₦airaland Forum

Not interested, only bankers will understand those banking grammar.

Expect inflation

This is bad news...

I will explain

Ordinarily people invest in TB to get good returns.

CBN is reducing the return rate interest lower than what it USED to be, and also increasing the time frame thereby killing turnover and expected return on investment.

Hope that made sense to you

Yah, bad news for investors and good news for the economy, as people will now invest in SME than fixing their money

Apart from Dangote and few fulani people, many of dem are parasites to other tribes. Imagine a community i left for more than 12years, the community best building dere are in full zinc roofings.

It shows that doing business in Nigeria is not secure. Nobody wants to invest in real sector too bad

ntyce:
Good news

How is this good news , the govt first excludes many parties from OMO which lured people toward treasury bills and then they reduce the interest rates

izzou:
Are you serious?

What's the effect of this? Finance is not my forte

In a nutshell, bad for investors, good for borrowers (which is majorly the government)

U should know Nigeria government will Neva do anything to favour u

alizma:
Good news

How's this good news, can you explain.

What impact will it have on the lives of the common masses. Will it reduce the price of rice in the market


Check out my signature for good quality furniture for your homes and offices

VicThory:
Is it for good or bad?



I don't understand


lalasticlala


mynd44

It's is not good news for those who invested in T-bills,......
I hope they don't end up discouraging those of us who are just about to start, single digit ain't good enough really, but a very safe investment still.

Even TB investment returns has dipped.
The level of miserability will skyrocket for the common man.

despite being an economics student, I still don't understand all these analysis

I think someone should explain better for me

rastamouse:
For those asking whether its good or bad, it depends where you are. If you bought some of the bills, its a bad news for you.

However if you are a business, this is a good news. When the treasury bills rates go down, banks turn to borrowers. If the rates are high, the banks prefer to invest in those bills.

Hope I explained something

Double digits for.the economy is a bad signal. But can be rewarding for traders. In fact, it is good for the buyers....but terrible for Nigeria. US treasury which is regarded as one of the best in the world is not even up to 7%. And investors pump in billions of dollars there cos it is the most assured paper investment in the world. You.cannot lose.

It's bad news for the average Nigerian intending to invest because it means that the return on investment for treasury bills have been crashed by the CBN.

Consequent upon this fixed deposit rates will be cut by Banks.

DenreleDave:
.. Pls i am a banking and finance student, can someone explain more about this to me?

I bliv learning is unending

Banking and finance? U better g o do something else

This will suffer low patronage.
We will move to money market and mutual funds.

VicThory:
Is it for good or bad?


I don't understand

Less rate means less ROI.
You can judge whether it's good news or bad news.

What about those with TBills certificate of 10.5%?
Well, I've collected my interest already, Tbills and FD will now be dragging rates.

Meaning if you want double digits, sub for 1year
Anything below that remains within single digit
Too many subscription for lower time frames.

VicThory:
Is it for good or bad?



I don't understand


lalasticlala


mynd44

Good for government, bad for investors which ultimately is bad for government I suppose.

It is a normal thing in financial market.
Example: let's say bank is giving 10% interest for fixed deposit, suddenly many people start investing to get the 10%. If the money invested becomes too much compared to the rate of borrowing by customers, then the bank reviews the interest rate on fixed deposit to balance the equation.

So in a nutshell it is up to you to accept the lower interest rate or take out your investments and put somewhere else. In economics it is simply still the law of "Demand and Supply". No hard feelings

Mydazz:
It's is not good news for those who invested in T-bills,......
I hope they don't end up discouraging those of us who are just about to start, single digit ain't good enough really, but a very safe investment still.

They are already planning to stop selling T bills to individuals.
Whatever is their reason, I don't think it's good enough to discourage investors.
It's their call anyway.

rastamouse:
For those asking whether its good or bad, it depends where you are. If you bought some of the bills, its a bad news for you.

However if you are a business, this is a good news. When the treasury bills rates go down, banks turn to borrowers. If the rates are high, the banks prefer to invest in those bills.

Hope I explained something

There is no bad news here. Government did not reduce the rate on already sold out treasury bill but on the new one being sold out. So you are aware of the rate before buying it.
Treasury bills always carry on them the interest rate(coupon rate), so the existing ones retain the rate at which they were sold

Pistotita:
Bravo!!!

Nigeria is a mad area when it comes to investment. Canals everywhere. I always wonder why Nigerian Bill's are double digits. It is crazy. Cabals everywhere. Inside trading in Nigeria is mad.

All those comments up are funny. They are waiting for comments to follow up. Lol. You will see them modifying very soon.

Nairaland is really a terrible site. Lol. Instead of them to leave the spot for people who can make reasonable comments....they will be booking space. And then...they will still make useless modifications. Chai.....Seun needs to really buckle up. Many things wrong with NL. Honestly.

What’s the meaning of all these.

Damn!

Maybe it's time to consider fixed deposit

Pistotita:
Double digits for.the economy is a bad signal. But can be rewarding for traders. In fact, it is good for the buyers....but terrible for Nigeria. US treasury which is regarded as one of the best in the world is not even up to 7%. And investors pump in billions of dollars there cos it is the most assured paper investment in the world. You.cannot lose.

Neither can you lose that of Nigeria too

infact, except a country no longer exist, your money remain safe

VicThory:
Is it for good or bad?



I don't understand


lalasticlala


mynd44

Bad news for investors , good news for government.

ornicus:
Crap. The train is coming to an end . Just as I was getting on board

I swear

DenreleDave:
.. Pls i am a banking and finance student, can someone explain more about this to me?

I bliv learning is unending

u too? Haba.

What they have done is a routine part of their job which is control/regulation.