PROPOSAL: Central bank is generally known to be concerned with the maintenance of monetary stability. This task will involves the regulations of money in circulation consistent with excessive growth is money supply rates to high Rates of spending on domestic or foreign goods. This research will be carried out through oral interviews. Questionnaires will also be distributed in collecting data and information. analysis will be done on the data base on the testing and proofing of hypothesis. Secondary data will also be source by the researcher; and they include journals, magazines, textbooks, periodicals etc.The researcher as a student will experience many difficulties in the cause of collecting data which will include;
One of the strategies of achieving this objectives is through the adoption of the liquidity management policies / techniques which afford the CBN the use of monetary policy instrument to influence bank reserve and the growth in money supply. Also the government should grant of relief granting of loans for the establishment of industries and importation of raw materials on concessionaire import duties.
ABSTRACT
Central banks are general known to be concerned with the maintenance of monetary stability. This task involves the regulation of money in circulation consistent with the absorphic capacity of the economy axiomatically, excessive growth in money supply rates to high rates of spending on domestic or foreign goods given that domestic supply of goods and services in essentially in elastic in the short run, excess liquidity is likely to result in substantial inflationary is likely to result in substantial inflationary pressures in the economy. To the extent that spending pressures are directed towards foreign goods or (assets0 balance of payment pressures will ensure. Thus, the task of monetary authorities is to ensure that the growth in the domestic liquidity is consistent with the objectives of out-put growth, inflation and the balance of payments. This at any given time the CBN would ensure that supply of money is sufficiently optimal to sustain non-inflationary out-put rate and exchange rate stability.
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