FOREX Vs FGN Bonds in Nigeria 2024 | Flo Finance
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- Опубликовано: 25 мар 2024
- Investing in FOREX Vs FGN Bonds in Nigeria 2024
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As an ex Nigerian banker who worked in branches at the port and in the market, I can confirm that A LOT of money was kept under beds in sacks and Ghana-must-go bags. Both the people selling and buying FX did it. This money would be covered in dust, stinking and falling apart after being chewed on by rats. You can't refuse it because it is all legal tender. When the money is too degraded for the machine to count it's done by hand. Plenty, plenty bribe with dinner, taxi fare, overtime "pocket change" just to placate us to make us stay.
Very interesting. The person who made the comment is not actually investing at all.. He is using the paper dollars as a store of value, as a hedge against inflation. He would be much better off putting the money into physical gold which is more powerful and stable than any paper currency bar none!
Thank you,you are just an eyes opener
Thank you Ma for sharing this 💞
Thank you aunty flo. i learned from your experience
Thank you so much for another amazing video
You are 100% right in your argument as a low risk taker....The buy dollar and hold description ..is a Speculative action not an Investment in the real sense of financial studies.
However, it is doable by a high risk taker in an environment like Nigeria, noted for very high volatility.. it does wipe out people out completely...financially.
Buy and hold dollar is not a real investment strategy but a speculation with its ardent uncertainty and risk..
I mean, there are dollar denominated investments the person would have put the money into for income generation + safety instead of hoarding. Even though I wouldn't buy dollar at this high rate to invest but that's still a better option. Anyway, such comments show that there is still a lot of work to be done in this financial education.
Thanks Basil.
Nice contents, I agreed with you on 100% perceive income
Option 1: Buy dollars, use it to buy FGN eurobonds (7% returns per year till maturation) or use it to buy mutual funds (6%) returns. Challenge with FGN naira bonds and bills, rates are way below inflation rates.
PS I agree that we should eliminate use of dollars within the borders of Nigeria. Too many businesses ask for payment in dollars. That weakens the naira.
Have you considered the Management Expense Ratio for your European mutual funds?
Have you considered the capital gains tax on the interest earned from your Euro bonds and mutual funds?
Have you considered the Eurozone inflationary rates of greater 3%?
How many Africans & Europeans actually have significant money to invest in Europe even if said Africans have residency?
You seem to be confusing Euro bonds as investments in Europe or the Eurozone, to be more specific. It is not necessarily so.
Eurobonds are bonds issued offshore by governments or corporates denominated in a currency other than that of the issuer's country, and are typically denominated in U.S. dollars.
thanks, this i can look into, it makes more sense
Keep it up Flo. I stopped investing for some time now but after listening to you for a while I've decided to resume investing next month especially now that interest rate is picking up
Thanks for a thought provoking presentation. As far as I know the older you get the less risk you should take with your hard earned money.
Mostly true. For me, my investment goals have always been laid back. Like I said in the video, I work hard to make money, I will not apply hustle culture when investing it. Nah, I'll rather work more to make more money than work too hard at "investing".
@@FloFinance Slow and steady always wins the race especially in investing.
I think the 90 days treasury bills at 17% makes more sense for investing, at the moment, than the current FGN bonds.
You're very correct!
Thanks for all the wonderful insight Madam flo.
You gained a subscriber yesterday. Kindly explain how one can get a stock broker.
Thanks
Send her an email
Watch the following video: ruclips.net/video/J1CGDNyi4EM/видео.html for how to find a stockbroker perfect for your investment needs.
Would you advise having a domiciliary account in Nigeria?
I have learnt so much about investing from you and intend to buy FGbonds when I get to Nigeria later in the year. Are there particular banks you recommend to buy these bonds or should I use my current Nigerian bank? I only have savings account with this bank.
Is it worth getting a current account as I only have a savings account?
God bless you for all you hard work Nne, well done. You are the best.
Dollar is a very risky investment like every other investment too
You conviniently left out the most important argument against the fgn bonds.. INFLATION!! Inflation is 31% and rising, FGNBonds are giving 15%, make it make sense
****With inflation that high, you are holding a worthless bond, no one would buy it from you in the open market. You get your principal and interest at maturity but inflation has eroded the value.
***You would have been better of raising chickens with the money....Lol.
What is your metrics for calculating inflation? Are you buying all the inflationary goods/services all at once and on the same day you get paid your interest from the bonds?
Are the interest payments not enough to live off of during your investment period? That is the question you should be asking.
The $ has just lost about 25% value against the Naira over the last 3 weeks alone. How is that a good investment?
@@MichaelO2 This quote below is from IMF, if you cant find simple info on inflation, I am not going to argue with you. As of January inflation was 29% and we know what happened after . If you want more info go to IMF site or google, its free. "The MPC increased the policy rate by 400 basis points to 22.75 percent for a total tightening of 1,025 basis points since May 2022. This decision should help contain inflation, which reached 29.9 percent year-on-year in January 2024, and pressures on the naira" Just to help you small, if 15k naira can buy you a bag of rice in January and can only buy you half a bag in march , that is the effect of inflation rising, do you see how locking up ur money for a long time is useless, especially as we all know including FLO saying people in aso rock dont know they are doing. if the fgn bong rate is equal to or higher than inflation then investing in it makes sense, at 15% ur money will be useless at the end. If you have faith in Tinubu that in 2 -3 yrs he will bring inflation back down to below 15% so when you get your principal back it has some value then go ahead. I hope I have been able to help you see what I am saying otherwise go get a book and read. All adults should understand basic finance.
Inflation, Inflation, Inflation! Make una no worry, I will address that. Be patient. 😄
By the way, even if inflation were 50%, I would still invest in the bond over hoarding the dollar under my bed. Any thing is better than hiding money under the bed. It's not even up for argument.
Remember, I started the series by saying that I am here to share the INVESTMENTS for this season in Nigeria, but due to arguments we are still on no. 1. lol
Good day, whether you invest in bonds, ‘forex’ and other financial instruments, the crux of the matter is to have an investment philosophy and stick to it. For me, I subscribe to value investing and go for the long haul.
I see what you did there, putting the forex in quote. 😃
Some people just copy what others are doing, no investment philosophy whatsoever.
Really i enjoy your post,can you pls make post about online sales,i really want to sale thing online eg amazon online sale, pls educate me bcs you are detailed and full of information
Hello, I'm sorry I don't share that on this channel. Search Amazon FBA on this RUclips and you will find thousands of excellent videos on that.
Thanks ma for this video.
Inflation is about 30% in Nigeria now. FGN Bond Effective yield :
2 years - 15.973%
3 years - 17.095%
This means you are still losing money. I do mutual funds and Riets (Real Estate Investment Trusts) as passive forms of investment and I make up to 32% in a year, slightly above inflation rate.
What mutual funds and Riets do you invest in??
I recently listened to your talk about bonds and found it very interesting. Five years ago, I converted a sum of US Dollars to Naira for a project in Nigeria. Unfortunately, the project didn't take off, so I deposited the money in a savings account. Looking back, it was a wrong decision. I have yet to have the opportunity to visit Nigeria, and the money has lost almost 70% of its value due to inflation. Keeping money in a Nigerian bank turned out to be a poor choice. I regret my decision completely. It was a terrible move on my part. I can't wait to invest the money in bonds!! Thanks for the information.
Keeping money in a Savings Account anywhere in the world is not a wise idea/plan.
If you had $1,000 in a savings account in North America in 2021, that amount might rent you a one or even 2 bedroom apartment in most major cities, entirely to yourself.
Today, that same $1,000 will most likely only get you a room in a shared apartment. Where you are sharing the kitchen, bathroom etc with other people.
TeeTee if you have access to the money via online banking, you can invest it in something without visiting Nigeria.
@@FloFinance I couldn’t set up the online banking services the last time I was there, and the bank says I have to be physically present to set it up right now.
@@FloFinance I hope to be back home this December.
Aunty Flo, inflation nko? The dollar helps your money grow as the inflation grows.
I understand you tho, the small dollars I bought 1600 just last week don crash😭 today.
All the save in dollars, save in dollars people, please avoid me! 😢
Thanks for being truthful and reasonable.
@@MichaelO2 are you FLOs alternate account? you are busy replying to all comments. I see my long reply to you in the other comment was deleted
@@aitinsights
1. I don't know Flo apart from on RUclips
2. She is Igbo and I am from Edo State
3. She is a woman and I am a man
4. I don't have the capacity to delete comments and I am sure that its RUclips making any comment disappear because I don't think Flo goes around deleting comments. Remember she said in the video response she made that a comment she wanted to respond to was gone?
@@aitinsights Finally, I love everything about personal finance and most Nigerians lack the ability to critically think about financial decisions but they do like to act as if they are the authority on such matters.
I respond to most of the comments here because I couldn't resist not to.
Michael thank you so much for holding forth for me.
I love the community we are all forming here. We need to start making live videos where you all call in so I'll get to meet you all that have my back. These inflation card-carrying boys would have long destroyed me here if not for you all. 🤣😂
This discussion is security risk, armed robbers will start attacking people at home
Ok so there were no robberies till now. It's this video that will start it. Some comments shaa.
Presido Tinubu dey chill jeje for Aso rock still collect straight bullet lol 😂😂😂
Why he no go collect? na him cause all these wahala. 😅😂
Cone, Where that guy wey write that comment. I dey come thief that dollar😂😂
Don't worry he will bury it on soakerway underground somewhere.
@@clementadeola1477 Ogbe ni, that is even the best. I'll go there and bring it out, a true definition of shit money🤣🤣🤣, ego nsi
Investing in Bond is the best. Expecially with the high interest rate and also risk free
Trading forex is risky, buying Nigerian government bonds is a sign of laziness, willingly taking your money to invest in trash , I have been there and back , it’s not worth it, political and economy instability will devalue your interest , don’t do it
So what should be done instead?
@@smartpromise3430 do real business or go into farming
Honestly, Nigerian politicians have destroyed the future of youths psychologically, emotionally and financially by their inconsistent and unrealistic policies for many decades. This has left many Nigerians in deep confusion of not knowing where and what to invest on today and for this reason many people think and have believed that hoarding foreign currency is an investment. While some people are jumping up with the peanut rate Cbn is offering on bonds or on treasury bills which is less than half of the inflation rate . However, one can still make some money from these on a short term and invest in an any investment of his choice . My little advice for you new investors today to chase or invest in foreign currencies with great cautions because all foreign currencies have jumped on the roof since Tinubu's administration and Cbn's multiple interference in regulating the rate of naria artificially. I personally don't consider any of these now as an investment.