Donsheddy:
All this one na plenty talk...
Anybody wey join the business of hoarding dollars for short term naim go cry....
I don't know how far the naira will gain against the dollar but one thing is certain it will still pump again...
And if it does it will certainly break the current...
We just the postpon the inevitable....

As long as we still have corruption...
Insecurity...
Millions of Jobless youths...
No industry...
No electricity...

Etc....

Naira willl never be stable e go rise....

See how we gradually rose from 150 to 1900

Now dancing around 1100 is this gain or loss ...

Still the same mantra of the old...
Borrow borrow borrow borrow....

awesomeJ:


Some people think the fact that we're using FPI money is an issue. The fact is dollars will always flow into the economy, but it's better to get them in at #1000 instead of at #2000.

Remittances for instance regardless of exchange rate, at least $20bn will still flow in.

If they're exchanged at #1000, money supply grows by 20trn, if at #2500, it grows by 50trn,

So while we may expend $1bn on interests and capital gains to FPIs, we're saving 30trn in excess money that would have added huge inflationary pressures.

Also, with naira assets looking more attractive, there's a significant decrease in thirst for using USD as a store of values by resident Nigerians, this is driving down demand for USD, and perhaps increasing supply with some individuals now incentivised to sell off their USD positions and make better returns on naira assets.

awesomeJ:


20% compounded over 5 years = 358%.
Those who kept their 520 dollar in 2017 and waited till 2024 can now sell at 1100 only 212%.

As long as your dollar is lying idle, speculation will always underperform.

skydiver01:
Which investments are you particularly referring to? TBills?

awesomeJ:

We're currently in week 15/52 this year, your ignorant assumption is that the CBN has taken $1bn dollars every 3 weeks, why has our reserves not depleted by $5bn

I wonder why you're blind to the fact that $7bn of backlog were knocked off, and currency's value has been restored from 1900 to 1100 yet only $1bn has been used from the reserves?

Now that there's no more backlog to clear and they only need to gain #100-200 more instead of #800 that they already did. If you were objective enough you'd see that they wouldn't need up to $3bn more from the reserves.

Again stop assuming in ignorance that reserves are for decoration. They're serving their purpose at this time. The only surprise here is that only $1bn has been used when it should have been up to $10bn.

jedisco:


I agree with your last paragraph in addition to the hidden fact that due to recent UK immigration change has resulted in a significant reduction in the number of students going for masters abd hence less chase for forex.

However, the first section on FPIs and money supply is convoluted. The CBN printed (i.e increased our money supply) by over 50 trillion in the last few years. Was this done due to increased forex inflow?



You're comparing apples to oranges

What local investment instruments would have given a reasonably safe 20% yield between 2017 and 2024?

What would be the return today if that dollar converted in 2017 was invested in the S&P or a global index?

Have you seen what Argentina' interest rate is? Argument could be made to move all investments to Argentinian Peso

LordAdam16:


When did the intervention start?



Of the $7B backlog, they cleared $5B and struck off $2B as invalid.
Of that $5B they cleared, they got $2B in loans from AfriEXIM bank and $2B from FPIs.
CBN also now receives oil sales receipt from the NNPC.

And they did not need to dip into the reserves until they started the intervention.
Most of the money used for the backlog clearance will have to be repaid.
They cleared the backlog with debt.



So if it will take $3B to move the rate to 900, why not spend $10B to move it 300?
In fact, why stop there?
Why not spend $13B to move it to 100. Or $15B to make it $1 to N1.
After all, the reserves are not for decoration.

Spend the money to peg the rate and your feelings will keep it at that rate forever. Like magic!

-Lord

awesomeJ:

I think you should just sell your dollars and rest.
As far as I'm concerned, the government owes no obligation to granting your whims of dollar at 3000 at the expense of citizens' purchasing power.
It's your money, you keep it, you lose it, you speculate with it, it's your business.
CBN sales to retail users have only been about $64m all year, but just as greed drove rates to 1900, fear is being quite effective now too. 1070 in some corners already.

LordAdam16:


When did the intervention start?



Of the $7B backlog, they cleared $5B and struck off $2B as invalid.
Of that $5B they cleared, they got $2B in loans from AfriEXIM bank and $2B from FPIs.
CBN also now receives oil sales receipt from the NNPC.

And they did not need to dip into the reserves until they started the intervention.
Most of the money used for the backlog clearance will have to be repaid.
They cleared the backlog with debt.



So if it will take $3B to move the rate to 900, why not spend $10B to move it 300?
In fact, why stop there?
Why not spend $13B to move it to 100. Or $15B to make it $1 to N1.
After all, the reserves are not for decoration.

Spend the money to peg the rate and your feelings will keep it at that rate forever. Like magic!

-Lord

bjtinz:
With the extension in holiday, will the bids still hold this week? Friday perhaps

Vickyace:
Please can someone help with the calculation if I winvest 1 million in treasury bills either for 6 months or a year. Please it is urgent. I need help.Thanks

Vickyace:
Please can someone help with the calculation if I winvest 1 million in treasury bills either for 6 months or a year. Please it is urgent. I need help.Thanks

Tranquility2345:


Please no vex o. But did you pass maths for WAEC? I’m only asking because this calculation is very basic.

tabithababy:
Good morning everyone, please is there any good Samaritan here that can briefly put me through on how to go about this treasury bill Like which bank is the best to open account with , and is it savings or current account i need to open,,,,, will one million be enough to start with, and how do i know when to fill the form for auction Please somebody should help me answer these questions.

Acidosis:


Tabitha, don't put money in a thing you do not understand.

tabithababy:
Good morning everyone, please is there any good Samaritan here that can briefly put me through on how to go about this treasury bill Like which bank is the best to open account with , and is it savings or current account i need to open,,,,, will one million be enough to start with, and how do i know when to fill the form for auction Please somebody should help me answer these questions.

emmasoft:


@tabithababy your intentions to go into tbills is good but I hope it's not just the fact that you heard about high rates only that serves as your motivation otherwise I advice read more on investment generally tbills inclusive so that you understand what you about to go into and be well guided.
That's by the way.

Investing in tbills through primary auction is very straightforward.
First, you don't need any special dedicated bank account. Your bank account you have currently whether current or savings will do except you just want to change your bank.

For a bank like Stanbic 100k is minimum and I believe some others will accept less than a million as well. Minimum deposit for tbills is determined by individual banks.

Primary auction for Tbills is done fortnightly and on Wednesdays, if you wish to participant, you will make your intentions known to your bank latest by 10am the Tuesday preceeding the auction date.
However, the day and date is distorted this week because of the holidays.

Another investment window that guarantees your capital and fully regulated is money market fund.
You can start that with as low as 5k.

If you need further clarifications on tbills or mutual funds kindly reach out to me with the numbers on my signature.

tabithababy:
. God will continue to bless you Sir. Thank you so much

Donsheddy:
All this one na plenty talk...
Anybody wey join the business of hoarding dollars for short term naim go cry....
I don't know how far the naira will gain against the dollar but one thing is certain it will still pump again...
And if it does it will certainly break the current...
We just the postpon the inevitable....

As long as we still have corruption...
Insecurity...
Millions of Jobless youths...
No industry...
No electricity...

Etc....

Naira willl never be stable e go rise....

See how we gradually rose from 150 to 1900

Now dancing around 1100 is this gain or loss ...

Still the same mantra of the old...
Borrow borrow borrow borrow....

ogawisdom:
Dollar- Naira so someone cannot play with you again

Naira - Play kill you there




Dollar still dey collect daily

Itsrm:
First banks bid was successful at 20% interest rate.