Commercial papers are now very common in Nigeria, and the Nigeria Central Bank is partly the reason why this is the case in the banking sector: “Nigerian banks are relying more and more on short -term commercial papers (CPS) to browse the liquidity challenges, because the Nigeria Central Bank (CBN) applies strict liquidity reserve policies deposits. ”.
Yes, it is more expensive for banks to keep your deposits due to the cash reserve ratio (CRR) that the Apex bank prompted to manage some of the country’s monetary problems. Take a look and read what’s going on here.
I used the OA Lawal economy manual in secondary school. I’m not sure he explained CP (he explained “order to order”, and CP is a subset). But today, I want to believe that the popularity of the CP on the Nigerian financial market will make it a key section in any manual of Econd Econ.
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Good people, the market is changing and our highly financialized economy (but not industrialization) has huge niche opportunities. I want young people to think about how to unlock value in this economy. There are enormous developments in the instruments and derivatives to come. It looks exciting and we also invest in the capital market because locally, new species of asset classes can be high. In the fourth quarter, our goal is to hire around 50 to 60 people while we are revealing our new business. I am optimistic in Nigeria and perhaps one of the most committed diasporan investors in the country !!! Lol.
* The commercial document is largely an unsecured short -term debt instrument that companies emit to finance their short -term liabilities that may be payable, accountable for payments and inventories. It helps resolve short -term liquidity challenges.
Nigerian banks fight against the liquidity crisis, turn to expensive commercial documents in the midst of CBN tightening policies
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