Regulatory Alerts2025-12-09
NDIC Quarterly Vol 39 No 1&2 2024 – Impact of Monetary Policy on Financial Openness in Nigeria in the First and Second Quarter of 2024
This study conclusively demonstrates that monetary policy significantly influences financial openness in Nigeria, with causality flowing unidirectionally from policy actions to market integration. The Central Bank of Nigeria is urged to balance liquidity growth with inflation control, ensuring money supply supports productive investment rather than speculative inflows, by strengthening monetary transmission and coordinating fiscal policies. Furthermore, effective management of interest rates, exchange rate stability, and initiatives to boost domestic production are crucial to maximize the benefits of financial openness while minimizing associated risks.
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