Nnamz:


Believe me I'm thinking of introducing him to this tbills stuff. Although he did get 18% in his fixed deposit, but he should see reason with me once I tell him that even with a lower interest in tbills, he could reinvest that interest, and still reinvest the interest from the reinvested interest. That way he's making more from compounded 14% interest, than just waiting for one year for 18% interest

wura2020:

Which bank pays interest on domiciliary account. I am interested.

Nnamz:


Believe me I'm thinking of introducing him to this tbills stuff. Although he did get 18% in his fixed deposit, but he should see reason with me once I tell him that even with a lower interest in tbills, he could reinvest that interest, and still reinvest the interest from the reinvested interest. That way he's making more from compounded 14% interest, than just waiting for one year for 18% interest

Diyke4rich:



I am not in the country that is my major problem, i have tired to reach them on phone email no one is responding

RealityShot:
you are still thinking..

i have been trying to convince mine and his rich friends and some youths (even one who entered Npower 2years ago) since last year when tbills was 18%.. They still don't want to or care ..

i am beginning to think that Nigerians are not very financially savvy and don'twant to learn.

one of my dad's friends put over 200 million in unity bank from 2014 to 2016 and earned 6% ... When i told him about tbills @ 14% he never talked about it again.

Tbills is not for everyone.
Everyone cannot be WARREN BUFFET.

TOO BAD

RealityShot:
you are still thinking..

i have been trying to convince mine and his rich friends and some youths (even one who entered Npower 2years ago) since last year when tbills was 18%.. They still don't want to or care ..

i am beginning to think that Nigerians are not very financially savvy and don'twant to learn.

one of my dad's friends put over 200 million in unity bank from 2014 to 2016 and earned 6% ... When i told him about tbills @ 14% he never talked about it again.

Tbills is not for everyone.
Everyone cannot be WARREN BUFFET.

TOO BAD

feelamong:


Exactly why its important to hedge your Treasury Bills bet with Eurobonds investments!

as a policy, i always have about 40% of my Investments in Dollars (Eurobonds) The returns may be low but in times of devaluation, you will be surprised at how much you have gained in Naira.

ahiboilandgas:
Naira loses value trading at 370 ...meaning we have loss 1 percent of our naira holdings in treasury bills..meaning if I changed 3600000 to 10 k dollar last week my money is now 9720 dollars loading 280 dollars (120 k naira ) loss ..so if I invested the 3.6 m at 91 day for 10.5 my interest will be around 93000 but I loss 120000 k due to foriegn exchange risk....understanding the investment ....we hope the crude oil price stabilize

Donbrig:
I don't just know why some people like to inflict others with their fears. Naira is temporarily weak at the moment like every other world currencies is not enough reason to spread fear that would later deepen the weakness of our local currency. The more we buy dollars and invest in foreign currencies, the more naira will depreciate, not just oil prices falling is the main problem to naira. Naira is not just weak, but because Nigerians and their politicians are weakening naira by dollarising our economy.

Donbrig:
I don't just know why some people like to inflict others with their fears. Naira is temporarily weak at the moment like every other world currencies is not enough reason to spread fear that would later deepen the weakness of our local currency. The more we buy dollars and invest in foreign currencies, the more naira will depreciate, not just oil prices falling is the main problem to naira. Naira is not just weak, but because Nigerians and their politicians are weakening naira by dollarising our economy.

GonFreecss1:



Hahahahahaha. So you think buying Tbills will help the naira? You lot are very funny.

How many of you support Nigerian businesses? Or invest in a friends business? Or even buy stocks? The answer? Few of you Tbills people are willing to take that risk. So don't use the strengthening the naira angle, because Treasury bills does not in any way strengthen the naira. If anything it weakens it.

You are all here because you want to make money and preserve your wealth. If Tbills is safe for you and with your scope of understanding, by all means do it, no one is forcing you. What is annoying the most is we are all adults here, so how can someone's opinion on the internet you have never met influence your decision or scare you? Except if they are right, and that is a truth you don't want to face. If they are not right, you should be happy and keep investing in your Tbills. Infact you will probably make more money in naira if less and less people do not subscribe to it, so why are you worried?

If you want to strengthen the naira, invest in Nigeria's businesses especially businesses that create goods and services that can be exported. If you want to support the naira, why not find a way to do a job where they pay you for services in forex? With that you make forex less scarce in the country, you increase the supply relative to a lower demand. The naira will increase in value. Don't start spouting theories you don't understand because you are biased about Tbills.

The sooner most of you understand what money is and learn more about finance the better. Some of you think money is value, you don't know it's basically a debt instrument.

Ifelove1:

I think I misunderstood your question. I thought you asked two separate questions.
9,450,000 * (11.7/100) * (98/364) = 297,675
9,600,000 * (11.7/100) * (98/364) = 302,400

Galaxyowerri:
[s][/s]

Freedem:




You contradicted yourself
in your argument.

Tb can indeed improve the currency exchange rate of a country by reducing money supply and attracting hot forex because of the interest rate..

Freedem:




You contradicted yourself
in your argument.

Tb can indeed improve the currency exchange rate of a country by reducing money supply and attracting hot forex because of the interest rate..

GonFreecss1:



Hahahahahahahaha. Where do you think money to pay up TB bills interest comes from? Inflation. How does printing more naira help the naira? The naira the government collects is not burnt, but used to pay for other things. Meaning Naira is still in circulation and more will be after interest is paid. If the naira was burnt, this will be an entirely different discussion, but it's not. More naira total supply, more inflation. Have you ever heard there is naira shortage before? With all the Tbills we do, I have never heard of naira shortage, but what about FX shortage? One is currently happening now, 1 USD is 370 naira. Why didn't our lovely sexy Tbills help us bring more investors? Or turn 1 USD to at least 300 naira? Lol!

And how many investors will convert USD to naira to buy Treasury bills in naira? When there are charts over the years showing how naira consistently lost to the dollar, the major thing investors come to put money here in is your stock companies. Not Treasury Bills, as that will be very stupid of them. Stock as it is is already subject to fx risk, I am wondering why someone will come here solely for your Tbills. Go and check the Nigerian stock market, institutional investors are leaving because of Uncertainty about elections and hoping to avoid Foreign exchange risk.

So let's hear it properly how I contradicted myself. Like I said, so many biased individuals here that only want to hear themselves. What people choose to do with their money is not my business, but talking about something you know nothing about is funny. Bring your points we are waiting, as we wait for you, why not read more on finance like I advised earlier? Or Economics will be okay too. Should help you see the light.

RealityShot:
you are still thinking..

i have been trying to convince mine and his rich friends and some youths (even one who entered Npower 2years ago) since last year when tbills was 18%.. They still don't want to or care ..

i am beginning to think that Nigerians are not very financially savvy and don'twant to learn.

one of my dad's friends put over 200 million in unity bank from 2014 to 2016 and earned 6% ... When i told him about tbills @ 14% he never talked about it again.

Tbills is not for everyone.
Everyone cannot be WARREN BUFFET.

TOO BAD

GonFreecss1:



Hahahahahahahaha. Where do you think money to pay up TB bills interest comes from? Inflation. How does printing more naira help the naira? The naira the government collects is not burnt, but used to pay for other things. Meaning Naira is still in circulation and more will be after interest is paid. If the naira was burnt, this will be an entirely different discussion, but it's not. More naira total supply, more inflation. Have you ever heard there is naira shortage before? With all the Tbills we do, I have never heard of naira shortage, but what about FX shortage? One is currently happening now, 1 USD is 370 naira. Why didn't our lovely sexy Tbills help us bring more investors with FX to prevent that? Or turn 1 USD to at least 300 naira? Lol!

And how many foreign investors will convert USD to naira to buy Treasury bills in naira? When there are charts over the years showing how naira consistently lost to the dollar, the major thing investors come to put money here in is your stock companies. Not Treasury Bills, as that will be very stupid of them. Stock as it is is already subject to fx risk, I am wondering why someone will come here solely for your Tbills. Go and check the Nigerian stock market, institutional investors are leaving because of Uncertainty about elections and hoping to avoid Foreign exchange risk.

So let's hear it properly how I contradicted myself. Like I said, so many biased individuals here that only want to hear themselves. What people choose to do with their money is not my business, but talking about something you know nothing about is funny. Bring your points we are waiting, as we wait for you, why not read more on finance like I advised earlier? Or Economics will be okay too. Should help you see the light.

Freedem:



If you don't understand that the sales of treasury bills support the currency by draining cash from the market, curbing speculative demand for foreign exchange then I can't help you.

Indigbo:


What if I liquidate 9,600,000 before maturity how much am I going to lose after one or two weeks because I need money urgently?

GonFreecss1:


I don't need your help sir. I have been doing fine over the years with my own way of doing things.

So let me get this straight, you read that it drains cash from the market, but help me to understand this, that money is not burnt, it goes back into circulation when the government pays bills, how in the hell does this reduce supply? This is common sense. How does this drain cash from the market? When the currency is put back in the market to pay bills? I don't do trend speak, I am not a doing what majority is doing kinda guy, that has helped me and still does till date. You keep stating a theory, that you read on the internet or textbook but I am asking you where does the naira go? Let everyone hear it.

GonFreecss1:


I don't need your help sir. I have been doing fine over the years with my own way of doing things.

So let me get this straight, you read that it drains cash from the market, but help me to understand this, that money is not burnt, it goes back into circulation when the government pays bills, how in the hell does this reduce supply? This is common sense. How does this drain cash from the market? When the currency is put back in the market to pay bills? I don't do trend speak, I am not a doing what majority is doing kinda guy, that has helped me and still does till date. You keep stating a theory, that you read on the internet or textbook but I am asking you where does the naira go? Let everyone hear it.

ahiboilandgas:
bro cbn drains excess liquidity via tb and omo auctions ,this limit the naira in the system available to buy forex at the interbank markets ,helps in strengthen the naira too ,treasury bills are used as control monetary tools also to meet short term financial demand by the govt ...they can warehouse the money to curb inflation,protect the naira or borrow govt via bond or encourage saving via saving bonds

GonFreecss1:


Seriously? Have you ever heard of scarce naira?

I haven't. I don't care what the theory states, I deal with reality and that reality is that total money supply is still an X (money paid by investors for Tbills) + newly printed money + whatever was formerly removed from previous X for the government to pay bills, or interest rates on bonds, tbills salaries etc. On and on... it would have sounded good if we operated on deflation, but we don't. We do not burn our naira. Less naira today still means more tomorrow, and the less that should have been for tomorrow means more for the day after. It's a zero sum game, at the end of the day more money is created. You hide money for the present and reintroduce it in the future, it doesn't change the fact that more money backed by only government trust is created from thin air. Hereby what you have and call money is not value, just a debt system in which the value of money continues to go downwards. Inflation, especially infinite inflation can never help the value of any currency. Current supply means nothing, but total supply over time is the real deal and the major problem of inflation.

vacanci:


Are u not aware that old notes, mutilated notes and one's no longer legible and recalled by the CBN from time to time?

What do u think happens to those? I don't know if they are burnt but I do know that they are destroyed and the equivalent will be reprinted over time.

GonFreecss1:


Seriously? Have you ever heard of scarce naira?

I haven't. I don't care what the theory states, I deal with reality and that reality is that total money supply is still an X (money paid by investors for Tbills) + newly printed money + whatever was formerly removed from previous X for the government to pay bills, or interest rates on bonds, tbills salaries etc. On and on... it would have sounded good if we operated on deflation, but we don't. We do not burn our naira. Less naira today still means more tomorrow, and the less that should have been for tomorrow means more for the day after. It's a zero sum game, at the end of the day more money is created. You hide money for the present and reintroduce it in the future, it doesn't change the fact that more money backed by only government trust is created from thin air. Hereby what you have and call money is not value, just a debt system in which the value of money continues to go downwards. Inflation, especially infinite inflation can never help the value of any currency. Current supply means nothing, but total supply over time is the real deal and the major problem of inflation.

If dollar to naira rate moved from 360 naira to 1000 in 1 day, then went back to 360 naira the next day, but after 5 years it's 200 naira to a dollar, no one will remember that 360 naira to 1000 in a day, as it will be like a spec of dust in the charts. We are talking long term effect. [b]It is why I am still looking for a way to calmly reply the guy that gave me a list of calculations to do, with fixed figures and assumptions with a 5 year span. I could also come up with figures and my own year spans to favor my argument. That will be stupid of me as I don't have to do that, why? History is there to show him, me and all of us that over time the dollar has done better with respect to the naira even if we include that small period when we went to 520 naira to a dollar and back to 362, that period means nothing over time, as it will be in years to come if Nigeria continues to handle things like this. Even if you compounded your Tbills, many of you don't know as you can compound your interest so is inflation compounded. That is why we can't spend 1 naira again, 5 naira is useless, and 10 naira is almost useless, I implore all of you to pick an average interest rate and make your principal 1 naira (as in 1 naira note) and compound it over time, then you will begin to understand that anything easy can't make you rich.
[/b]
Oh! No need to reply him again, I think this explanation should do.

So what I am trying to say is if the government keeps creating more money from thin air, taking it back from us is not strengthening the naira in any way, we are just delaying the inevitable, as we usually do in Nigeria.

Can the naira be stronger in the future? Of course, but from what I can see, not anytime soon if we continue like this.

Freedem:



You can only burn excess cash when it's not tied to an asset.


Think of it this way


My total cash available is 100 naira

I want to drain 50 naira from the market so I sell 50 naira worth of tb.. with a maturity date..


So now there's only 50 naira left in my market , money supply has been reduced..

Now as soon as d the tb matures , I repay the 50 naira and resell another tb for 50 naira the next year .. can be adjusted for with monetary plans.


If you look at this simple analysis, you'll find that no new money as been created, it's just a cycle of liquidity and less liquidity..

GonFreecss1:


Seriously? Have you ever heard of scarce naira?

I haven't. I don't care what the theory states, I deal with reality and that reality is that total money supply is still an X (money paid by investors for Tbills) + newly printed money + whatever was formerly removed from previous X for the government to pay bills, or interest rates on bonds, tbills salaries etc. On and on... it would have sounded good if we operated on deflation, but we don't. We do not burn our naira. Less naira today still means more tomorrow, and the less that should have been for tomorrow means more for the day after. It's a zero sum game, at the end of the day more money is created. You hide money for the present and reintroduce it in the future, it doesn't change the fact that more money backed by only government trust is created from thin air. Hereby what you have and call money is not value, just a debt system in which the value of money continues to go downwards. Inflation, especially infinite inflation can never help the value of any currency. Current supply means nothing, but total supply over time is the real deal and the major problem of inflation.

If dollar to naira rate moved from 360 naira to 1000 in 1 day, then went back to 360 naira the next day, but after 5 years it's 200 naira to a dollar, no one will remember that 360 naira to 1000 in a day, as it will be like a spec of dust in the charts. We are talking long term effect. [b]It is why I am still looking for a way to calmly reply the guy that gave me a list of calculations to do, with fixed figures and assumptions with a 5 year span. I could also come up with figures and my own year spans to favor my argument. That will be stupid of me as I don't have to do that, why? History is there to show him, me and all of us that over time the dollar has done better with respect to the naira even if we include that small period when we went to 520 naira to a dollar and back to 362, that period means nothing over time, as it will be in years to come if Nigeria continues to handle things like this. Even if you compounded your Tbills, many of you don't know as you can compound your interest so is inflation compounded. That is why we can't spend 1 naira again, 5 naira is useless, and 10 naira is almost useless, I implore all of you to pick an average interest rate and make your principal 1 naira (as in 1 naira note) and compound it over time, then you will begin to understand that anything easy can't make you rich.
[/b]
Oh! No need to reply him again, I think this explanation should do.

So what I am trying to say is if the government keeps creating more money from thin air, taking it back from us is not strengthening the naira in any way, we are just delaying the inevitable, as we usually do in Nigeria.

Can the naira be stronger in the future? Of course, but from what I can see, not anytime soon if we continue like this.

Pajapaja:

Galaxy Owerri
Igbos are bastards and terrorists

Freedem:



You can only burn excess cash when it's not tied to an asset.


Think of it this way


My total cash available is 100 naira

I want to drain 50 naira from the market so I sell 50 naira worth of tb.. with a maturity date..


So now there's only 50 naira left in my market , money supply has been reduced..

Now as soon as d the tb matures , I repay the 50 naira and resell another tb for 50 naira the next year .. can be adjusted to for in with monetary plans.


If you look at this simple analysis, you'll find that no new money as been created, it's just a cycle of liquidity and less liquidity..

Indigbo:


can someone advice whether the best is to liquidate now because I'm scared of this inflation thing am hearing here, I don't want to lose my hard earned cash. Pls how much will i lose if i liquidate now 9,600,000?