₦airaland Forum

Lubbish

Easybet1:
Na band Z be that

I doubt, the letter to our Band may not be in English alphabets again...may be we need to look for it in Greek alphabets.

Please o, we that only have like 6 hours of electricity per 2 weeks, what band are we??

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070 FourSix 14 SevenOne TuTu

Reserved.

What is MPR?

MPR simply means Monetary Policy Rate, it is the interest rate placed on your fund when you borrow, make fixed deposit, or invest in treasury bills.

How does its increase impact our economy?

In economics, for every good effect, there is always corresponding bad effect.

The Good.

1. Borrowing: MPR of 24.75% means interest rate of borrowing from banks will increase, this will force people to borrow less, reducing money in circulation. If there is a decrease in money in circulation, there will be decrease in demands for goods and services. This will in return make the prices of these goods and services to fall, law of demand and supply.

2. Attraction of foreign Investors: If foreigners see that they have a good deal (high MPR) if they invest in Nigeria, either direct or portfolio investment. They will commit their hard currencies to Nigeria which will be a big boast to our economy.

The Bad.

High MPR means people taking loans from bank will have to hike the prices of goods and services they render through the borrowed money.

Why was MPR increased in the first place??

Increased interest rate generally leads to decrease in inflation rate.

High MPR is a plot to reverse the forward movement of the inflation rate.

The MPR as we speak stands at 24.75%.

Though, MPR was recently increased, CRR still stands at 45%, Asymmetric Corridor remains at +100/-700 basis points and Liquidity ratio unchanged at 30%.

What do these figures imply??

1. Cash Reserve Ratio (CRR): For every money deposited into a particular bank in a previous working day, CRR of 45% will be sent to CBN. Meaning, if a bank gets total deposit of 100M naira in a day, 45M naira from the fund will be sent to CBN to be kept for them.

2. Liquidity Ratio (LR): For every money you deposit to your bank, 30% of the money will be kept for you in the vault in case you need to make withdrawal, the remaining 70% for other purposes.

3. Asymmetric Corridor (AC): CBN and commercial banks do business too. Banks can get loans from CBN and they can also keep their money with CBN.

The Asymmtric Corridor which now stands at +100 /-700 basis points will be used to calculate what interest rate CBN is placing on loans giving to banks as well as interest rate CBN is giving the banks if banks fund is kept with them.

For loans taking by banks from CBN, 25.75% (24.75% + 1%, which is +100 AC) interest rate will be imposed on them.

For fund kept with CBN, banks get 17.75% (24.75% - 7%, which is -700 AC) interest rate from CBN.

The Twist

If MPR is 24.75%, CRR is 45%, LR is 30% and AC is +100/ -700 basis points, what effects do these have in our economy??

Let's see what happens to every N100 you deposit to your bank.

N100 to your bank
N45 (CRR) will be sent to CBN
N30 will be kept for you for withdrawal.

The remaining N25 will be available for loan and few others.

If N25 is available for loan from the initial N100 you deposited, banks will be short of enough cash to give out for loans. This is good to reduce money in circulation, I explained the effects this will have earlier.

For the remaining N25, your bank can either borrow individuals at an interest rate they will calculate using the MPR of 24.75% or keep it with CBN at 17.75% interest rate.

These numerous strategies all have one thing they aim to achieve, reducing the inflation rate which currently stands at 31.7% as at February 2024.

Also, placing high MPR on loan you are taking from banks reduces money in circulation as well.

Inspirer1:
Implications?

I have done the analysis of the implication somewhere before.

Nnj

shadrach77:
How did countries like US, UK and Canada have several languages? I thought it's only English they speak

Migrants

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##07___04___614___=#==71---22

MyExpression:
Contract ends upon payment/receipt.

It's It's longer your property...you can only charge security fee for the 2hr demurrage.

Nothing concern dollar for this one...but the good thing is...as long as item still dey ur shop, you can breach the contract and stay execution.

...and he can sue you for every value of that 1.6m within those 2hr you had his money in your custody.
If you want him to pay the current cost of the doors, then you have to refund the current monetary value of the 1.6m he gave you 2hrs ago.



You think say you dey wize!

You aired my view already...if anyone tries this with me, I am getting the current time-value of that money sent to him if he wants to refund me. Shebi nah stupid the seller wan stupid.

Simply commendable

Anybody who lives or works in Lagos can testify that this Lagos is a state to be. One of few things I don't like about the state is dirtiness and lack of good maintenance to majority of these infrastrutures.

Long live LASGIDI.

This is how it happens in every sector, betrayal, business heist. Everyone is just trying to get to the top of the ladder, by all possible means.

Recapitalization under Obasanjo brought tears to some, laughter to others. It is about who knows who and who knows the rule of the game but doesn't follow it. Small business buying big ones, you will wonder how on earth is that possible, in Nigeria's crime, that is in fact order of the day.

It will be someone from the Lagos State civilized service...go and write it down.

Nokio2:
Add my uncle Gebu
The great palm wine tapper
He fell from 20ft tree
He pass through the air b4 crashing

This guy

You lack good sense of judgement bro...

Nairaland software design pattern is somehow wack. I notice that whenever any of my posts is banned, I will see empty boxes without the said post inside. It looks so ugly and annoying.

What you could have done is to create an extra column in the table where all the posts are saved, let the column decide if a post is banned or not, when fetching for users posts, only fetch posts that are not banned. Then you won't have to use client side code to handle which post is allowed be displayed.

This is 2024 NL.