 |
Objectives and Targets of Monetary Policy in Nigeria |
In Nigeria, the major objectives of policy are the attainment of price stability and sustainable economic growth.
Associated objectives are those full employment and stable long-term interest rates and real exchange rates. In pursuing these objectives, the CBN recognises the existence of conflicts among objectives necessitating at some point some sort of trade-offs.
The targets of monetary policy are in the case of the CBN are the operational target, the intermediate target and the ultimate targets. The Bank manipulates the operating target (reserve money) over which it has substantial direct control to influence the intermediate target (broad money supply, M2) which in turn impacts on the ultimately or final objective of monetary policy, i.e., inflation and output.
The broad money supply (M2) comprises narrow money (M1) and quasi money while the operating targets, reserve money is made up of currency in circulation and bank deposits with the central bank.
Enjoy this article? Feel free to share your comment, idea or opinion in the comment section
Related Articles
|
Over and Beyond Expectations - Becoming the Exceptional Employee at WorkIf you have read a lot of books, listened to podcasts, or even watched many videos about financial or wealth education, then it is very likely that you would have come across the following statement a couple of times. "You really cannot become rich by being an employee or by doing a 9 to 5 work [Read more]
|
Posted: 4 years ago |
|
Gain Report - Nigeria: Crop updateReport Highlights: Nigeria's grain production this year is up slightly from the average crop of 2010. Farmers increased average and rainfall patterns were near ideal for the growing season. The arrival of the new crop in the market has not brought any respite to poultry producers as grain prices [Read more]
|
Posted: 16 years ago |
|
|
Gain Report - Nigeria: rice trade quarterlyReport Highlights: The Government of Nigeria (GON) has resolved to encourage domestic rice production by restricting rice imports to conserve foreign exchange. Rice importers now import rice from India following the recent reentry of that country into the non-basmati rice trade.
Post:
Lagos
[Read more]
|
Posted: 16 years ago |
Featured Video
Searching for Management Training Courses? Local or International?