₦airaland Forum

OlawaleBammie:
I don't know much about economics. Please how is this significant to our wellbeing as a nation?

Nothing good will come out of it. Raise capital by sales of bond isn't beneficial to the economy because we don't have any economic activity that's generating revenue. Rather we been taxed more and more despite Nigerians been very poor. The bonds tenure runs on periodical basis from months to years and once the maturity reaches, the FG have to pay them back. Now the question is where's the FG going to source the profits to pay back investors along with their capital?

There's nothing that points historically where capital market benefits the economy especially in continent Africa. It's just a way for big financial houses from investment banks, wealth management and insurance houses to make money for their investment.

sslcrypt:
Nothing good will come out of it. Raise capital by sales of bond isn't beneficial to the economy because we don't have any economic activity that's generating revenue. Rather we been taxed more and more despite Nigerians been very poor. The bonds tenure runs on periodical basis from months to years and once the maturity reaches, the FG have to pay them back. Now the question is where's the FG going to source the profits to pay back investors along with their capital?

I tot we re talking about fx reserves here, which are like external whatever whatever.... does it have any relationship with fg bonds??

OlawaleBammie:
I tot we re talking about fx reserves here, which are like external whatever whatever.... does it have any relationship with fg bonds??

The foreign investors are buying the bonds in dollars. Thus the reason why the FG trying to paint it as foreign reserve increase. Obviously the payment back to investors will be in dollars, the topic is misleading.

sslcrypt:
The foreign investors are buying the bonds in dollars. Thus the reason why the FG trying to paint it as foreign reserve increase. Obviously the payment back to investors will be in dollars, the topic is misleading.

Okaaaayyyy

But at least the fg would have gotten their own share for the dollar(profit) before paying back na

OlawaleBammie:
I tot we re talking about fx reserves here, which are like external whatever whatever.... does it have any relationship with fg bonds??

As shown

sslcrypt:
✓ The foreign investors are buying the bonds in dollars. Thus the reason why the FG trying to paint it as foreign reserve increase. Obviously the payment back to investors will be in dollars, the topic is misleading.

Foreign investors bought Nigerian bonds worth $622.2 million in just 10 days?

OlawaleBammie:
Okaaaayyyy

But at least the fg would have gotten their own share for the dollar(profit) before paying back na

No it doesn't work like that, any margin goes to the broker(who are primarily investment banks like them Goldman Sachs, financial derivatives etc) because they are the market makers. If any profit it will go to the FMDQ and other government approved market operator.

sslcrypt:
No it doesn't work like that, any margin goes to the broker(who are primarily investment banks like them Goldman Sachs, financial derivatives etc) because they are the market makers. If any profit it will go to the FMDQ and other government approved market operator.

Bros.... all this initials and terms wey u dey blow pass my level.

E be like say u dey work for financial institution.

Max24:
People who just built the first bus stop in 33years will not like this news !

Ebilokan Stockholm syndrome patients celebrating meaningless news that has no impact whatsoever on their ebiNpawa existence of high cost of food, drugs, fuel, transportation etc in an environment of high unemployment.

Kobojunkieee:
Foreign investors bought Nigerian bonds worth $622.2 million in just 10 days?

It might not necessarily be the case, most might be renegotiated terms on failures to pay previous tenures from past administration. Since bonds tenure runs longer and also we don't know the full scale of the terms and conditions associated with the buyout. A lot of foreign investors use multiple prong approach of utilizing bonds purchase. While purchasing bonds they are tying a payback to some form of repayment on backs of physical assets via subsidiaries in form of cooperations.
Anyway FG bond can't be defaulted on

sslcrypt:
The foreign investors are buying the bonds in dollars. Thus the reason why the FG trying to paint it as foreign reserve increase. Obviously the payment back to investors will be in dollars, the topic is misleading.

Very misleading to tantalise the badly educated APC supporters.

Many thanks for your insight on this dollar bond issue.

oluayebenz:
That's a good news right there....

Thou it's expected, no more fuel importation..

Dollar will likely be exchange around 1,000 in the coming weeks

You are part of the problem in this country.

you simply do not understand the implication of what has happened here

Read below from an enlightened fellow:

sslcrypt:
Nothing good will come out of it. Raise capital by sales of bond isn't beneficial to the economy because we don't have any economic activity that's generating revenue. Rather we been taxed more and more despite Nigerians been very poor. The bonds tenure runs on periodical basis from months to years and once the maturity reaches, the FG have to pay them back. Now the question is where's the FG going to source the profits to pay back investors along with their capital?

anonimi:
Ebilokan Stockholm syndrome patients celebrating meaningless news that has no impact whatsoever on their ebiNpawa existence of high cost of food, drugs, fuel, transportation etc in an environment of high unemployment.

What's all these? Did I mention anybody's name? Why are you attacking me? Just because of an innocent comment.

JoeyNaza:
you mean after collecting loan ( bond sale ) ?

You know what’s up bro.
Well done for the enlightenment.
APC propaganda lies bursted again.

Max24:
What's all these? Did I mention anybody's name? Why are you attacking me? Just because of an innocent comment.

Did I also mention anybody’s name?
If you have contrary evidence of the impact, please share.

Max24:
People who just built the first bus stop in 33years will not like this news !

You mean these people.
They will also claim they are not suffering,yet they couldn't afford to buy petrol

He is unconscious o

helinues:
Are you bitter about this news? If no what's the foaming in the mouth for?

Blazetrailer:
To start with, you should have used "written" instead of "wrote" in your first sentence, which gives credence to my initial assertion that you are not educated well enough

Secondly, I thought i was simple and basic enough to explain to you why this is not a positive news. I went so low in the explanation,hoping you will understand the primary school level example, given the brazen ignorance you have displayed on numerous topics here.

If you still did not get it after reading all i wrote , then, apologies for assuming you could even comprehend the basics.

Please go your way. I am done engaging someone so daft. My bad!!

Sometimes, I wonder why most of you focus on the grammatical errors of others; it doesn’t make you sound educated, rather make you look like clowns.

How many native English speaker can type the way the guy typed? . Even the whites will score him 9 over 10 for his effort. English Language is not his first language and English language is not a measure of intelligence. It is just a language like Hausa, Ibo or Yoruba. In as much as you could understand the message being passed, that should suffice. So, do not feel like one “Albert Einstein”. Most English-speaking whites cannot even write out their names in English Language , and they also speak terrible English Language. Yet, your kind will still worship them.

Look at the bolded in your own piece, it’s meant to be “typed” and not “wrote”. You were busy finding faults in others while you have log in your own eyes.

Nonsense.


C: Helinuses, everyone

hafeeanubasy:
You mean these people.
They will also claim they are not suffering,yet they couldn't afford to buy petrol

God bless you, Sir.

Max24:
People who just built the first bus stop in 33years will not like this news !

So u are happy or salivating over this new. But by next week it will drop again. Their hasn't been any sustained growth under this govt.
It's been 1-step fwd and 2-step backwards policy

Kobojunkieee:
The Federal reserves was at $34.5 billion or thereabout in April of 2024. The government announced several times since then that it had risen by about $500-$600 million since then. So, how come 5 months later, it remains at $36.8 Billion? Clearly, the government has dipped into the reserves since after it took almost $1.2 Billion out to shore up the Naira.

Nigerians, make una shine una eyes oo! This government is of lies and propaganda!

Hope you are aware that how the country foreign reserves is being managed is different from how a personal account is being managed.

Another one today, another one tomorrow, my brother which kind life be this yeeee.... Useless morafvckas.

Max24:
God bless you, Sir.

I wish you guys will just focus on the issues. We have been educated that this increase in our FR might not have any positive impact on our economy. It's purely a loan. We don't celebrate loans, but what the loans are deployed to achieve. We await to see that in the coming days. Until then, I think we should tone down the celebration.

DeLaRue:
The government is on track.

The stars are beginning to align for Nigeria.

One step at a time.

There is nothing to celebrate here. The FGN is just amassing debts which must be repaid with interest in future.
They are borrowing and misusing the funds on useless things like palliatives.
When it is time to repay the loans, they would print money which would cause higher inflation, interest rate hike,and people would suffer more.

sslcrypt:
Nothing good will come out of it. Raise capital by sales of bond isn't beneficial to the economy because we don't have any economic activity that's generating revenue. Rather we been taxed more and more despite Nigerians been very poor. The bonds tenure runs on periodical basis from months to years and once the maturity reaches, the FG have to pay them back. Now the question is where's the FG going to source the profits to pay back investors along with their capital?

Exactly.
They will end up printing currency to repay the loan, and causing higher inflation, interest rate hike, higher cost of living, more poverty etc

JoeyNaza:
you mean after collecting loan ( bond sale ) ?

I wonder o

Reserve for the elites

Kobojunkieee:
The Federal reserves was at $34.5 billion or thereabout in April of 2024. The government announced several times since then that it had risen by about $500-$600 million since then. So, how come 5 months later, it remains at $36.8 Billion? Clearly, the government has dipped into the reserves since after it took almost $1.2 Billion out to shore up the Naira.

Nigerians, make una shine una eyes oo! This government is of lies and propaganda!

It was used to offset many loans. It was in the news

Those things were done not was done.

helinues:
The debt servicing, the increase in states Oyel money, social interventions programs like NELFUND, Distribution of relief materials to states depleted the FX.

Or those things was done without spending a dime?

mikeapollo:
Exactly.
They will end up printing currency to repay the loan, and causing higher inflation, interest rate hike, higher cost of living, more poverty etc

Bullseye, causing the country to fall into further depression.

What is the connection between capital markets and operational changes in FOREX reserves?
Forex reserves rise because the people are buying less dollars than they are selling

It is not a savings account of the government and simply indicates a balance of central banks ability to meet FOREX demands
It's main relevance should be in influencing the power of the CBN to set exchange rate