ROLE OF THE CENTRAL BANK OF NIGERIA IN THE DEVELOPMENT OF MONEY MARKET
TABLE OF CONTENTS
1.1 HISTORICAL BACK GROUND
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 SCOPE AND LIMITAITON OF THE STUDY
1.5 SIGNIFICANCE OF THE STUDY
1.6 DEFINITION OF ITEM
- LITERATURE REVIEW
2.1 DEFINITION OF CENTRAL BANK IN NIGERIA
2.2 DEFINITION OF MONEY MARKET
2.3 OBJECTIVE OF CENTRAL BANK OF NIGEIRA
2.4 FUNCTION OF CENTRAL BANK OF MONEY MARKET
2.7 TUTORICAL REVIEW
2.8 EMPERICAL REVIEW
1.1 HISTORICAL BACGROUND
The Central Bank of Nigeria was established because of the anracteristic and difficult of the monetary system, which proceeded it.
Also the development of indigenous banking and growth in the financial mechanism could not be achieved without the assistance of a central bank institution west African currency board which was established to finance the need of the expert trade of repatriate fixing in west African for the objective of issuing a spade convertibility a currency providing ream where by the colonial government might share in the profit of the currency was not impendent currency with Nigeria currency was tied on the spoon string of the British bound. It has no room for monetary management.
According to professor W. O. Ugoaga in his book tilled “money and banking in Nigeria”, the system was operationally right and institutionally limited it result that the board lacked any power to initiate and execute monetary policy. It also did nothing to train African in the art of monetary management or to develop indigenous banking and other financial institution which resulted that west African currency board had no discretionary power over the total amount of money and could not perform any banking functions.
The effects were that banking habit in the country was not develop.
Demand deposit constituted less than half the size of the currency e.g. nearly half of the deposited were held by government organization for the indigenous sector banking was even less significant because an over whelming part of deposit was held by Europeans and Europeans firms. No local investments out less were developed because it invested all its reserves in starting over sea in London.