Connect with us

Finance

CBN releases monetary and exchange guidelines for fiscal years 2020-2021

BY David Olalele

Published

on

CBN Governor, Godwin Emefiele
CBN Governor, Godwin Emefiele

The Central Bank of Nigeria (CBN) has declared that it would continue to conduct monetary policy anchored on the Medium-Term Expenditure Framework (MTEF) of the Federal Government, with the objective of achieving price and financial stability.

The CBN explained that it is able to anchor expectations, deliver time consistent policies and react to temporary shocks including those associated with frequent changes in fiscal policy.

The apex disclosed this in a statement released on its official website. Read part of the statement below:

The Central Bank of Nigeria (CBN) in 2020/2021 will continue to conduct monetary policy anchored on the Medium-Term Expenditure Framework (MTEF) of the Federal Government, with the objective of achieving price and financial stability.

The rationale for the aforementioned is that monetary policy impacts its ultimate goal with a lag. In consonance with the MTEF, the CBN is able to anchor expectations, deliver time-consistent policies, and react to temporary shocks including those associated with frequent changes in fiscal policy.

The 2020/2021 Monetary, Credit, Foreign Trade and Exchange Policy Guidelines reviews circulars issued from the 2018/2019 edition till the end December 2019 to cover the period from January 2020 to December 2021.

This document outlines the monetary, credit, foreign trade, and exchange policy guidelines applicable to banks and other financial institutions supervised by the CBN in 2020/2021.

On account of new developments in the domestic and global economies in the period, the guidelines may be fine-tuned by the CBN without Monetary, Credit, Foreign Trade and Exchange Guidelines for Fiscal Years 2020/2021 prior notice.

Such amendments shall be communicated to the relevant institutions/stakeholders in supplementary circulars.

This document is organized in Five Sections. Section One is the introduction. In Section Two, developments in the global and domestic economies in 2019 are reviewed to provide a background to the policy measures in 2020/2021.

The monetary and credit measures are enumerated in Section Three.

In Section Four, the applicable foreign trade and exchange policy measures are presented. Lastly, Section Five discusses consumer protection issues.

The annexures to the guidelines contain prudential guidelines, relevant reporting formats, and referenced circulars. Monetary, Credit, Foreign Trade and Exchange Guidelines for Fiscal Years 2020/20.

You can download full PDF report Here.