2002-07-23 | TED-AD-34-2004

Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal 2004/2005

In 2002, the Central Bank of Nigeria (CBN) relaxed some monetary policy measures adopted in 2001 due to macroeconomic improvements. The CBN Minimum Rediscount Rate was adjusted downward by 200 basis points, and the required cash reserve ratio for banks that increase lending to the real sector by at least 20% over June 2002 levels will be reduced by 300 basis points. These actions aim to lower the cost of funds for banks and influence a reduction in bank lending rates to the real sector, supporting investment growth. The CBN will continue monitoring macroeconomic developments and financial market conditions closely, adjusting monetary measures as necessary.

Nigeria

Central Bank of Nigeria

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