chauder:
This is one that FG debt servicing is more than revenue, Gurus please what's the faith of our monies in FG TBills and Bond. Is there a possibility of default? or delayed payback?

Tranquility2345:


See this one dey use style to market. You must think we are all fools here

jedisco:
The cycle of devaluation has become quite typical.

Last 2 weeks I got an email from my bank updating me on some new restrictions on PTA/BTA- this is usually the first sign and so I eased off the naira...

Unsurprisingly, after a week, the rates started pushing up... typical!

CBN threatening folks shows they're panicking. In the past, they'd have blamed crypt0 traders for their ineptitude. Also, some of the news filtering thru about the economy (debt servicing more than revenue) doesn't inspire confidence.

Thirdly, CBN rapidly increasing interest rates for the first time in years looks like they've sensed rapid inflation is beckoning.

I've always held that with rapid devaluation, around the 700-750 mark lies the point where the average Nigerian losses hope in the naira. This is usually where things begin to spiral out. If the gallop we saw this week continues into next, then that number is not far away.

What's worse is the inflation that follows any major devaluation. There's usually a 2-3 month lag for this. Inflation currently at 19% would easily reach 25-30% should the exchange rate reach 700. When handling a building project I usually like to be in usd preceeding this kind of devaluation and buy items in naira once things stabilise. If caught in naira, I buy up items quite quick cos prices would soar in the coming months..

Finally, over the last decade and half, the naira has averagely lost 10- 15% of its value against the usd every year (i.e 50% is lost every 6 years). This year (just like 2015) was going to be tough mainly due to the general elections and the money politics we play which is sadly now done in usd. All said, it's my duty to protect my wealth. Our leaders (and populace) do not care.

jedisco:


Bonds (moreso locally denominated) are not my forte

StrafordSTONES:




Hello Jedisco,

Please have you any idea if there is an option for locked staking on Binance...I want to lock away my busd for a long time without being able to break or have access to it until expiration of the lock period.

JaySterling:
Which investment would yield better for the sum of 50M

Treasury bills or fixed deposit ?

Please advise

emmasoft:


Treasury bill but MMF will even be better

chauder:
This is one that FG debt servicing is more than revenue, Gurus please what's the faith of our monies in FG TBills and Bond. Is there a possibility of default? or delayed payback?

rmx:


Well said , I have come to adapt very well to periods like this since I live in nigeria . The only thing I love better than holding dollars in times like this , is holding stocks of goods I deal in . Very interesting times , the pain won’t stop anytime soon , besides there is world wide inflation

StrafordSTONES:


Hello Jedisco,

Please have you any idea if there is an option for locked staking on Binanz...I want to lock away my busd for a long time without being able to break or have access to it until expiration of the lock period.

Olaide1295:


Binance gives 10% rate up to $4000.(Split 2k in BUSD and 2k in USDT flexible savings). Above that and the return rates are terrible.

jedisco:



Also, other forex denominated instruments are a good bet..e g foreign bonds.

jedisco:


There's option of lock staking.

Usdc and busd have the most trust in the market as they're properly backed by cash/cash equivalents and properly audited.

The recent drawdown in crypt0 has caused somewhat of a contagion that has affected some major players. Reason I say this is cos with locked staking, the security of your coins is dependent on the platform (Binanz here). It could be a single point of failure.

If investing good sums, it might be worth staking it across platforms.
Also, other forex denominated instruments are a good bet..e g foreign bonds.

Rizin:


Supported.
I bought dolar at @570 in April this year at 8% per annum. Currently it goes for 640 as at this morning. Representing 12% increase in just 4months.
God help our country.

Vote4ObiDatti:


"God help our country" indeed, when you're also part of the problem. Nigerians will use naira to buy dollar and hoard it. Some will demand for dollar officially and sell it in the black market. All these are rent seeking activities that sabotage the economy.

Why not look for ways to earn dollar legitimately instead? If you want to hedge against inflation, you can buy lands.

skydiver01:
The 2026 FGN bond is due 22 July... I am now looking forward to it dropping on Friday

skydiver01:
Was expecting this on Friday 22 July but it dropped today.

RayRay06677:


Na una make naija broke, una no want politicians see money steal, congratulations snr man

skydiver01:
Was expecting this on Friday 22 July but it dropped today.

ojesymsym:
Baba, you don retire?
You do not seem to be into equities, looks like you prefer fixed income.

Akerewe:
Good day all my Oga dem dem,

Pls I need a personal experienced advice on gtbank salary advance.

If I borrow 70k from gtbank salary advance for 5 days and liquidate it with repayment, how much will my total repayment be for 5 days?

It's said to b a minimum of 30days with 29% interest rate but I just need it for 5days, will my 29% interest be calculate for 5days or am still going to pay for 30days duration if I repay it in 5days??

Tobex4realTobex234:
Dollar limit on naira cards are now $20/month.
Virtual USD cards are being banned left and right.
PTA has been almost impossible to access from the banks.
Getting forex to pay for school fees has become increasingly difficult.

So, the dollar rate is not artificial, just wait for September admission Japa wave to U.K and January admission wave to U.S, if CBN doesn't provide forex for these needs, the scarcity of dollar would push it to 650 by 2023.

Vote4ObiDatti:


"God help our country" indeed, when you're also part of the problem. Nigerians will use naira to buy dollar and hoard it. Some will demand for dollar officially and sell it in the black market. All these are rent seeking activities that sabotage the economy.

Why not look for ways to earn dollar legitimately instead? If you want to hedge against inflation, you can buy lands.

ojesymsym:
How and where?

jedisco:


The kneejerk reaction by consumers who are speculating is not the reason we're here. Rather what they're doing is a consequence of past macro events.

When CBN was rapidly issuing short-term TBs at rates well over 10%, did we bother to ask how the government will generate revenue to pay back? We all knew the revenue of the government was in decline and the only way they'd pay back was to print more naira yet we kept quiet and enjoyed the largesse.

When DMO and MOF kept issuing eurobonds at rates of close to 10% and coming back to boast that their oversubscription means there is confidence in the market, what did we say? We said the professionals know better. Same forex that foreign governments borrow at negative rates.

Where was CBN when Emefiele was toying with the presidential race?
Where was CBN when dollars were bring distributed in the name of primaries?

Blaming the masses is similar to blaming the victims of the train attack for being kidnapped. Let everyone protect their wealth as they see fit so long they are not committing a crime.

JaySterling:
Please which MMF has the highest interest rate as at today

And what’s the rate per annum. I know it fluctuates, but what’s the highest as at today?

Thanks boss

Tobex4realTobex234:
1 USD = 670

Every month I send money home, I've had to exchange less and less dollar equivalent. Na to go find naira loan like this

Munamoqel:
BBN season 7 is here ! the voting centre racketeering start !. more money to very lazy youths work don dey