Jackeeh: Maybe she wasn't ready for JAMB. So she decided to "abscond" . Anyway I thank God she's back home safe and sound. And she should be taken to the hospital for the necessary checks.
demzey: Nice one der bro, bt bobo e no work, we're s d money in d 1st place. Why was d interest rate on treasury bills brought down to 6% Frm 15%
Point noted. This inflation is due to an increase in cost of production and not excess cash pursuing fewer goods.
As for the drop in tbills, I would personally associate it to the effect of TSA. The government has realised substantial funds and don't need your chicken change anymore hence the lowering rates
macherie1: Nigeria is definitely in for serious trouble. If the Apex bank is unable to figure out what the problem with the economy is then there is cause for alarm. Surplus money chasing too few goods is Demand-pull inflation which is obviously not what Nigeria is experiencing. What we are experiencing is a cost-push inflation caused by shocks in the economy such as a sudden and sharp decrease in the price of crude oil which accounts for a huge proportion of government revenue. This situation led to devaluation of the Naira since the the government had to raise the exchange rate to realize more Naira from the dwindling revenue from oil export. The spiral effect of the increase in exchange is that manufacturers, importers now need to pay more Naira to buy dollars in order to fulfil their obligation to their foreign suppliers. Subsequently, these manufacturers pass the cost to the consumers and inflations escalates.
CBN's decision to increase the interest rate can be compared to having a noose around one's neck being pulled on both sides by strong forces. Manufacturers who are already crumbling under the weight of high cost of on raw materials (most manufacturers depend heavily on importation of raw materials)due to the ridiculously high exchange rate now have to face another challenge of paying more interest on loans. The implication is that production for most companies will either reduce or come to a halt. Supply decreases and the price of commodities will increase. Inflation digits will double.
What CBN should be doing is pursue policies that will boost production and promote exports. US experienced severe depression in the early 1930s. The depression was fuelled by the Fed's decision to cut money supply to the economy. The depression was so severe that it spread to other countries of the world. Most people were out of Jobs and a lot committed suicide. Surely CBN Governor and his directors forgot to learn from history while in school.
South Korea was once one of the poorest countries in the World with a Per capita income below $100.South Korea under President Park Chung-hee launched economic and social development plans, and soon the economy began to grow. Today, South Korea in one of the world leaders in exportation of several commodities ranging from auto-mobiles to different types of electronics. So also countries like Argentina and Japan.
CBN should take a cue from this and stop making decisions that will expedite the failure of the economy. The video below is one that the CBN Governor and president Buhari his boss should watch.
I must admit that I agree with you a 100percent. This inflation is as a result of an increase in cost of production, and not excess cash pursuing fewer goods. The regulators of the economy should get their acts together as to the causes and effects rather than trying to use a gun to kill a mosquito.
demzey: Although there is inflation no doubt, bt wen was der ever an increase in money supply. I feel this inflation s nt mainly caused by an increased money supply, bt hoarding of products, high cost of importing dese goods ,derby increasing der prices, also d petty traders in d market, who uses d exchange rate as an excuse to make supernormal profits. Using contractionary monetary policy, to me s not whats best.
Nice analysis, however you can never take away the major cause of inflation which is more money chasing fewer goods.
The previous rates discouraged people investing in banks. With fixed deposits at 2.5 percent and treasury bills for about 180 days at about 6percent as against the 15percent of early last year, people were no longer keen on fixing in banks or lending to government through tbills. This led to Nigerians leaving easy money in accounts which they could readily have access to.
The singular reason for this improved rates is to enable government (through the financial sector) mop up more cash from the economy. The rates make it more attractive to invest more in banks, creating greater liabilities for the banks.
Notice the liquidity ratio was not touched. Liquidity seeks to measure the level of ready cash at a bank's disposal. This was deliberate to still give banks enough threshold to mobilize more cash without being in danger.
This policy is just a ploy to reduce the amount of money in your hands, but the question is;
I once was stopped by a road safety official, and straight he went and started checking my tyre. only for him to tell me that it had expired. I asked him how he knew, and he showed me. Immediately, I went to the the tyre of their hilux van packed by the side of the road and started checking. behold it was expired too... the laggard just dey look me. That's how I knew abt expiry dates.
my sincere thoughts goes out to the family. it is well.
To think I just crossed that toad today and arrived my destination safely. Am eternally grateful Lord for your grace, cos am in no way better than the deceased.
vicky85: Dear Vincent, please, where u placed your Laptop is not proper, cos, its generate hit and this hit can damage your Penis....the sperm and even the hormone system...please get a board and place it on ur balls before the laptop. cheers...