Document Type

Annual Report

Publication Title

Central Bank Nigeria Annual Report and Statement of Account 2000


This Report reviews the operations of the Central Bank of Nigeria (CBN) and macroeconomic developments during the fiscal year 2000 and appraises the major economic policy outcomes during the period. The bank is responsible for administering the Banks and Other Financial Institutions (BOFI) Act, which aims to ensure high standards of banking practice and financial stability through surveillance activities and the promotion of an efficient payments and clearing system. The bank's major objectives for monetary policy in 2000 were outlined in the Bank's Monetary Policy Circular No. 34. Key policy targets included growth in broad money, narrow money, aggregate bank credit, growth in bank credit to the government, and growth in bank credit to the private sector. The bank's policy measures in 2000 focused on liquidity management, surveillance activities, and the promotion of an efficient payments and clearing system. These measures included adjusting the cost of funds to banks, reducing the flow of credit to the private sector, and repurchase agreements. The bank also implemented measures to improve the efficiency of the clearing system, such as the introduction of the N200 note, currency sorting machines, routine withdrawal of dirty notes, clearing system, and electronic money. In 2000, the external sector policy aimed to stimulate non-oil exports, reduce dependence on oil exports, and maintain a stable balance of payments position. Measures included streamlined the Exchange Market (IFEM), allowing oil and oil service companies to sell their foreign exchange to banks at the prevailing IFEM rate. However, these transactions were executed on private initiatives and carried no government guarantee or obligations. The minimum rediscount rate (MRR) was reviewed downwards, and the transferability of IFEM funds between banks was restored. Agencies and companies were expected to maintain foreign exchange domestic accounts with commercial banks. The CBN continued to undertake developmental functions, ensuring credit accessibility and provision to farmers and small and medium-scale enterprises through the Agricultural Credit Guarantee Scheme Fund, and SME II schemes.

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