Treasury Bills in Nigeria
I love my country

Thank God the moderator finally rescued us and Vacuumed unnecessary posts here. Well done Moderator.

Next Auction date for TB is ?

CBN Raises Rates at OMO Auction as One-Year Bill Hits 14.75%
https://businesspost.ng/2018/11/30/cbn-raises-rates-at-omo-auction-as-one-year-bill-hits-14-75/

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

Good analysis, but dollar normally appreciate from around october/november until around march every year in Nigeria.

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

What's the probability of further increase? Will Cbn not impose withdrawal limits again if one finds a way of buying up some good amount of dollars?

I did a 2 hours calculation on the Interest yield from TBills for a 3 year period at a stable 15 percent per annum and re-converted the yield and capital after 3 years to a more stable currency, my discovery was absolutely shocking.

In summary, Nigerian economy is unstable, inflation will continue to rise. Inflation kills proceeds from Investment at the International level.

All your Tbills proceeds in 10 years can be wiped out if a storm like what happened in Dec 2016 happens again. But keep investing and minimize risk through diversity.

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

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.

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.

thank bros i was almost lynched online by some fixed income newbies cos i tried explaining to them what happen to me investing in Nigeria fixed income for a decade that it not risk free ....my reasons for still holding naira securities is on the firm believe that the dangote refinary will knock out 40 percent dollar demand ..it this happen and we as a country dont open uo new frontier(in our luv for foreign things ) naira might revalue to 300 .....my thinking ohhhhh it might be wrong

condomuser:
I did a 2 hours calculation on the Interest yield from TBills for a 3 year period at a stable 15 percent per annum and re-converted the yield and capital after 3 years to a more stable currency, my discovery was absolutely shocking.

In summary, Nigerian economy is unstable, inflation will continue to rise. Inflation kills proceeds from Investment at the International level.

All your Tbills proceeds in 10 years can be wiped out if a storm like what happened in Dec 2016 happens again. But keep investing and minimize risk through diversity.

IF U KNOW , U KNOW....

ahiboilandgas:
thank bros i was almost lynched online by some fixed income newbies cos i tried explaining to them what happen to me investing in Nigeria fixed income for a decade that it not risk free ....my reasons for still holding naira securities is on the firm believe that the dangote refinary will knock out 40 percent dollar demand ..it this happen and we as a country dont open uo new frontier(in our luv for foreign things ) naira might revalue to 300 .....my thinking ohhhhh it might be wrong

We were almost lynched....

crude oil further dips to 58 dollars per barrel(cost of production in Nigeria 23 dollar per barrel ) remaing 35 dollar (sharing formula ) mnc vs ngeria state (60..40) nigeria state 21 x 1.8m barrels (37.8 million dollar daily )x 30 days 1.134 bn dollar s (Nigerian state dollar income ) nigeria state inport bill (1bn dollars) excluding black market demand ......no saving to defend the Naira ....70 dollar crude is fair ..................if u know u know if you dont know try and try ...just dont dump all your saving in tb and bond and sleep ...it more than that .....the raise in interest rate in america is affecting tb rates and value of the naira( complex world)

zamirikpo:


We were almost lynched....

Including me... hahahahahahaha.

ahiboilandgas:
crude oil further dips to 58 dollars per barrel(cost of production in Nigeria 23 dollar per barrel ) remaing 35 dollar (sharing formula ) mnc vs ngeria state (60..40) nigeria state 21 x 1.8m barrels (37.8 million dollar daily )x 30 days 1.134 bn dollar s (Nigerian state dollar income ) nigeria state inport bill (1bn dollars) excluding black market demand ......no saving to defend the Naira ....70 dollar crude is fair ..................if u know u know if you dont know try and try ...just dont dump all your saving in tb and bond and sleep ...it more than that .....the raise in interest rate in america is affecting tb rates and value of the naira( complex world)

It is getting serious.

condomuser:
I did a 2 hours calculation on the Interest yield from TBills for a 3 year period at a stable 15 percent per annum and re-converted the yield and capital after 3 years to a more stable currency, my discovery was absolutely shocking.

In summary, Nigerian economy is unstable, inflation will continue to rise. Inflation kills proceeds from Investment at the International level.

All your Tbills proceeds in 10 years can be wiped out if a storm like what happened in Dec 2016 happens again. But keep investing and minimize risk through diversity.

Explain the emboldened in a more concrete terms so everyone including the newbies understand. Explain how the money will become wiped out under the condition you highlighted above.

billtommy:
What's the probability of further increase? Will Cbn not impose withdrawal limits again if one finds a way of buying up some good amount of dollars?

Just one of the pros and cons. Investment sucees is based on what you find out yourself, and of course experience. It is not necessarily just about anything you are told. In the way to financial success there are several weights and distractions. Determination and focus are part of the winning tips.

dotcomnamename:
Thank God the moderator finally rescued us and Vacuumed unnecessary posts here. Well done Moderator.

Next Auction date for TB is ?

3 out of those 5 posts that was removed are yours .

Pajapaja:


3 out of those 5 posts that was removed are yours .

When will you quit being childish and contribute meaningfully like others?
Or are you a kid?
Please kindly move over to romance or joke section and banter with people in your IQ category rather than pouring spit all over the thread if you're incapable of grasping the technicalities going on here.

Your distractions and juvenile acts have been tolerated for too long already!

ahiboilandgas:
crude oil further dips to 58 dollars per barrel(cost of production in Nigeria 23 dollar per barrel ) remaing 35 dollar (sharing formula ) mnc vs ngeria state (60..40) nigeria state 21 x 1.8m barrels (37.8 million dollar daily )x 30 days 1.134 bn dollar s (Nigerian state dollar income ) nigeria state inport bill (1bn dollars) excluding black market demand ......no saving to defend the Naira ....70 dollar crude is fair ..................if u know u know if you dont know try and try ...just dont dump all your saving in tb and bond and sleep ...it more than that .....the raise in interest rate in america is affecting tb rates and value of the naira( complex world)

Remember that oil is not the only source of forex into the economy, I personally also earns dollars for the country along with several others in my line of work as well as Agro exports such as cocoa, then we also have gas exports. Although I receive news of naira devaluation against the dollar with mixed feelings since I earn in both currencies (even more in dollars). So, I don't know if I should get angry or be happy with such news

Galaxyowerri:

Remember that oil is not the only source of forex into the economy, I personally also earns dollars for the country along with several others in my line of work as well as Agro exports such as cocoa, then we also have gas exports. Although I receive news of naira devaluation against the dollar with mixed feelings since I earn in both currencies (even more in dollars). So, I don't know if I should get angry or be happy with such news

oil sale can be tracked and use for planing...other remittance are unreliable ..

People like this are partly responsible for the devalued Nigeria

jidobaba:

Did you ask for 14% in your instructions?
And did you invest 50m plus?

No & No. I wish I had 50m...I did not specify a rate.

ahiboilandgas:
People like this are partly responsible for the devalued Nigeria

Exactly...read the news few mins ago..u know how many pple that would have done this for the past few wks without being caught..Too bad

Galaxyowerri:


When will you quit being childish and contribute meaningfully like others?
Or are you a kid?
Please kindly move over to romance or joke section section and banter with people in your IQ category rather than pouring spit all over the thread if you're incapable of grasping the technicalities going on here.

Your distractions and juvenile acts have been tolerated for too long already!

Sssss. Ogbeni
What’s your problem?
Who are you to tell me what section to comment on Nairaland?
Are you the owner of Nairaland?
Or did you buy my gadgets for me ?
Or are you the one that bought my treasury bills for me ?
Oh oh
Oh
I get it . You’re also an Ipob sympathiser.
Lmao !
You people are so easy to spot on Nairaland these days .
So what you gonna do ?
Probably insult me and get banned ?
Lmao . Clown

Good evening guru's in the house please does anyone know about ecobank shares eti, in 2008 i bought 800units ever since them i have been trying to reach ecobank to make enquiry about my dividends if there any or even know the current valve of the shares but they are not responding, i know someone here will be able to advice, my major problem is that i am not in the country.
Thank You

Diyke4rich:
...i have been trying to reach ecobank to make enquiry about my dividends if there any or even know the current valve of the shares but they are not responding,...

Been trying to reach Ecobank? Is it via e-mail or phone? If yes, I advise that you physically go to the nearest branch and make your enquiry... unless you're outside Nigeria, of course.

Better still, the registrar's contact info should be on the share documents in your possession. Contact them directly and state your case. Shikena.

Wipe out implies making tb capital and interest useless. For example, according to statistics within the next five years the value of Naira against other major currencies will fly near or more than N510/$ (this already happened in 2016).

Now, If A and B has $100,000 each and A converts and invests $100,000 in TBills while B decides to smoke weed with $100 and keep $99,900, funny enough after 5 years B will still be richer than A.

But there are ways A can do slightly better than B by taking educated risks. In an unpredictable economy it is advised not to be a greedy investor.

hias2012:


Explain the emboldened in a more concrete terms so everyone including the newbies understand. Explain how the money will become wiped out under the condition you highlighted above.

mymadam:


Been trying to reach Ecobank? Is it via e-mail or phone? If yes, I advise that you physically go to the nearest branch and make your enquiry... unless you're outside Nigeria, of course.

Better still, the registrar's contact info should be on the share documents in your possession. Contact them directly and state your case. Shikena.

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

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

Try option 2 (the registrars), if you have the documents with you

[s]

Pajapaja:

Sssss. Ogbeni
What’s your problem?
Who are you to tell me what section to comment on Nairaland?
Are you the owner of Nairaland?
Or did you buy my gadgets for me ?
Or are you the one that bought my treasury bills for me ?
Oh oh
Oh
I get it . You’re also an Ipob sympathiser.
Lmao !
You people are so easy to spot on Nairaland these days .
So what you gonna do ?
Probably insult me and get banned ?
Lmao . Clown

[/s]

GonFreecss1:


Including me... hahahahahahaha.

condomuser:
Wipe out implies making tb capital and interest useless. For example, according to statistics within the next five years the value of Naira against other major currencies will fly near or more than N510/$ (this already happened in 2016).

Now, If A and B has $100,000 each and A converts and invests $100,000 in TBills while B decides to smoke weed with $100 and keep $99,900, funny enough after 5 years B will still be richer than A.

But there are ways A can do slightly better than B by taking educated risks. In an unpredictable economy it is advised not to be a greedy investor.

While I certainly agree with you sir on the need to hedge ogainst currency risk, We also need to fully explore the alternatives:

1. Doing NTBs at 14% average yield will turn your $100k to about $141k in 5 years should the naira crash from 360 to 510 in that period.

2. stashing your $100k in your dorm account would leave you with about $99k or less in 5 years.

3. doing US bonds, bills or notes at about 4% would turn the $100k to about $121k.

4. doing eurobonds at about 7% average would leave you with 140k.

However like I often like to think, timing is really key with investments.

Some people bought dollars at 250 and sold at 510, while some others bought at 520 only to sell at 380.

Investment should be a smart man's business.

Happy new month to us all!