Foreign exchange, Unholy trinity, Macroeconomic, Monetary policy, Fiscal policy, Price stability


Foreign exchange management is a major component of monetary policy in many central banks in developing and emerging market economies. This is because maintaining price stability is a key mandate of many central banks in ensuring overall macroeconomic stability. An effective exchange rate policy compliments the objectives of monetary policy. The relationship between monetary policy and the exchange rate can be explained in three different channels namely; income channel, price channel and interest rate channel. This are what the article will deliberate on from Nigeria's perspective.

Author Bio

Moses K Tule is the Director, Monetary Policy Department of the Central Bank of Nigeria.

Publication Title

CBN Bullion





Included in

Economics Commons



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