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Treasury Bills In Nigeria - Investment (497) - Nairaland

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Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)

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Re: Treasury Bills In Nigeria by fadamos: 10:24pm On Apr 12, 2018
Izuogu1:
My fbn secondary market bills will expire tomorrow. Will I receive an alert same day?
No alert..
It will be drop in your account 2mr
Re: Treasury Bills In Nigeria by Nobody: 10:24pm On Apr 12, 2018
fadamos:

No alert..
It will be drop in your account 2mr
ya..saw it. Thanks
Re: Treasury Bills In Nigeria by fadamos: 10:38pm On Apr 12, 2018
Izuogu1:
ya..saw it. Thanks

Uwelcm
Re: Treasury Bills In Nigeria by katamo: 10:47pm On Apr 12, 2018
Headline inflation drops for 14th consecutive month... this will continue to put pressure on T-Bill rates; coupled with the fact that CBN is only rolling over a portion of maturing issuances.

The Consumer Price Index (CPI) which measures inflation increased by 13.34 percent (year-on-year) in March 2018. This fourteenth consecutive disinflation since January 2017 is 0.99 percent points less than the rate recorded in February 2018 (14.33) percent.
Increases were recorded in all COICOP divisions that yield the Headline Index.
On a month-on-month basis, the Headline index increased by 0.84 percent in March 2018, up by 0.05 percent points from the rate recorded in February.
The percentage change in the average composite CPI for the twelve month period ending March 2018 over the average of the CPI for the previous twelve month period was 15.60 percent, showing 0.33 percent point lower from 15.93 percent recorded in February 2018.
The Urban inflation rate eased by 13.75 percent (year-on-year) in March 2018 from 14.76 percent recorded in February, while the Rural inflation rate also eased by 12.99 percent in March 2018 from 13.96 percent in February.

Data source: National Bureau of Statistics

1 Like

Re: Treasury Bills In Nigeria by diamond88: 6:26am On Apr 13, 2018
TB follows inflation rste
Re: Treasury Bills In Nigeria by dipoolowoo: 6:36am On Apr 13, 2018
Re: Treasury Bills In Nigeria by TONY56: 7:26am On Apr 14, 2018

3 Likes

Re: Treasury Bills In Nigeria by RealityShot: 9:02am On Apr 14, 2018
TONY56:
https://guardian.ng/business-services/bitcoin-company-shocks-customers-disappears-with-millions/ grin grin grin grin
10% per year is too small Naa!
But they loss 100% in 7days!

Greedy Nigerians. grin

I put 50k in the stock market in January.. Now it's 45k
I also put 50k in money market fund same January.. Now it's 53k

I wish I had put the 100k in tbills.. I would be rocking 15% profit or put it in mutual funds where it would have grown since January...

Am wiser... But I want to learn stock Shaa... grin it's safer than these HYIP schemes

4 Likes

Re: Treasury Bills In Nigeria by awesomeJ(m): 9:58am On Apr 14, 2018
RealityShot:
10% per year is too small Naa!
But they loss 100% in 7days!

Greedy Nigerians. grin

I put 50k in the stock market in January.. Now it's 45k
I also put 50k in money market fund same January.. Now it's 53k

I wish I had put the 100k in tbills.. I would be rocking 15% profit or put it in mutual funds where it would have grown since January...

Am wiser... But I want to learn stock Shaa... grin it's safer than these HYIP schemes

In my opinion, the stock market has its seasons. When the time is right, it won't be too difficult to get it right. For instance, Almost everyone who bought stocks in April last year, and sold off last January made significant gains, without much regards to the particular stocks they bought.

2 Likes

Re: Treasury Bills In Nigeria by RealityShot: 10:12am On Apr 14, 2018
awesomeJ:


In my opinion, the stock market has its seasons. When the time is right, it won't be too difficult to get it right. For instance, Almost everyone who bought stocks in April last year, and sold off last January made significant gains, without much regards to the particular stocks they bought.
that's exactly why I want to learn it very well.
It is controllable to some extent.
Re: Treasury Bills In Nigeria by megamart247(m): 4:21pm On Apr 14, 2018
RealityShot:
10% per year is too small Naa!
But they loss 100% in 7days!

Greedy Nigerians. grin

I put 50k in the stock market in January.. Now it's 45k
I also put 50k in money market fund same January.. Now it's 53k

I wish I had put the 100k in tbills.. I would be rocking 15% profit or put it in mutual funds where it would have grown since January...

Am wiser... But I want to learn stock Shaa... grin it's safer than these HYIP schemes


Coinsecure, an Indian cryptocurrency exchange, said nearly $3 million were stolen from its bitcoin wallet, the biggest reported so far in the country’s fledgling virtual currency market.

The theft is expected to further weaken trade in cryptocurrencies, which the government has likened to “Ponzi schemes” that offer unusually high returns to early investors.

Coinsecure, which has over 200,000 users trading on its platform daily, said that around 438 bitcoins, which were stored in a password-protected virtual wallet were siphoned off to an unknown destination on the internet after the details were leaked online.

“We regret to inform you that our bitcoin funds have been exposed and seem to have been siphoned out to an address that is outside our control,” the company said in a statement posted on its website.

https://uk.reuters.com/article/us-crypto-currencies-india/indias-coinsecure-exchange-says-3-million-worth-of-bitcoins-stolen-idUKKBN1HK0UQ

2 Likes

Re: Treasury Bills In Nigeria by chukzyfcbb: 11:09pm On Apr 14, 2018
RealityShot:
10% per year is too small Naa!
But they loss 100% in 7days!

Greedy Nigerians. grin

I put 50k in the stock market in January.. Now it's 45k
I also put 50k in money market fund same January.. Now it's 53k

I wish I had put the 100k in tbills.. I would be rocking 15% profit or put it in mutual funds where it would have grown since January...

Am wiser... But I want to learn stock Shaa... grin it's safer than these HYIP schemes
I want to believe you didn't make a pass at crypto traders because those guys affected were affected because they used the services of a broker. If they had done it themselves they wouldn't have been crying.

Just so u know people are still making money in crypto despite the bearish season

1 Like

Re: Treasury Bills In Nigeria by BENARI: 11:37pm On Apr 14, 2018
Due to the dwindling rates both in TB and Money market funds in nigeria recently, am considering investing in the treasury bills or Money market funds of other African countries that offer better returns in terms of rate. Has anyone tried that before; and what countries do we know that offers better rates other than Ghana?

pls share any knowledge you might have on how to go about this and potential ups and downs.
Re: Treasury Bills In Nigeria by Olarewajub: 6:01am On Apr 15, 2018
It's almost 2 weeks since my investment got matured. I 've contacted my Bank (FBN) both physically and electronically, but their response seems not to be coherent. What could be the problem?
Re: Treasury Bills In Nigeria by ositadima1(m): 7:49am On Apr 15, 2018
Olarewajub:
It's almost 2 weeks since my investment got matured. I 've contacted my Bank (FBN) both physically and electronically, but their response seems not to be coherent. What could be the problem?

I hope you did not tick rollover principal and interest on the form they gave you. What is their response exactly?
Re: Treasury Bills In Nigeria by Olarewajub: 8:14am On Apr 15, 2018
ositadima1:


I hope you did not tick rollover principal and interest on the form they gave you. What is their response exactly?

I was told to wait until the next bidding date.
Re: Treasury Bills In Nigeria by RealityShot: 12:20pm On Apr 15, 2018
chukzyfcbb:
I want to believe you didn't make a pass at crypto traders because those guys affected were affected because they used the services of a broker. If they had done it themselves they wouldn't have been crying.

Just so u know people are still making money in crypto despite the bearish season
well "broker" or hmmm...
It's the HYIP that they went in for not CRYPTOS.

Do they care about how crypto work? Nope!
Just the gains.. Now that's the greed!

I have no beef with crypto traders. They have the risk appetite so it's no different from forex trading.

2 Likes

Re: Treasury Bills In Nigeria by RealityShot: 12:23pm On Apr 15, 2018
Olarewajub:


I was told to wait until the next bidding date.
better go and fill the forms for next bidding on Monday otherwise buy from secondary market. Don't let your funds lie fallow for even 2weeks
Re: Treasury Bills In Nigeria by dipoolowoo: 2:32pm On Apr 15, 2018
Re: Treasury Bills In Nigeria by awesomeJ(m): 2:39pm On Apr 15, 2018
BENARI:
Due to the dwindling rates both in TB and Money market funds in nigeria recently, am considering investing in the treasury bills or Money market funds of other African countries that offer better returns in terms of rate. Has anyone tried that before; and what countries do we know that offers better rates other than Ghana?

pls share any knowledge you might have on how to go about this and potential ups and downs.

One sure thing to watch out for is the currency volatility.

For instance, 1 cedi is currently about #80.

So if you take 8m to Ghana to buy their bills at 20% yield, your capital would be 100,000 cedis, which amounts to 120,000 after a year.

However, if after that 1 year, the exchange rate has become #60 to 1 cedi, you'll be coming back with 7.2m versus 9.2m that you would have made if you stuck with our own 15% yield.

However, if you're sure this exchange rate risk isn't very likely, I think you can approach Ecobank. Since they are pan African, they should be licensed to trade Ghanian T-bills.

The naira/cedi rate seems to have been relatively stable though over the past year, and the little volatility seems to be in favour of the cedi. Should the trend continue, then it'll be a smart move.

2 Likes

Re: Treasury Bills In Nigeria by BENARI: 5:16pm On Apr 15, 2018
awesomeJ:


One sure thing to watch out for is the currency volatility.

For instance, 1 cedi is currently about #80.

So if you take 8m to Ghana to buy their bills at 20% yield, your capital would be 100,000 cedis, which amounts to 120,000 after a year.

However, if after that 1 year, the exchange rate has become #60 to 1 cedi, you'll be coming back with 7.2m versus 9.2m that you would have made if you stuck with our own 15% yield.

However, if you're sure this exchange rate risk isn't very likely, I think you can approach Ecobank. Since they are pan African, they should be licensed to trade Ghanian T-bills.

The naira/cedi rate seems to have been relatively stable though over the past year, and the little volatility seems to be in favour of the cedi. Should the trend continue, then it'll be a smart move.
Well said, thanks.
Re: Treasury Bills In Nigeria by beyolah: 5:19pm On Apr 15, 2018
Hello everyone
Does Stanbic have the reinvest interest option for their Tbills?
Re: Treasury Bills In Nigeria by chukzyfcbb: 5:58pm On Apr 15, 2018
awesomeJ:


One sure thing to watch out for is the currency volatility.

For instance, 1 cedi is currently about #80.

So if you take 8m to Ghana to buy their bills at 20% yield, your capital would be 100,000 cedis, which amounts to 120,000 after a year.

However, if after that 1 year, the exchange rate has become #60 to 1 cedi, you'll be coming back with 7.2m versus 9.2m that you would have made if you stuck with our own 15% yield.

However, if you're sure this exchange rate risk isn't very likely, I think you can approach Ecobank. Since they are pan African, they should be licensed to trade Ghanian T-bills.

The naira/cedi rate seems to have been relatively stable though over the past year, and the little volatility seems to be in favour of the cedi. Should the trend continue, then it'll be a smart move.
true but about 3yrs ago when I made research on Ghana's Tbills I discovered that it wasn't open to foreigners. I don't know if that policy has been changed now.

1 Like

Re: Treasury Bills In Nigeria by awesomeJ(m): 6:37pm On Apr 15, 2018
chukzyfcbb:

true but about 3yrs ago when I made research on Ghana's Tbills I discovered that it wasn't open to foreigners. I don't know if that policy has been changed now.
I think Kenya's too is that way. Not open to foreigners. The subscription rates for bills is often low, yet discounts are high with their currency being among the best in Africa.
Re: Treasury Bills In Nigeria by diamond88: 7:29pm On Apr 15, 2018
Best place to be
Re: Treasury Bills In Nigeria by Ifelove1(m): 8:14pm On Apr 15, 2018
I would be going to the bank tomorrow to purchase T-bills. Do you think that a bid of 13% will be successful based on recent rates?
Re: Treasury Bills In Nigeria by awesomeJ(m): 8:22pm On Apr 15, 2018
Ifelove1:
I would be going to the bank tomorrow to purchase T-bills. Do you think that a bid of 13% will be successful based on recent rates?
Will you be bidding tomorrow? No you won't.

The available rates will be shown to you, 13% may be hard to come by, but you should get above 12.5% for tenors above 180days sir.
Re: Treasury Bills In Nigeria by BENARI: 8:42pm On Apr 15, 2018
awesomeJ:

I think Kenya's too is that way. Not open to foreigners. The subscription rates for bills is often low, yet discounts are high with their currency being among the best in Africa.

How about we do some more research on this. From my findings, the best rates for money instruments are found mostly in Africa.

Other than TB, We can look at bonds as well. Most Bonds are denominated in Dollar and Euro. That is usually open to foreigners I want to believe. The bonds offer one very important advantage; it's shielded from domestic currency fluctuations. The disadvantage though is that the rates are lower. In Nigeria for example, the eurobond is around 7 to 8%, almost have the TB rate. During times of currency fluctuation however, it is a safer choice given that currencies in Africa tend to rally negatively against western currencies.

So let the research begin and let's see what we can come up with.
Re: Treasury Bills In Nigeria by Ifelove1(m): 9:03pm On Apr 15, 2018
awesomeJ:

Will you be bidding tomorrow? No you won't.

The available rates will be shown to you, 13% may be hard to come by, but you should get above 12.5% for tenors above 180days sir.
Wow.... Thanks.
Please I don't understand what you mean by I won't be bidding tomorrow. Do you mean if I go tomorrow, I will still need to go on Wednesday? Can you please send more light on the issue?
Re: Treasury Bills In Nigeria by awesomeJ(m): 9:28pm On Apr 15, 2018
BENARI:


How about we do some more research on this. From my findings, the best rates for money instruments are found mostly in Africa.

Other than TB, We can look at bonds as well. Most Bonds are denominated in Dollar and Euro. That is usually open to foreigners I want to believe. The bonds offer one very important advantage; it's shielded from domestic currency fluctuations. The disadvantage though is that the rates are lower. In Nigeria for example, the eurobond is around 7 to 8%, almost have the TB rate. During times of currency fluctuation however, it is a safer choice given that currencies in Africa tend to rally negatively against western currencies.

So let the research begin and let's see what we can come up with.
I totally agree with every suggestion/point you've made.

We should research more on investment vehicles available across Africa.
Eurobonds are great hedges against currency fluctuations.
I don't really think anyone should keep idle funds in their dorm accounts, when those funds could be earning. The FMDQ provides secondary market for some of those bonds too, making it possible to terminate prematurely if you want. I however don't know what the investment threshold is.

Like I said, I appreciate every point you've made. Thank you.

1 Like

Re: Treasury Bills In Nigeria by awesomeJ(m): 9:33pm On Apr 15, 2018
Ifelove1:
Wow.... Thanks.
Please I don't understand what you mean by I won't be bidding tomorrow. Do you mean if I go tomorrow, I will still need to go on Wednesday? Can you please send more light on the issue?

What I mean is:
When you go the bank tomorrow, you won't have to bid as you will be buying from the secondary market. Bids only happen at the primary market auctions, the next of which is scheduled for this week's Wednesday.

Except, what you meant in your original post is that you're going to place a bid/an instruction tomorrow for the upcoming Wednesday auction.

If that's the case, then kindly forgive my taking your post out of context. It must have been that phrase " to buy T-bills tomorrow"
Re: Treasury Bills In Nigeria by Ifelove1(m): 9:49pm On Apr 15, 2018
awesomeJ:


What I mean is:
When you go the bank tomorrow, you won't have to bid as you will be buying from the secondary market. Bids only happen at the primary market auctions, the next of which is scheduled for this week's Wednesday.

Except, what you meant in your original post is that you're going to place a bid/an instruction tomorrow for the upcoming Wednesday auction.

If that's the case, then kindly forgive my taking your post out of context. It must have been that phrase " to buy T-bills tomorrow"
Okay, I understand now. Thank you very much.

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