ojesymsym:
I do not think there will be need for any future devaluation because the official rate is now just a little below the black market rate. That means they now move together

Odunharry:

Two weeks time most likely

awesomeJ:


Have they changed the meaning of "Luckily"? 😁😁

presiade:


I did not follow the discussion that led you here, but I think before floating the naira, the Emefiele-led CBN was fixing the naira/dollar rate to whatever they wanted, and the rate this administration met was not truly representative of the value of the naira back then after Emefiele minted naira like pure water.

tweakstar:


Ha, my brother, which is like Pure water again?
I thought people were clapping hands and urging them that they were doing the right thing at the time?

davit:
I need some clarification here great investors. See the attached, is discount rate different from interest rate? The rate they advertised is interest rate. Going by the matured fund, have I been scammed?

freeman67:


The discount rate is truly about 16.82% while the yield abi na interest rate as them call am na about 20.01%.


If it is the 20.01 you saw and thought you invested with na where we fit talk say them scam( Even at that, its not a scam you for seek clarification before the investment) ask afresh or come here browse back small.

TB discount interest is paid upfront so if it was just that way it would have been the 16.82. However, with this, your interest is invested with the principal that's why it will yield that 20.01.


If the discount rate was upto this 20.01, your yield would have around 24%. That 16.82 discount rate is not the sweetest for that tenure considering the present realities but then na secondary market and it's already a done deal. So, make you manage am.

alezzy13:


Yep

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

alezzy13:


That's great.

GTB anyone? 🙏

Bennycollins:
Hi forumites.
Please someone should clarify me, I started getting involved in Tbills a couple of yrs ago, but have never done the primary market. I opted for the PMA on advice of my bank official,ZBN, and I completed the form against this week bidding round.
I just discovered the quoted principal has already been removed from my account. Does this mean the bid is already done and successful? Or it is the practice to first remove the bid sum?
Thanks for anticipated feedback.

Bluekapon:


What's the minimum amount for gtb?

Bluekapon:

Please, for primary market Tbill, what's the minimum amount one can bid via First Bank?

dacool1:
Has anyone used I-INVEST app? Do they pay interest upfront?

aieromon:


No. You get capital + interest - 10% WHT at maturity.

dacool1:
Please house what's the minimum ACCESS BANK does and is it possible to just send an email or one must physically visit the bank to invest in TB

lajid:
Chiefs pls I’m simple term, someone should explain discount rate and yield for me. What’s the difference

presiade:

https://wiki.treasurers.org/wiki/Discount_rate

lajid:


I get the concept it’s still not making sense tho how they got the calculation, reason I asked

lajid:


I get the concept it’s still not making sense tho how they got the calculation, reason I asked

ositadima1:


Now, pay attention to my mini masterclass in personal finance.

You invested 100,000 in Treasury Bills at a 16% discount rate. They pay 16,000 upfront (that is, at the start of the tenure, they return 16,000 to you). Effectively, they collected 84,000 from you, and at the end of the tenure, they pay you 100,000 (they call this the face value).

Now, pay attention very carefully, I am about to say something very important.

Yield is the extra money you get divided by initial investment. You invested 84,000 for the tenure and got an extra 16,000. The yield should be 19%, while the discount rate is 16%.

There will be a final exam on Monday.

ojesymsym:
lol... Based on this your explanation, failure rate go high.

ositadima1:


Why is that so? Did you catch any inaccuracies in my mini-lecture? It is simple enough. All over the world, when purchasing government treasury bills, you don't pay the face value; you pay the discounted value. Then, at maturity, you get the face value.

So, paying the face value and getting a discount on the bid day in Nigerian banks is actually what I explained. The other point is about yield. Whether it's a treasury bill or any other form of investment, the yield is the return divided by the investment.

Don't come here and badmouth my consultancy business if you don't have any reason to do so. You don't need to like me, okay?

stokfrick:
Good day fellow investors, I've been following the insightful comments on this thread and I must commend everyone.
But pls I need to know if these banks have investment houses where one can go to apply for t.bills or do I just walk straight to any bank Branch( for eg any zenith bank Branch if I am to use zenith), and apply for it?
Your comments and any additional info is highly appreciated.
Thanks

ositadima1:


Now, pay attention to my mini masterclass in personal finance.

You invested 100,000 in Treasury Bills at a 16% discount rate. They pay 16,000 upfront (that is, at the start of the tenure, they return 16,000 to you). Effectively, they collected 84,000 from you, and at the end of the tenure, they pay you 100,000 (they call this the face value).

Now, pay attention very carefully, I am about to say something very important.

Yield is the extra money you get divided by initial investment. You invested 84,000 for the tenure and got an extra 16,000. The yield should be 19%, while the discount rate is 16%.

There will be a final exam on Monday.