₦airaland Forum

creategist:
You posted the above on May 5 Pa Emma. You were so spot on!

According to NCDC as of this morning [/b]5162 cases of #COVID19 in Nigeria[b]
Discharged: 1180
Deaths: 167

emmanuelewumi never loses with the predictions. His predictions of the tbills rate crash left me amazed.. it’s still why I follow this thread..

Ugmama:
Ten thousand is not N10, 000 naira o... 10000 people!!!!

In a country of 200m people and above, it’s more or less like 10000 naira.. lol.

Difficult to believe only 10000 Nigerians are worth $1m especially when you consider the overpriced cost of real estate in Nigeria..

emmanuelewumi:
Because you are an independent woman, who knows the value of money, savings and Investment. Your husband is also a confident man.

I can say a lot of Nigerian men are not confident. Very few men can handle a financially independent woman

Is it about confidence or about the attitude of rich women to their partners, especially when they are wealthier.

Grupo:
Hmm. Are you sure this is the best time to invest in TB?

I invested in February for 182. And by the time the investment matures in August, the capital would have lost enough value.

How much did I gain from such a pointless endeavor? A paltry 57k on an investment of "three point something million."

I remember many people on this thread advised MMF instead of tbills. You would have earned more than 57k with 3.something million by now!

TotoNaRubber:
The reason why buying dollar at this time is a rip off


The current buy rate for dollar stands at N460/$ while the buy rate for euro is N450/€ (This is economically impossible, euro is stronger than dollar anywhere in the world and has always been, and will always be EXCEPT in the manipulated Nigerian black market),

And will always be? Lol. The world economy is changing. Brexit plus oil prices. Dollar is getting stronger everyday while other currencies are losing value including pounds

Grupo:
Ha. Nawao. And I just sent a few dollars to my dorm account this morning.

Where's now the safest place for someone to keep their money?

Nigerian policies always favor the rich. It will never come to a point where dorm account holdings are converted by fiat to naira. Worst case scenario is scarcity of dollars where it’s hard to withdraw dollars like it happened in 2016

chigo4u:
412 right now. I think dollar will hit 500 this year before dropping but won’t drop less than 400. If you have anything you need the money for currently you can change but if not just continue monitoring the rates every day

Oh well.. 500 today..

NIGHTLIFE100:
Dear all, please does anyone know the current dollar to naira rate for black market? I’m seeing 410 but I wanna be sure and also is it advisable to change my usd-naira now considering the high exchange rate? Pls note I don’t have any use for the money now I just wanna take advantage of the night rate. Thanks

412 right now. I think dollar will hit 500 this year before dropping but won’t drop less than 400. If you have anything you need the money for currently you can change but if not just continue monitoring the rates every day

XiaoLi:
FBN Quest

I think stanbic dollar fund is better

XiaoLi:
Glad it is safe, i got 4%, they initially offered 3.5% but i insisted they make it 4% since another bank offered 4% on a usd denominated investment (not really) which they later agreed, the investment was done first week of March though.

What bank offered you 4% on usd investment? Does anyone know if GTB has any usd investment? Don’t want to move my usd to another bank

emmanuelewumi:
I hope you have enough cash that can take care of your expenses for the next 6 months and above, if you have done that you can invest in whatever catches your fancy


This recession is real, the most important thing is survival

Boss, do you know if this will have any impact on tbills rates or are we going to have single digit rates throughout the year

missjekyll:
So, I just advised mommie dearest to hold on on some land she wanted to pay cash for. We ll need that cash for later in the year to snap up distress sales.

Has anyone got any advice on where to spot such opportunities. I have got some personal contacts but I want to spread a bigger net for information.

cc:emmanuelewumi,ahibooilandgas

I know this sounds terrible but this recession fills me with excitement. Fortunes are made during recessions you know

A lot of distress sales will happen after this lockdown.. A lot of businesses are already collapsing and would need funds to get back on. Unfortunately many companies will lay off workers.. If this lockdown lasts till end of this month, I’m afraid what would happen.. Interesting times..

ahiboilandgas:
it already a horrible 1 quarter for all fixed income investors including me ....all my income projections are currently in disarrays but we went though this cycle in 2015 ....i added several side biz to balance up the short falls but it not been easy ......expanded my cement biz , also added a tipper and i represents an industrial equipment provider just to meet up....but it doesn't make any sense to keep 1m at 4.5 per anum ....that insanity financially

Is cement business lucrative? Can you give a quick run down of running it. You only talk about the oil biz

CsRockefeller:
Its a selfish move and an economic sabotage if Dangote should go ahead with that move.

Fact is Nigeria made him, unlike others, he figuratively should die for Nigeria. He owes us!!

LOL..

dandollar1:
At this rate of 400+ to a dollar, is it still advisable for one to convert and hold in dollars? Will it still increase?

Try and look for where to get at 370-385, you cannot lose when you get at these rates

ahiboilandgas:
their is currently 20 bn dollars held by Nigerians .....the federal govt had a proposal to convert same by fait to naira and use the dollar to fund imports to critical items

The big men who run Nigeria will never allow this though, including the politicians.. only thing they can do is imposing serious charges and restrictions

ahiboilandgas:
pls buy if u have a secured place to key....i currently have zero naira , i stop banking ....everthing is either dollars,pounds and asset that i can increase their cost too....

What do you mean by a secured place to key? I hope govt does have any plans of tampering with peoples dom accounts by way of charges in the future, since you’ve destroyed tbills and also rendering naira useless a lot of people will be opting for dollars

speak2lift:
The United Capital which me I have been using for a while now had always accepted Cash deposit up until early January.

I still paid in USD as at December 2019 ending and I had been doing that since I started using them in 2017.

It was in January that the Account Manager told me that Cash Deposits were no longer being honoured.


As regards what CBN said or did not say - what I have sha shared is the reality which we are all currently facing now. Can you make an attempt to transfer funds from your dorm account into the Eurobond investment accounts of either United Capital or Stanbic and let me know if it goes through?

CBN cannot claim to be unaware of what banks have implemented.

I will be waiting for the result of your test. Perhaps we can learn from you

You are right. Cbn banned transfer of cash deposits.
Since you’ve been doing Eurobonds since 2017, what are the returns like? Is the capital investment safe? Risk free?

pluto09:
The surge in inflation is mainly attributable to recent border closure.
The biggest problem facing CBN now is shortage of dollar and dwindled reserves..
Raising interest rate on tbills will not solve those problems.

It is ironic that some people are more concerned about what they get from tbills than the over all heath of our economy.

So should everyone start panic buying dollars instead? It’s the duty of the government to fix the economy not the masses. The government doesn’t feed anyone atleast in Nigeria

CsRockefeller:
We run an import driven consumption economy.

Almost everything we consume (consumer and industrial) are imported.

When you devalue your currency you have simply increased the prices of these goods simultaneously.

Unlike the PMS, it is falling in the international market hence a price adjustment downward but that can't be said for other goods.

There's no excess cash in the system, what Govt has simply done is to take N20 from every N380 you have, that leaves you with less not more.

What do you mean there is no excess cash in the system, every devaluation leads to inflation, also the new minimum wage will also cause excess cash in the system, the CBN OMO bills was closed to local investors making them to divert to tbills causing the over subscriptions being recorded in tbills.
Now that OMO bills is receiving low subscriptions what will CBN do next? CBN said it devalued the naira to increase naira revenue and finance local spendings.. Budget is already running at deficit so they should get ready to print more naira..
You should know all these policies are making the naira lose more value.. Liquidity is very high and the dollar revenue is decreasing with the oil price fall.. Inflation is nearing 13% for Gods sake.. Looks like the current CBN don’t even care about the inflation numbers.

CsRockefeller:
Who told you excess liquidity is the only determinant of inflation?

Where is the too much money chasing few goods at?

So what is the determinant of the current inflation levels?

CsRockefeller:
There's nothing like excess liquidity right now, the devaluation is to protect the existing reserves as Govt still struggles to find buyers for its oil.

The idea is to make naira available for priority payments like salaries since revenue/sales is dwindling. Erstwhile, Govt could afford to print naira notes through its reserves but that would be a risky move now that there's a fall in demand.

TB when issued will still be subscribed with its low rates, how can Govt increase it when their debt profile is soaring vis a vis a drop in revenue, it's suicide mission na.

Like I said, the Economic team is racking their brains right now. The current suituation is like carrying out a surgical procedure on the brain, while trying to solve a problem, you must ensure that you don't create another one.

Just that in Economics it's impossible, so Govt goes with the option that has the least problems.

If there's any chance of excess liquidity occuring by redeeming it's coupon, that would be allayed by reissuing new coupons which would certainly be oversubscribed despite the low rates, because, that's your safest investment in an economy where the real sector is close to non-exsistence.

You say their is nothing like excess liquidity but inflation is currently over 12% and will even increase further with this devaluation... lol..

CsRockefeller:
You kidding right? Government, even as irresponsible as this Govt is won't increase that rate, not now when oil prices are falling.

What do you then say they should do to the minimum wage? Because the devaluation is going to affect the average Nigerian disposable income.

I don't want to be the CBN Governor or Minister of Finance right now, too many problems to solve right now. TB are their least of priorities right now.

There is too much liquidity in the system caused by both devaluation and inflation.. A responsibile govt should increase rates to mop up cash from the system and help strengthen the naira too. That’s basic economics. Govt said they devalued the naira in order to increase naira oil revenue and finance budget so all these together with low rates will help render naira useless.. I guess you didn’t read the Bloomberg article that pegged the real exchange rate of naira to dollar at atleast N600!

Now cbn has ‘marginally’ devalued the naira, isn’t it time to review rates of tbills to reflect inflation rate?
Emefiele don tire person

What is the current interest rate for the stanbic dollar fund with this new memo

Naira is now devaluing itself finally.. we are in trouble

dipoolowoo:
CBN Drops Treasury Bills Rates to 2.49%
https://businesspost.ng/economy/cbn-drops-treasury-bills-rates-to-2-49/

Will these over subscription ever stop? Why do people insist on these low rates. I moved my money to MMF and I think I’m better off

Atedo Peterside of Stanbic IBTC to Emefiele

“At an appropriate time, I will send you my thoughts on how to quickly eliminate the policy inconsistencies that threaten the stability of our macroeconomy as CBN continues to seek to defy the odds by simultaneously pursuing a low domestic interest rate regime which clearly cannot coexist with high inflation and naira exchange rate stability in the face of collapsed/collapsing oil prices and an insatiable and uncontrolled appetite for foreign currency loans. This unsustainable policy mix has spooked investors (local and foreign), thereby making it increasingly likely that the Nigerian economy slides back into a recession, unless you quickly embark on some course corrections.”

Pascopele:
Oga, the devaluation go still wipe the dollar p, just hold eurosCBN IS URGED TO ALLOW NAIRA WEAKEN TO DEAL WILL SHOCK

How do you mean devaluation will wipe dollar?

Alwaysachick:
So what is tomorrow's meeting about?

To dismiss the suit like in Bayelsa

Badguy89:
The Supreme Court judgement also stated that the review was dismissed cos the application lacked merit. But imo's own is different,it's about the constitution. Besides I heard d Supreme Court has set aside it's own judgment in d past (1999). Anyway, by dis time tomorrow we go know hwfr.

The Supreme Court has never set aside its judgement except after a constitution review. Yes the bayelsa was dismissed because it lacked merit just as the Imo case tomorrow, if ihedioha judges were confident of their case, why are the tweaking it every other day, I’m predicting they would withdraw the case before the judgment tomorrow.

Badguy89:
I am not a lawyer but please read this.

https://www.google.com/amp/s/www.thisdaylive.com/index.php/2020/02/29/imo-bayelsa-a-case-of-different-facts-disparate-circumstances/amp/

Secondly Ihedioha doesn't need new witnesses. Rather he is only showing the Supreme Court the judicial and constitutional blunders it committed. I haven't seen the judgement but how will an election hv more voters than the total registered voters.

The Supreme Court cannot review or debate its judgement it was clearly stated in the bayelsa case. The judge said “even if we review this case, if will open more reviews” meaning the case was not reviewed, it was just dismissed as will be ihediohas case. That that are entertaining the case is just to fulfill righteousness