Monetary policy management has been made difficult by the uncertain global environment, arising from political and economic developments around the w… - Sarah Alade

A number of fiscal and monetary policy options have been deployed to end the recession and the efforts are yielding fruits as the recently released inflation figure shows that inflation is trending down after 15 months stretch of rising price level. The CBN is also working to increase supply of foreign exchange and boost liquidity in the interbank market to ease the scarcity of foreign exchange for the manufacture of goods and increase the level of production. On the part of the fiscal authority, efforts at broadening the revenue base and increasing the collection of taxes have been intensified and are yielding fruits.

The monetary policy of the Central Bank of Nigeria in recent times has continued to focus on achieving price and financial stability for economic growth and development. The persistent inflation in the last one year is an issue of concern.

For Nigeria, like most developing countries, policy has often times focused on the flexible exchange rate regime and financial integration, emphasizing monetary policy independence. However, as globalization, capital flows constraints and other adverse phenomena set in, it has become imperative to seek a convergence.