Nigeria : Strengthening Monetary and Liquidity Management

The 2002 Financial Sector Assessment Program (FSAP) identified considerable problems in containing the upsurge in liquidity in the financial system, partly caused by spending of oil receipts. In the face of persistent excess liquidity in the financial system, the Central Bank of Nigeria (CBN) made numerous adjustments in the monetary policy framework and instruments; however, these had a limited impact on monetary aggregates. A structural excess liquidity is a common feature in oil exporting countries like Nigeria because of sustained large foreign currency inflows. This note reviews the current frameworks for monetary policy and liquidity management and discusses role of selective financial markets in improving liquidity management in Nigeria. It also provides some recommendations to further strengthen the implementation of monetary policy, particularly systemic liquidity management. This note is structured as follows: chapter one gives context and background; chapter two gives monetary policy framework; chapter three presents liquidity forecasting and management; chapter four gives functioning of financial markets and liquidity management; and chapter five gives recommendations.

Bibliographic Details

Main Authors:	International Monetary Fund, World Bank
Format:	Financial Sector Assessment Program (FSAP) biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2013-05
Subjects:	AMOUNT OF COLLATERAL, ASSET MANAGEMENT, ASSETS, AUCTION SYSTEM, AUCTIONS, AUDITS, AVERAGE COSTS, BANK RATE, BANK SUPERVISION, BANKING CRISIS, BANKING SYSTEM, BASIS POINTS, BENCHMARK, BID, BOND, BOND AUCTIONS, BONDS, BROAD MONEY, BUY BACK, CAPITAL INFLOWS, CAPITAL MARKETS, CAPITAL OUTFLOW, CASH FLOW, CASH RESERVE, CASH RESERVE RATIOS, CENTRAL BANK, COLLATERALS, COMMERCIAL BANK, COST OF FUNDS, CREDIBILITY, CREDIT RISK, CREDIT RISKS, CREDIT WORTHINESS, CURRENCY INFLOWS, CURRENT ACCOUNT, DEBT MANAGEMENT, DEPOSIT, DEPOSIT RATE, DEPOSIT RATES, DEPOSITS, DEPRECIATION, DISBURSEMENTS, DOMESTIC BANKS, DOMESTIC DEBT, DOMESTIC LIQUIDITY, DUTCH AUCTION, ECONOMIC POLICY, ELIGIBLE COLLATERAL, EMERGING MARKETS, EQUITY PRICE, EXCESS LIQUIDITY, EXCHANGE RATE, EXCHANGE RATE BAND, EXCHANGE RATE POLICY, EXCHANGE RATE REGIMES, EXCHANGE RATES, EXCHANGE SYSTEM, EXPANSIONARY FISCAL POLICY, EXPENDITURE, EXPENDITURES, FINANCIAL DEVELOPMENTS, FINANCIAL INFRASTRUCTURE, FINANCIAL INTERMEDIATION, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL STABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FISCAL OPERATIONS, FISCAL POLICY, FISCAL RULE, FORECASTS, FOREIGN CURRENCY, FOREIGN EXCHANGE, FOREIGN EXCHANGE INFLOWS, FOREIGN EXCHANGE MARKET, FOREIGN EXCHANGE MARKETS, FOREIGN EXCHANGE POLICY, FOREIGN EXCHANGE RATE, FOREIGN EXCHANGE TRANSACTIONS, FOREIGN EXCHANGES, FORWARD CONTRACTS, GOVERNMENT BONDS, GOVERNMENT DEBT, GOVERNMENT FUNDS, GOVERNMENT SECURITIES, GOVERNMENT SPENDING, IMPORTS, INCOME, INFLATION, INFLATION OBJECTIVE, INFLATION TARGETING, INFLATION TARGETING REGIME, INSTRUMENT, INTEREST RATE, INTEREST RATE SPREAD, INTEREST RATE SPREADS, INTERNATIONAL BANK, INTERNATIONAL MONETARY FUND, INTERNATIONAL RESERVES, ISSUANCE, LEGAL TENDER, LIQUIDITY, LIQUIDITY CONDITIONS, LIQUIDITY MANAGEMENT, LOAN, LOAN RATE, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, MACROECONOMIC STABILITY, MARKET BEHAVIOR, MARKET DEMAND, MARKET DEVELOPMENT, MARKET INTEREST, MARKET INTEREST RATES, MARKET MAKERS, MARKET PARTICIPANTS, MARKET PRICES, MARKET RATE, MARKET SEGMENTATION, MARKET TRANSACTION, MARKET VALUES, MATURITY, MONETARY AGGREGATES, MONETARY AUTHORITIES, MONETARY CONTROL, MONETARY CONTROLS, MONETARY FRAMEWORK, MONETARY FUND, MONETARY POLICY, MONETARY POLICY DECISIONS, MONETARY POLICY FRAMEWORK, MONETARY POLICY IMPLEMENTATION, MONETARY TARGETS, MONETARY TRANSMISSION, MONEY MARKET, MONEY MARKETS, MONEY TARGET, NORMAL PROFIT, NORMAL PROFITS, OIL BOOMS, OIL EXPORTING COUNTRIES, OIL PRICE, OIL PRICES, OIL REVENUE, OIL REVENUES, OPEN MARKET, OPEN MARKET OPERATIONS, OVERHEAD COSTS, PORTFOLIO, PORTFOLIOS, PRICE STABILITY, PRIMARY MARKET, PRIME LENDING RATE, PROFIT RATE, PUBLIC SPENDING, REPAYMENT, REPO, REPO AGREEMENT, REPO FACILITY, RESERVE, RESERVE MONEY, RESERVE REQUIREMENT, RESERVE REQUIREMENTS, RESERVES, RISK PREMIUM, SAVINGS, SETTLEMENT, SHAREHOLDERS, SHORT-TERM INTEREST RATES, SHORT-TERM LIQUIDITY, SHORT-TERM VOLATILITY, SHORTFALL, SHORTFALLS, SOLVENCY, STOCK MARKET, SURPLUS, SURPLUS LIQUIDITY, SWAP, SWAPS, T-BILLS, TAX, TAX REVENUES, TOTAL RESERVES, TRADING, TRANSACTION, TRANSPARENCY, TREASURY, TREASURY BILLS, TREASURY OPERATIONS, USE OF REPOS, VOLATILE ENVIRONMENT, VOLATILITY, VOLATILITY IN EXCHANGE RATE,
Online Access:	http://documents.worldbank.org/curated/en/2013/05/18181394/nigeria-financial-sector-assessment-program http://hdl.handle.net/10986/15961
Tags:	Add Tag No Tags, Be the first to tag this record!