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Nairaland Forum / Nairaland / General / Investment / Treasury Bills In Nigeria (4602565 Views)
Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)
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Re: Treasury Bills In Nigeria by vazsily(m): 2:36am On Sep 01, 2020 |
Pls who has the rate for the last treasury bill auction and when is the next? |
Re: Treasury Bills In Nigeria by awesomeJ(m): 2:40am On Sep 01, 2020 |
einsteine: You wrote too much for just one point. The only "obstacle" you pointed out is about currency reparation. First, it'll be flawed if your reasoning is that in a time of limited forex resources, the CBN's priority above the domestic economy is briesfcase hot monies (FPIs in case you're confused about that). Nobody forced them to come, and they didn't come to give the money for free. They were earning 13-17%. They were aware of the potential repartriation risk, and they had the forwards market to hedge with. They want to spend as little NGN as possible to get their USD, that's why they're waiting on the CBN. But obviously, unlike you expect, the CBN will not priotize their demand above that of the local economy, so they have to wait. Even school fees and medicals are probably treated with more priority as they should. It's only in your reasoning that proceeds of Nigerian oil should be used to settle foreigners, with Nigerians' needs ignored. Most of us think it should be Nigerians' first, and that's what the CBN is doing. And as for FDIs, the expectation already is that they shouldn't be in as much of a hurry to run away with their money. Plus for the past three years, we've been supplying them enough to repartriate with. If they won't be patient. Dollar is available at 470. But I guess they know better than you, and would rather wait to but at 380. So what other "obstacle" can you mention? 5 Likes |
Re: Treasury Bills In Nigeria by awesomeJ(m): 2:44am On Sep 01, 2020 |
einsteine: Yes it is. I'd really like to know. The CBN bans dorm accounts, someone is saying offshore banks, I buy my $100 or $12000 per week from aboki, how do I get it to them for deposits. |
Re: Treasury Bills In Nigeria by chigo4u: 4:08am On Sep 01, 2020 |
awesomeJ:You were silent when dollar rose from 360 to 470 after all your statements previously that dollar would crash latest this year and all of and sudden comes back to start making noise again because of cbn memo. Even if the dollar crashes back to 386, speculators will still rush and buy more and the cycle continues. Whether you believe it or not the cbn will keep devaluing until the pressure on dollar reduces significantly. 8 Likes |
Re: Treasury Bills In Nigeria by TotoNaRubber: 5:30am On Sep 01, 2020 |
awesomeJ:
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Re: Treasury Bills In Nigeria by ahiboilandgas: 7:39am On Sep 01, 2020 |
[quote author=TotoNaRubber post=93445394][/quote]that mean they know they will get the dollars at 386 soon if not they will take a lost and exit at 470.......they are the one investing in tb at 1.5 percents to mark time . .....i think going forward fpi should not be a source of forex to Nigeria.....they cause more damages or better they should have any guarantees .... |
Re: Treasury Bills In Nigeria by Cyberknight: 7:43am On Sep 01, 2020 |
chigo4u: Nigeria is like a wounded whale in the water giving off blood from its wounds - the sharks smell it and will always come back, no matter how you try to drive them away. 1 Like |
Re: Treasury Bills In Nigeria by AngelicBeing: 7:47am On Sep 01, 2020 |
Cyberknight:I like this your whale analogy, you are Spot on ![]() 2 Likes |
Re: Treasury Bills In Nigeria by Cyberknight: 7:51am On Sep 01, 2020 |
ahiboilandgas: True, hot money has a lot of disadvantages. But it generally takes advantage of structural weaknesses such as those which abound in Nigeria - for instance when the CBN was offering such wonderful interest rates on its T-bills, how could one not expect foreign portfolio investors to try to take advantage of that? |
Re: Treasury Bills In Nigeria by ahiboilandgas: 7:54am On Sep 01, 2020 |
Cyberknight:we need physical investment not portfolios ones ....tb should be for liquidity controls and inflations ...fpi should only invest in stocks.... 1 Like |
Re: Treasury Bills In Nigeria by Cyberknight: 8:04am On Sep 01, 2020 |
ahiboilandgas: Very few foreigners outside extractive industries have the appetite for Nigeria's wahala, despite its much-vaunted "large" market. Look at the nonsense the government is doing with Multichoice, for instance, obsessively interfering with cable TV which is a luxury item, not a basic human need. 4 Likes |
Re: Treasury Bills In Nigeria by ojesymsym: 8:21am On Sep 01, 2020 |
At least we can now see that CBN has not been as stupid as some had hitherto presumed. As Ahib has once said, they have a thinktank that run various models based on data at their disposal, the rest of us can have half baked arguments for all they care 2 Likes |
Re: Treasury Bills In Nigeria by awesomeJ(m): 8:22am On Sep 01, 2020 |
chigo4u: Quote one if such statements when I said dollar would crash latest this year. What did you expect me to say when dollar went from 360 to 470. Given the situation at the time it was expected. The only thing to say is that 360 to just 470 or even 480 amid a crisis that has affected the whole world is way better than the 180 to 520 we had in 2016. A simple objective reasoning is all you need to be convinced of that. |
Re: Treasury Bills In Nigeria by awesomeJ(m): 8:25am On Sep 01, 2020 |
TotoNaRubber: You really think $36bn in reserves is not enough to meet $5bn FPIs? Like I said, the issue is not about having enough, they're just not the priority for now. Let them wait. We'd rather pay them from future receipts. Afterall, they came and enjoyed 13-17% yields. |
Re: Treasury Bills In Nigeria by einsteine(m): 8:28am On Sep 01, 2020 |
awesomeJ: And you conveniently skipped the issue of subsidisation of currency rates. The market has shown that people don't mind buying dollars at prices as high as 480 yet your CBN is selling it at much lower rates than that for such things as personal travel and pilgrimage (let's even forget about those who will get at cheap CBN rates and sell at the correct rates). Any serious person knows who loses in this arrangement. If the CBN should make mistakes and offer dollars at prices cheaper than fair value, then people would swap it up and the prices would go back up. No matter of enthusiastic whining on your part can change that. 1 Like |
Re: Treasury Bills In Nigeria by awesomeJ(m): 8:32am On Sep 01, 2020 |
Cyberknight: If speculators rush and buy more at 386, shey they will also create another pandemic that will cut global demand for oil and crash prices terribly. cos without that, they will wait for long, as they did since 2017. If you're honest with yourself, would you not realize that without the virus, oil would have stayed above $50 dollars for most of 2020, the airports would not have been closed, and BDCs would have still been funded? Now we're in an exceptional situation, a d some people are having funny arguments. If you're sure, start loading up dollars at 450 now, let's see how it goes. |
Re: Treasury Bills In Nigeria by ahiboilandgas: 8:32am On Sep 01, 2020 |
einsteine:which people ? Speculators, smugglers, laundering rings , and confused and follow follow people.........genuine people like manufacturers,students , importer of legitimate goods are buying with form M and form A other bta and pta .... |
Re: Treasury Bills In Nigeria by einsteine(m): 8:32am On Sep 01, 2020 |
awesomeJ: You are wrong. I am not going to belabor the point. If you think lowering interest rates (which would lead to increased loan books on the part of banks) leads to a decrease in Naira supply, then I have nothing further to say. And on the part of the dollar/Naira issue, if you think 380 is the fair value for the dollar, I am willing to offer you as much naira as you want for as much dollar as you can supply at that price. |
Re: Treasury Bills In Nigeria by ahiboilandgas: 8:33am On Sep 01, 2020 |
Oil prices rise on falling US dollar |
Re: Treasury Bills In Nigeria by einsteine(m): 8:34am On Sep 01, 2020 |
ahiboilandgas: What are you talking about? Please read what you quoted because I don't understand how what you are saying and how it's appropos to my point. By the way, yes genuine people like students are buying from the CBN and repatriating it to sell at the proper price. |
Re: Treasury Bills In Nigeria by ahiboilandgas: 8:35am On Sep 01, 2020 |
einsteine:cos naira is picked in dust bins and dollars earned .....hear ur self... |
Re: Treasury Bills In Nigeria by TransAtlanticEx(m): 8:37am On Sep 01, 2020 |
einsteine:Leave him to continue fooling himself,making reference to 2016. 2016 was different,both problems to oil were temporar(militancy especially and price wars). The moment osibanjo visited ND and probably hand out envelops,militancy stopped. But today we are looking at a global dwindling demand for oil,so I wonder why any rational human will liken 2016 to today. Production cuts and oil at $45 is not enough to defend naira appropriately. Come monday,CBN will inject stipends in the name of intervention that won't be enough and the market will absorb it almost immediately and rates will turn again. These aren't favourable times,well anything can happen. But in today's |
Re: Treasury Bills In Nigeria by einsteine(m): 8:37am On Sep 01, 2020 |
As long as the CBN sells dollars at below fair value, people would always speculate and people would always defraud the country by "roundtripping" 5 Likes |
Re: Treasury Bills In Nigeria by ahiboilandgas: 8:38am On Sep 01, 2020 |
einsteine:the form A are credited to the school.accounts ...how will the school return to the students? Via magic...i paid 12k euro for my brothers msc im ireland.. 3 Likes |
Re: Treasury Bills In Nigeria by ahiboilandgas: 8:38am On Sep 01, 2020 |
einsteine:remove illegal demands from genuine demand then we get a fair value... 2 Likes |
Re: Treasury Bills In Nigeria by Cyberknight: 8:39am On Sep 01, 2020 |
awesomeJ: Lol. Are you saying that it's only an external shock, the coronavirus pandemic and its effects, that brought Nigeria's currency management to the sorry state it is in now? FYI, the naira started dropping in January. Secondly, speculators don't need an external shock to swoop in to attack, they just need somewhere where structural conditions favour their activities, and Nigeria is one such prime location. No external shock was present when the pound was removed from ERM in 92 and interest rates went up and the UK crashed into recession. 2 Likes |
Re: Treasury Bills In Nigeria by einsteine(m): 8:40am On Sep 01, 2020 |
ahiboilandgas: The point is flying over your head. Let me try to be clearer: if people are willing to buy diesel at 300 naira per litre and a father Christmas somewhere is selling at 200 naira (delivery inclusive), what do you think is going to happen? Won't people who have access to that Father Christmas buy and then sell at the proper price? In such a situation, what is better to encourage the Father Christmas in such foolishness or to tell the Father Christmas to allow the market to operate at the proper price? If you still don't get the point, then sorry that's the best I can explain 2 Likes |
Re: Treasury Bills In Nigeria by TransAtlanticEx(m): 8:40am On Sep 01, 2020 |
ahiboilandgas:You like to talk like you are in some fantasy land. Who is getting what with form M? So why is inflation rising then? Or are you saying all those companies hiking prices for imported goods are smugglers who bought from black market? |
Re: Treasury Bills In Nigeria by Cyberknight: 8:41am On Sep 01, 2020 |
einsteine: This is true, of course. |
Re: Treasury Bills In Nigeria by ahiboilandgas: 8:46am On Sep 01, 2020 |
ojesymsym:if u know the quality and numbers of data and research the r./d departments in cbn carries out daily we will not be having this discussion.....so u think u have more strategy and data more than solodu, mailafiya , kinsely,sunusi and co with lot of money and brain to carry out research....na our chari kambia points without any research go supercede their....i dey laugh....their over 200. people with phd in economic from world class university ware house inside the cbn... |
Re: Treasury Bills In Nigeria by awesomeJ(m): 8:46am On Sep 01, 2020 |
einsteine: You really need to humble yourself to learn. In a country where the vast majority live on low income with minimum wage at just 30,000. In your own funny reasoning, it's better CBN sells dollars at 480 than at 360 shey? So when FMN is buying durum wheat at $500 dollars a tonne from the international market, in your funny mind, it better the landing cost is 240,000 per tonne instead of 180,000? Who do you think will suffer it? The average woman struggling to buy bread loaves at 200 and 10 noodles at 500 will now have to pay 300 for the same loaf and 700 for the noodles and that's what makes sense to you. when her kids start going hungry because Mama's income can no longer buy as much food as before, you think that's when the CBN would have helped them? You don't just have to argue for the sake of it. Exchange rate stability is a means to price stability and that's one of the things a monetary authority can do to help citizens cope better with low/stagnating incomes. 9 Likes |
Re: Treasury Bills In Nigeria by ahiboilandgas: 8:49am On Sep 01, 2020 |
TransAtlanticEx:so u dont know they have devalues from 305 to 386 and increase vats by 50 percents? They fuel u dey buy since March and gas which dollars dem use import am ...go and get data from cbn to find out how many billions have been allocated to form m since march....forget all those room and palour ibo shops importing jeans and shirt for retail (stop using this as a bench mark )... |
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