Public Sector Deposit Saga- Facts

High powered money is another term for the monetary base-the narrow definition of money

It is defined as the portion of commercial banks’ deposits held with the Central Bank and vault cash held by banks – Wikipedia

It is not the same as money supply, the broader definition of money i.e. M2

In June 1989, the military government ordered that all government agencies transfer their deposits to the CBN

It caused a major financial sector upheaval

 

Source of information: Financial Derivatives Company Limited

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