Tag: financial
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The Central Bank of Nigeria (CBN) through its Monetary Policy Committee (MPC)
The Central Bank of Nigeria (CBN) through its Monetary Policy Committee (MPC) has raised the interest rate by 50 basis points to 27.25% following the latest MPC report on Tuesday, 24th of September. Key changes:Commercial banks’ Cash Reserve Ratio (CRR) up by 500bps to 50%Asymmetric corridor now at +500/-100bps.
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The Importance of Diversifying Your Portfolio
Diversification is a fundamental principle of prudent financial planning and a key strategy for managing investment risk. By spreading your investments across various asset classes, sectors, and geographic regions, you can enhance the potential for long-term success while mitigating the impact of poor performance in any single investment. Although diversification does not guarantee profits, it…
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How to Identify and Avoid Common Investment Mistakes
Investing is a powerful tool for wealth accumulation, but it comes with inherent risks that can derail your financial goals if not carefully managed. Recognizing and avoiding common investment mistakes is crucial for navigating the investment landscape effectively. Here’s a guide to identifying these pitfalls and implementing strategies to steer clear of them. Common Investment…
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Exchange Rate Fluctuations and Their Impact on International Businesses
In today’s interconnected global economy, exchange rate fluctuations play a pivotal role in shaping the landscape for international businesses. Companies operating across borders encounter a spectrum of challenges and opportunities as currency values rise and fall. Understanding the nuances of these fluctuations and their implications is essential for navigating the complexities of international trade and…
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3 Ways to Avoid Bad Debt
Debt can be a double-edged sword, if used wisely, it can help you achieve financial goals like buying a home or starting a business. However, bad debt – debt that burdens you with high interest rates and hinders your financial well-being – can be a major roadblock. Here are 3 essential ways to avoid bad…
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How Foreign Exchange Influences Inflation
In finance, every action has a consequence, and forex transactions are no exception. In this article, we will explore the relationship between inflation and the foreign exchange rate of a country. Inflation is one of the many factors that influence a country’s exchange rate. Here’s how inflation typically influences exchange rates: Ultimately, the relationship between…
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How to Achieve Financial Security; Understanding the 80/20 Rule
In finance, time is currency and every move shapes your wealth. This article will explore The 80/20 rule and how it relates to financial planning. The 80/20 rule, also known as the Pareto Principle states that 80% of outcomes result from 20% of causes. It can be applied to identify the most significant factors impacting…
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296th Monetary Policy Committee – MPR Raised by 50 bps from 26.25% to 26.75%
On July 23, 2024, the Central Bank of Nigeria’s Monetary Policy Committee unveiled its latest measures on monetary tightening, aimed at curbing inflation. We’ve outlined the critical decisions and their potential effects. It’s crucial to stay updated on these developments to grasp their impact on our economy and your financial well-being.
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How to manage cash as a Small or Medium Enterprise (SME)
Cash is referred to as Liquidity in business terms, and this liquid is the lifeblood of every business, CASH IS KING. Any business without proper cash management will sooner or later be liquidated. Here’s a comprehensive guide to managing cash effectively as a small and medium-sized business owner. In conclusion, Effective cash management is within…
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A Historical Look at The Nigerian Currency
In the pre-colonial era, various items served as mediums of exchange across different cultures in Nigeria. These included cowries, manilas, beads, bottles, and salt, among others. The issuance of the first major currency in Nigeria occurred following the colonial ordinance of 1880, which introduced the Shillings and Pence as legal tender currency in British West…