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    (MUST READ) Is "freezing of MMM accounts" related to money scarcity in banks?

    It has become a heart-breaking and sad experience for Nigerians for the past two days due to the absence of money in banks. People who have in one way or the other scheduled the way they would withdraw and spend money this Christmas have been put to disappointment because of this situation.


    Yesterday, I went to bank to withdraw but meet with a very long queue and this was throughout the banks here in Ile Ife.

    The cause of this is still unknown to me. Bit when I looked at it, I came to my notice that this has been so since when MMM accounts had been frozen.

    I tried relating the two functions (as a mathematician would say) and I came up with the following conclusions:

    1.  MMM increases the money in circulation: When people send money to other people who are into  MMM, they collect amounts greater than the one invested in MMM.

    2.  Banks receive bonuses when people who invested in MMM send money to each other. For each transaction, Banks deduct their own bonuses especially when people use internet or mobile banking and this in turn increases money in banks.

    3.  Since MMM ACCOUNTS have been frozen and there has been no transaction from people who have money in MMM, Banks no longer receive the bonuses they receive from every transaction made through Banks.
    And also, note that most people who are into MMM don't have their money in banks anymore, but rather invested it into MMM. Because as most people would say, "money in bank would rather decrease then increase" which is the truth.

    So I think even if MMM is not the sole reason why money is insufficient in banks this Christmas, it is part of it.

    If you have a different opinion, a contribution or any other thing to add, please say in the comment section.

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