Economic and Financial Review


Central Bank of Nigeria


Interest rates, Credit, Monetary policy


The paper aimed to construct a monetary conditions index (MCI) for Nigeria to aid the evaluation of the stance of monetary policy. Quarterly data for 91-day treasury bill rate (TBR), real exchange rate (RER), inflation rate (INF), real private sector credit (RCP), and real gross domestic product (RGDP), covering the period 2000Q1 to 2014Q1, were utilised. The period coincided with key reforms in the money and foreign exchange markets, culminating in the adoption of a new monetary policy framework in 2006. Following some econometric diagnostic tests, an aggregate demand function was estimated using the Johansen co-integration technique.





Recommended Citation

Tule, M. K. et al (2014). Nigeria's monetary conditions index. CBN Economic and Financial Review, 52(3), 1-26.



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