What is obb in banking?
Open Buy Back (OBB), are discountable securities traded in the Nigerian Inter-Bank financial market. An Open Buy Back is a money market instrument used to raise short term capital. It is a form of borrowing using Nigerian Government Securities as collateral.
How does repurchase agreement work?
In a repurchase agreement, a dealer sells securities to a counterparty with the agreement to buy them back at a higher price at a later date. The dealer is raising short-term funds at a favorable interest rate with little risk of loss. That is, the counterparty has sold them back to the dealer as agreed.
Why are repos used?
The repo market allows financial institutions that own lots of securities (e.g. banks, broker-dealers, hedge funds) to borrow cheaply and allows parties with lots of spare cash (e.g. money market mutual funds) to earn a small return on that cash without much risk, because securities, often U.S. Treasury securities.
What is CBN interest rate?
11.5 percent
The monetary policy committee of the Central Bank of Nigeria (CBN) has announced its decision to maintain the monetary policy rate (MPR), which measures interest rate, at 11.5 percent.
What is the CBN exchange rate?
CBN Exchange Rates
| Currency | Sell / Buy Rate | Change |
|---|---|---|
| USD | ₦ 411.29 / 410.29 | 0.00% |
| EUR | ₦ 474.38 / 473.23 | -0.11% |
| GBP | ₦ 553.02 / 551.68 | -0.92% |
| ZAR | ₦ 26.93 / 26.87 | -0.08% |
What is a buy sell back transaction?
A buy-sell back transaction or sell-buy back transaction is a transaction by which a counterparty buys or sells securities, commodities, or guaranteed rights relating to title to securities or commodities, agreeing, respectively, to sell or to buy back securities, commodities or such guaranteed rights of the same …
Why do banks reverse repo?
For the Fed, repo is meant to prevent overnight interest rates from going too high, and reverse repo is meant to prevent them from going too low.
Which Nigerian Bank has the highest interest rate on savings account 2020?
Market observers hailed the Fidelity High Yield Savings Account in 2020, as one of the best in the market. Fidelity Bank currently offers the highest interest rates for savings deposit accounts (target) in Nigeria in 2021 – 3.5%.
What is the current interest rate in Nigeria 2021?
11.5%
| Calendar | GMT | Previous |
|---|---|---|
| 2021-05-25 | 01:30 PM | 11.5% |
| 2021-07-27 | 01:30 PM | 11.5% |
| 2021-09-17 | 01:30 PM | 11.5% |
| 2021-11-23 | 01:30 PM | 11.5% |
What does it mean when a company does a share buyback?
Share repurchase (or share buyback or stock buyback) is the re-acquisition by a company of its own shares. It represents a more flexible way (relative to dividends) of returning money to shareholders.
What happens in a manufacturer’s buy back agreement?
The distributor encounters financial difficulties and decides to terminate the contract. In this situation, if the manufacturer stipulates in the buyback clause that the distributor must sell the items back to the manufacturer, it eliminates the potential for the items to be liquidated or sold at reduced prices.
What does it mean when a company does a leveraged buyback?
A leveraged buyback is a corporate finance transaction that enables a company to repurchase some of its shares using debt. Earnings typically refer to after-tax net income or a company’s profits. Earnings are the main determinant of a company’s share price.
What was the cost of the gun buyback program?
It was agreed to establish a temporary firearm buyback program for firearms that were once legal now made illegal, that according to the Council on Foreign Relations bought over 650,000 firearms. This program, which cost $230 million, was paid for by an increase in the country’s taxes.