PERFORMANCE APPRAISAL OF MONETARY POLICY OF CENTRAL BANK OF NIGERIA
INTRODUCTION TO CHAPTER ONE
I.I BACKGROUND OF THE study
Prior to the creation of the Central Bank of Nigeria, the West African money Board (WACB), formed in 1912, was in charge of creating legal tender money. The WACB was established to encourage export trade financing. WACB was responsible for issuing West African currency. The exchange of existing currencies as well as the investing of reserves.
The reserves were invested in the United Kingdom, which aided Nigeria's international payments. However, because the WACB was linked to the British system, it was unable to engage in monetary management, nor were Nigerians trained in the technique.
To encourage the expansion of the domestic money and capital markets. As a result, this insufficiency is eliminated. The Central Bank of Nigeria was formed in 1958 and began operations on July 1, 1959.
The Nigerian Central Bank formulates monetary proposals in a memorandum that is given to the government via the minister of finance. Taking into account the views and ideas of the banking community, as well as other corporate interest and interested public groups and people.
The Central Bank of Nigeria (CBN) was established by the Central Bank of Nigeria (CBN) ordinance of 1958 (as amended from time to time) to operate as a banker and foreign exchange dealer primarily to the federal government of Nigeria.
1.2 STATEMENT OF THE PROBLEM
The study's major goal is to conduct an evaluation of the Central Bank of Nigeria's monetary policy initiatives from 1980 to 2005. The goal, roles, phases, and evaluation of monetary policy over the relevant era will be discussed.
1.3 OBJECTIVES OF STUDY
The researcher's studies on the performance appraisal of monetary policy of the Central Bank of Nigeria disclose that the study's objectives include the following.
To ascertain how rural residents reacted to central bank services.
To determine the types of customers who use central banks.
To determine whether the loan's availability has reduced the level of rural-urban migration.
To ascertain any additional banking services. The central banks make these available to the public.
To determine the extent to which lending to rural residents has affected unemployment levels.
1.4 significance OF THE STUDY
Although student research in this field is abundant, this work will contribute to the current literature in this area. It would also learn about the performance evaluation of monetary policy.
This initiative would also provide insights to students of banking and finance, as well as individuals who are unfamiliar with the activities, operations, and duties of the Nigerian Central Bank's monetary policy.
Above all, the study's purpose is to point out a favourable route for a smooth functioning of monetary policy.