MPC REVIEW | NIGERIA | SEPTEMBER 2020
MPC opted for expansionary monetary policy as MPR declined to 12.5% from 13.5% Monetary Policy Committee (MPC) unanimously voted to loosen the Monetary Price Ratio (MPR) by 100bps to 12.5% and also adjusted the asymmetric corridor to +100/-700bps from +200/-500bps, while the committee left other parameters unchanged, including Liquidity Ratio at 30.00% and Credit Reserve…
Abiola AdekunlePortfolio diversification II – Correlation, a Tool in Asset Allocation
Sequel to our last article on portfolio diversification, which was an introduction to portfolio diversification. This week, we take it a step further as we look more in-depth into the math behind portfolio diversification, i.e., using correlation to achieve the objective of portfolio diversification which reduction of systematic risk. How to Check the Correlation between…
What if your Cheque Bounces?
One of the popular forms of collateral, lending companies demand from borrowers is a post-dated cheque. Post-dated cheques serve as one of the most popular forms of security to guarantee the risk of loan default. A post-dated cheque contains the total amount to be paid by the borrower; capital and accrued interest as well as…
adminPortfolio Diversification
Diversification can be neatly summed up as “don’t put all your eggs in one basket”, although this statement provides little guidance on the practical implication of the role diversification plays in an investor’s portfolio and offers no insight into how a diversified portfolio is actually created. The idea is that if one investment loses money,…
Smart Investing for Beginners on a Tight Budget
Investing can seem complicated and overwhelming when it conjures images of the stock market, in reality, there are other opportunities to invest irrespective of your income or age bracket. If you’re living paycheck-to-paycheck, without much room in your budget, you might assume that investing isn’t something you can do right now, but you don’t need…
Fiscal Policy vs. Monetary Policy: Pros & Cons
Fiscal Policy vs. Monetary Policy Fiscal policy and monetary policy are the two tools used by the state to achieve its macroeconomic objectives. To have a stable economy, these two policies must have been effectively managed which are fiscal and monetary policy. Fiscal policy is the use of government spending and tax policies to either…
Inflation Report – June 2020
INFLATION REVIEW | NIGERIA | JUNE 2020 The National Bureau of Statistic (NBS) published the consumer price index (CPI) report for June 2020, which showed inflationary pressure intensified in the months with 16bps increased from the previous month as food prices surged. Nigeria’s headline inflation rose to 12.56% y/y in June from 12.40% y/y recorded…
What are you doing with money?
There are 1001 things you can probably do with money if you were to think about it. There are bills to pay, debts to settle and life to ‘chop’. So why would you be thinking about investing for years in the future when You Only Live Once? But that’s the thing, you only live once so…