Our Treasury Unit disseminates a Daily Market Watch which gives our customers information on the Bank’s daily foreign exchange trading rates, foreign exchange forward rates, Investment rates and ZSE indices. The Daily Market Watch also covers foreign currency news and commodity news. Stay up-to-date by signing up for the Daily Market Watch.
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At NMB Bank, we help you invest your funds to achieve specific financial goals. Over the years, our experienced team has helped customers manage interest rate and foreign exchange rate risk. Our Treasury Unit offers the following services:
- Accepting and discounting bankers’ acceptances and promissory notes
- Trading in securities which include treasury bills and bonds
- Advice on money market matters
- Advice on foreign exchange matters
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Money Market Investments
Our experienced team offers you advice on investment options available to you in both local and foreign currencies. Interest rates vary with the size of the deposit as well as the duration of the investment. We offer the following money market investment options:
This is a high interest bearing investment account where a fixed sum of money is invested at a fixed interest rate, for fixed a period (tenor). The tenor is entirely at the discretion of the investor or client. With a Fixed Deposit, you will be cushioned from adverse interest rate movements as the return is agreed on at the point of placing the investment.
Features of a Fixed Deposit
- Deposit has to be maintained for the duration agreed at placement, that is, 30, 60, 90 or 180 days
- Any early redemption of the Fixed Deposit attracts a charge
- Can be used as collateral security on overdrafts or loans
- Can be re-invested without loss of interest
- Interest or maturity proceeds are transferred to the account where the funds came from
- Fixed Deposits have a higher return on investment than transactional accounts
- NMB Bank accountholders and non-accountholders can invest in a Fixed Deposit
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Banker's acceptance (BAs) is a promised future payment, which is accepted and guaranteed by a bank. Banker’s acceptances are relatively safe investments, since the bank and the borrower are liable for the amount that is due when the instrument matures.
Features of Banker’s Acceptances
- Vary in amount and are in line with the loan size
- The date of maturity typically ranges between 30 and 180 days from the date of issue
- Tradable on the secondary market before the acceptances reach maturity
- Used as security when picking investment deposits
Promissory notes are a common financial instrument employed principally for short time financing of companies. Often, the seller or provider of a service is not paid upfront by the buyer (usually, another company), but within a period of time, the length of which has been agreed upon by both the seller and the buyer. The reasons for this may vary; historically, many companies used to balance their books and execute payments and debts at the end of each week or tax month; any product bought before that time would be paid only then. This deferred payment period usually ranges between 30 to 90 days after the purchase.
Treasury Bills and Bonds
Investments can be made in these gilt edged securities issued by the Central Bank/ institutions and guaranteed by the Government. They usually have the following features:
- Liquid Asset Status
- Prescribed asset status
- Tradable in the secondary market
- Interest rates are market related and investors are guaranteed security on their savings
- This involves the buying and selling of all major currencies in their various forms. These must be delivered within a period of time not exceeding two business days. NMB Bank provides competitive quotes for the various currencies.
RBZ Forex Auction
As NMB Bank, we help our customers with importing needs to apply for foreign currency from the RBZ Auction System, at the interbank rate.
It is a contract between the bank and its clients in which the exchange/conversion of currencies takes place at future date at a rate of exchange in advance under the contract. The prime benefit of entering into a forward contract is to peg the exchange rate and thereby avoid the exchange risk.