₦airaland Forum

Itsrm:
www.fmdqgroup.com/exchange/

Thank you!

Those doubting the NAFEM figures I quoted yesterday, you can check again now.

awesomeJ:
Those doubting the NAFEM figures I quoted yesterday, you can check again now.

https://www.bloomberg.com/news/articles/2024-05-28/naira-jumps-most-since-january-after-central-bank-sold-dollars-ngn-nigeria

It'll be another transient gain.
$1.3B futures contract is due tomorrow. The CBN flooded the market to precipitate a sharp drop so as to reduce their bill.

If you can source the $ at 1200 or less, load up.

-Lord

awesomeJ:
Those doubting the NAFEM figures I quoted yesterday, you can check again now.

Confirmed now. Going back on unifying rates? This drop is obviously abnormal.

Black market is still around 1450.

LordAdam16:
https://www.bloomberg.com/news/articles/2024-05-28/naira-jumps-most-since-january-after-central-bank-sold-dollars-ngn-nigeria

It'll be another transient gain.
$1.3B futures contract is due tomorrow. The CBN flooded the market to precipitate a sharp drop so as to reduce their bill.

If you can source the $ at 1200 or less, load up.

-Lord

Do you have access to the content?

LordAdam16:
https://www.bloomberg.com/news/articles/2024-05-28/naira-jumps-most-since-january-after-central-bank-sold-dollars-ngn-nigeria

It'll be another transient gain.
$1.3B futures contract is due tomorrow. The CBN flooded the market to precipitate a sharp drop so as to reduce their bill.

If you can source the $ at 1200 or less, load up.

-Lord

Could you please use figures to do an analogy of this statement: "The CBN flooded the market to precipitate a sharp drop so as to reduce their bill."

Isn't the whole essence of futures that their settlement is independent of prevailing prices?

If prices fell on their own, and CBN got to buy at lower prices to settle the futures, then it's easy to follow your point, but what you're saying is that they're the ones selling dollars cos of maturing futures, kindly expantiate.

Itsrm:
Confirmed now. Going back on unifying rates? This drop is obviously abnormal.

Black market is still around 1450.

The disparity doesn't necessarily mean a reverse of stance on unification, one segment will always lag the other when there are to be significant price movements.
In early April when the parallel market tested sub 1000, the official market remained above 1150, but when the official rates stayed at those elevated levels, the street market naturally alligned.

If these price levels are sustained for the rest of the week, the street market should start adjusting as well especially if a supply to BDCs is announced. Street market may go sub 1300 before weekend, and by next week, we should again have less than 5% disparity.

Itsrm:
Do you have access to the content?

Yes.

The naira traded near its strongest level in over a month as Nigeria’s central bank stepped into the foreign exchange market to sell dollars.

The naira rose 9.7% on Monday to trade at 1,339.33 per dollar, closing at the firmest since April 26 and posting its biggest one-day move since mid-January. It slipped Tuesday above 1,400 per dollar in intra-day trade on the currency platform operated by Lagos-based FMDQ Exchange, according to two traders in Lagos.

Authorities intervened on Monday and were again in the market on Tuesday, according to two people with knowledge of the matter. The central bank did not immediately respond to a request for comment.

“The central bank dollar sales and OMO auction” helped to strengthen the naira, said Olaolu Boboye, an analyst at asset manager CardinalStone in Lagos, referring to the central bank’s open market operations.

Dollar liquidity had surged on Friday as the central bank’s sale of one-year paper attracted flows. The sale of 1.143 trillion naira ($800 million) worth of bills at a 22.49% yield, more than doubled liquidity in the foreign exchange market to $556 million. However, that liquidity surge was not sustained into Monday, when the volume of dollars sold in the market declined to $181 million despite the central bank intervention.

The central bank is currently selling hard currency in the range of 1,260 to 1,320 per dollar, well off the current exchange rate below 1,400, according to Samir Gadio, head of Africa strategy at Standard Chartered Bank. The sales are taking place ahead of Wednesday’s maturity of a $1.3 billion naira futures contract, he noted.

“The rationale may be to contain and pre-empt a potential increase in dollar demand in the coming days,” Gadio said. It is also “conceivable” that there could be another bill sale to offset the impact of the expiring contract, he said.

The naira has been volatile since mid-April, reversing most of the gains made in March on the back of improved dollar inflows. It is among the worst performing currencies monitored by Bloomberg in the last month, having been the top performer in March.

The central bank raised its key interest rate to record high of 26.25% last week in a bid to attract dollar inflows and curb inflation, which accelerated in April to a 28-year high of 33.7%.

“The Nigerian naira’s dizzying swings — sharpest among liquid currencies globally since the start of the year — are driven by capital flows and may persist at least until inflation peaks, likely in the coming months,” Bloomberg Intelligence analyst Sergei Voloboev said in a note last week.

awesomeJ:
The disparity doesn't necessarily mean a reverse of stance on unification, one segment will always lag the other when there are to be significant price movements.
In early April when the parallel market tested sub 1000, the official market remained above 1150, but when the official rates stayed at those elevated levels, the street market naturally alligned.

If these price levels are sustained for the rest of the week, the street market should start adjusting as well especially if a supply to BDCs is announced. Street market may go sub 1300 before weekend, and by next week, we should again have less than 5% disparity.

There was no time in April when parallel market tested sub 1000. What happened was that Abokis were lifting dollars from foolish people and selling at a spread of more than 200. Did you try to buy that period? I tried and it was almost impossible to get below 1100.

Secondly, if the bolded will happen, we will have seen the signs already. What I'm seeing on the contrary at least up till this moment is some level of strength in the parallel market.

LordAdam16:
Yes.

Thank you.

Itsrm:
There was no time in April when parallel market tested sub 1000. What happened was that Abokis were lifting dollars from foolish people and selling at a spread of more than 200. Did you try to buy that period? I tried and it was almost impossible to get below 1100.

Secondly, if the bolded will happen, we will have seen the signs already. What I'm seeing on the contrary at least up till this moment is some level of strength in the parallel market.

I certainly heard reports of 980 from the ABCON chairman, and unless you identify yourself as someone who has more insight of the business than him, your claim is obviously falacious.

check naira rates. if 1509 on monday to 1448 yesterday to 1423 today is what you call dollar strengthenin, then you're on your own.

I sold usd at 1498 over the weekend, I could only sell off the rest at 1486 0n monday, today i've bought at 1413.

I'm not forcing any opinion on you, but don't be quick to dispel facts just based on incomplete info you have, some of us are way past saying what we aren't certain about.

awesomeJ:
I certainly heard reports of 980 from the ABCON chairman, and unless you identify yourself as someone who has more insight of the business than him, your claim is obviously falacious.

check naira rates. if 1509 on monday to 1448 yesterday to 1423 today is what you call dollar strengthenin, then you're on your own.

I sold usd at 1498 over the weekend, I could only sell off the rest at 1486 0n monday, today i've bought at 1413.

I'm not forcing any opinion on you, but don't be quick to dispel facts just based on incomplete info you have, some of us are way past saying what we aren't certain about.

You're hearing reports and I'm telling you my experience as someone who desperately tried to buy below 1000.

Why didn't you buy from the ABCON chairman at 980 or show us the one you bought from him at that price.

I called several abokis and tried so hard to buy that period and never got a quote below 1100. The moment you want to sell they start telling you stories of how dollar is going down and they can only buy below 1000.

If the official market closed at 1173 and you're confirming that parallel market is still above 1400 at this time, you're actually agreeing with me. You just can't see it yet.

Itsrm:
You're hearing reports and I'm telling you my experience as someone who desperately tried to buy below 1000.

Why didn't you buy from the ABCON chairman at 980 or show us the one you bought from him at that price.

I called several abokis and tried so hard to buy that period and never got a quote below 1100. The moment you want to sell they start telling you stories of how dollar is going down and they can only buy below 1000.

If the official market closed at 1173 and you're confirming that parallel market is still above 1400 at this time, you're actually agreeing with me. You just can't see it yet.

So the fact that you couldn't buy below 1100 is proof that dollar never traded below 1000, even when the person who has authority on the matter confirmed such trades on national TV.

I pity someone who hires someone with your thinking pattern for a lawyer with your "I couldn't buy below 1100, therefore no one ever bought below 1000" argument.

I don't have to disclose my trades to you but I'll indulge you. The last dollar cash I sold in April, I sold at 1080, the aboki was ready to sell at 1100 at the time. One week after then dollar crashed by another #100, going by your funny argument, if i had waited that extra week the aboki wouldn't have paid less than 1100 for my USD.

You're on your own.

If you want facts and not just baseless arguments, check channels TV or nairametrics for headlines of naira trading at 980 and rest.

I'm sure if I had engaged you in a conversation about NAFEM's closing rate yeterday, you would have flaunted thesame pattern of arguing
with incomplete information.

awesomeJ:
So the fact that you couldn't buy below 1100 is proof that dollar never traded below 1000, even when the person who has authority on the matter confirmed such trades on national TV.

I pity someone who hires someone with your thinking pattern for a lawyer with your "I couldn't buy below 1100, therefore no one ever bought below 1000" argument.

I don't have to disclose my trades to you but I'll indulge you. The last dollar cash I sold in April, I sold at 1080, the aboki was ready to sell at 1100 at the time. One week after then dollar crashed by another #100, going by your funny argument, if i had waited that extra week the aboki wouldn't have paid less than 1100 for my USD.

You're on your own.

If you want facts and not just baseless arguments, check channels TV or nairametrics for headlines of naira trading at 980 and rest.

The ABCON chairman could have been quoting the price they were buying from foolish people. I never disputed the fact that they did.

What I am telling you is, they did not sell below 1000 and I stand by it.

What you should do is bring at least one person who was able to buy from Aboki below 1000 or show us the one you bought from ABCON chairman. Until you're able to do that, I'm done with this useless argument.

awesomeJ:
I'm sure if I had engaged you in a conversation about NAFEM's closing rate yeterday, you would have flaunted thesame pattern of arguing
with incomplete information.

Now this guy is a clown. I posted a link to fmdq where 1339 was quoted as closing price and asked where you got yours.

Why didn't you respond at the time since you have access to information others don't have

So this was what happened

Fmdq originally posted 1173 as closing price. Some news outlet like proshare caught it and posted it. The clown saw it and shared on nairaland.

Fmdq changed the 1173 to 1337 which they later changed back to 1173.

Now he's implying he has access to some inside information. Clown

24 hours later.

If you like, go and dump your fx holdings because people who sold theirs already and are hoping to buy from you at a lower price are telling you it will go below 1300 by weekend. I will be here to remind you how foolish you are like I keep reminding the mugus who sold to Aboki below 1000.

Please I'm kinda confused

I purchased TB of 300k for 182 days at access bank today at the rate of %14. My thoughts was I would be debited around 258k but they just debited me 279,800.

I thought since it's at %14, I should be getting 42k

uptimum123:
Please I'm kinda confused

I purchased TB of 300k for 182 days at access bank today at the rate of %14. My thoughts was I would be debited around 258k but they just debited me 279,800.

I thought since it's at %14, I should be getting 42k

14% p.a. 182 days = half a year. I hope that solves your misery.

uptimum123:
Please I'm kinda confused

I purchased TB of 300k for 182 days at access bank today at the rate of %14. My thoughts was I would be debited around 258k but they just debited me 279,800.

I thought since it's at %14, I should be getting 42k

There's always 10% WHT on the interest.

Odunharry:
There's always 10% WHT on the interest.

Only on FD, dividends e.t.c.

These are the usual fees on Tbills. Commision 0.125%, custody 0.10%, transaction fee N100, VAT 5% on commission, custody and transaction fees.

Itsrm:
Only on FD, dividends e.t.c.

These are the usual fees on Tbills. Commision 0.125%, custody 0.10%, transaction fee N100, VAT 5% on commission, custody and transaction fees.

Are these fees on the interest or principal?

Thanks a lot

EduC:
Are these fees on the interest or principal?

Thanks a lot

On the interest

ahiboilandgas:
The Nobel prize for medicine has been Award to katalin kariko and Drew weissman for the first MRNA vaccines to fight covid 19 made by Pfizer ! I was expecting to see Chenedu or Emeka as the south East indigene has succeeded in the SDG goals . This is what education should be about. This the type of success other races should envy Not your mediocrate imagination that you are in competition with the North or been envied for selling meth up and down.

Is this one still alive or dead? Aboki, this your ban long o

presiade:
14% p.a. 182 days = half a year. I hope that solves your misery.

So, this means what I'm actually getting is %7 for 182 days. If so, is it a fair rate?

uptimum123:
So, this means what I'm actually getting is %7 for 182 days. If so, is it a fair rate?

Pro-rata, a financial accounting term you should get used to.

uptimum123:
So, this means what I'm actually getting is %7 for 182 days. If so, is it a fair rate?

Kind of an approximation. That's on par with recent primary market rates.

presiade:
Kind of an approximation. That's on par with recent primary market rates.

Thank you

Zagee:
Pro-rata, a financial accounting term you should get used to.

Please who knows the next primary auction date?

Itsrm:
Only on FD, dividends e.t.c.

These are the usual fees on Tbills. Commision 0.125%, custody 0.10%, transaction fee N100, VAT 5% on commission, custody and transaction fees.

I think Banks charges those fees on the transaction.

Investment one only charge the 10% WHT on interest.