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Bullion

Keywords

Monetary policy, Monetary base, Balance sheet, Currency in circulation, Open market operations

Abstract

This paper examines the role of the Central Bank of Nigeria (CBN) analytical balance sheet in the implementation of monetary policy. The Bank currently uses a mix of both quantity-based (monetary base) and price-based (short-term interest rate) nominal anchors. However, irrespective of the targeting regime adopted, both depends on the central bank's ability to manage its balance sheet given the huge fiscal influence on banking system liquidity in Nigeria. Therefore, the paper analyses the various liquidity management operations of the CBN and their implications for the size and structure of the analytical balance sheet.

Author Bio

Mr. Salihu Audu is a staff of Statistics Department of the Central Bank of Nigeria

Publication Title

Bullion

Issue

3

Volume

44

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