball.

For your information, 4273 abokis had their licenses revoked and their registrations canceled. It is still manageable to have more than 1500. Faster than light deregistration will apply to any noncompliant aboki.

This March was the first government allocation to be distributed without a dollar increase in a long time. It plummeted instead. I have faith that our extremely dishonest governors would have changed their state allotments to dollars prior to these initiatives, weakening the Naira and strengthening the dollar.

The inability of commercial banks to hoard funds once more is shocking. They must stay below a certain barrier, and everything over should be sold to their clients.

This also includes the earnings they make from dollar transactions, which the stockholders formerly shared. When the threshold is achieved, they should sell the spillovers. Any profit from the dollar transactions should be reinvested into their dollar firm.