₦airaland Forum

Tear!

Your brains.

Biafra of course.

Are there 2 jados?

kaybams1:
No sir. CBN Issues currency no doubt but not without a demand for it from the private sector. The supply of money from the CBN has to match the demand for such money from the private sector. For instance, when CBN buys securities from the private sector, it does so with the aim of increasing money supply. How is it done you might want to ask. When there is high demand for a particular security, its price will rise and the interest rate of that security will fall.

Note that there is a negative relationship between the price of a security and its interest rate such that if the price of that security rises, its interest rate will fall. And the factor that raises the price of a security is when the demand for it increases. And when interest rate falls, price of securities rises and people will be more interested in the market to take advantage of price fluctuations, the real sector too will thrive and the demand for money will rise. When this happens, the CBN will then increase money supply to match that demand but it does so by buying the securities the private sector sells to it. This security will now be the thing of value backing the money issuance.

So in essence, Central Bank can only influence the increase in money supply through either the direct reduction of Monetary policy rate which is the central interest rate that other interest rates responds to OR it Increases money supply through the Open market Operations which includes buying securities to back the money its pumping into the economy. But there is no such thing as printing money without something of value exchanging hands.

Thank you. You're a wonderful person.

mazeltov:
the goverment does its own business by the help of apex bank. Business like Sales of crude oil

Okay.

Sales of crude oil means dollars.
Please enlighten me, is it that the government puts the sales profit into circulation? and since we don't spend dollars, print notes equalling the sales profit?

Is it that the money we spend now have always been there? Or the CBN prints money regularly? What's more money? What's the money printed normally? Where did the bailout fund come from? There's already inflation in Nigeria, I think?

Please shed light.

What happens when you win?

You're the unidentified object.

The 3rd picture.
The nigga is scared!

This is awesome. When was your birthday btw?

There are too many to choose from. And we've to start letting them pay for their mistakes.

I see nairaland.

jomoh:
Kindly enumerate why you think it is not.

I think Israel is, no doubt. ....

And they don't need to construct the devil and start stoning the construction to achieve that.

Like they are testing the strength of their bricks or what?