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The Conduct of Monetary Policy
The Performance of Monetary Policy In 1992
The monetary policy measures adopted in 1992 were designed to improve the overall economic performance, with the specific aim of achieving a moderate increase in the growth of real GDP. It was envisaged that the attainment of a good measure of stability in the domestic and external sectors of the economy would stimulate domestic production and generate new employment opportunities.
The outcome was such that narrow money stock (M1) grew by 66.4 percent surpassing its annual target of 24.3 percent by 36.1 percent. Bank credit to the economy was 73.6 percent as against the 13.2 percent target. Bank credit to government grew by 123.9 percent compared with the target of 7.7 percent. Bank credit to the private sector rose by 30.9 percent as against the 16.0 percent target. The exchange rate depreciated to N19.6609: $1. The GDP grew by 4.1 percent compared with the 4.5 percent target and the inflation rate accelerated to 44.6 percent compared to the 13.0 percent recoded in 1991.