The BSP offer banks with liquidity requirements to avail of
rediscounts, discounts, loans and advances.
The
rediscount rate in 1981 was 6 per cent, while the lending rate for agricultural production by the Nigerian Agricultural and Co-operative Bank (NACB) was also 6 per cent.
In February 2009 the central bank's
rediscount rate dropped to a record low of 1.
According to the statement, inflation edged up to just over six per cent in rece nt months, prompting the Central Bank of Gambia (CBG) to raise its
rediscount ra t e by one per cent point (to 15 per cent) in September.
Federal Reserve, the Russian central bank could not lower the
rediscount rate in order to facilitate commercial bank borrowing so that the credit crunch in the economy could be overcome via bank lending to businesses.
In his new role, Jordan Ray will handle business development, sourcing and executing loan sale opportunities, assisting buyers by arranging capital for note purchase positions,
rediscount opportunities, as well as structuring conventional real estate debt and equity.
Indeed, BAM tried to manipulate the monetary base by putting in place indirect intervention instruments (instead of
rediscount techniques) such as 7 days call for tender, 5 days and 24 hours advances, as well as reserve requirement operations.
On the domestic credit side, besides extending its
rediscount policies, the Central Bank has eased on its long-held stiff reserve requirements, in a series of moves that may end up liberating liquidity of more than 5.
128 The best transposed quartet I know is the headline from the trade paper DISCOUNTER INTRODUCES
REDISCOUNT REDUCTIONS.
The Central Bank of Nigeria (CBN) led by governor Charles Soludo, recently introduced a new benchmark Monetary Policy Rate (MPR), set at 10%, replacing the Minimum
Rediscount Rate, which was pegged at 14%.
The original act had stated that Fed Banks were "to furnish an elastic currency," which meant that they would
rediscount commercial paper of member banks that wanted to convert deposits into currency--"form elasticity"--so as to prevent undue change in the total quantity of money.
