The Conduct of Monetary Policy

The Conduct of Monetary Policy

The Performance of Monetary Policy In 2000
The financial system continued to face the problems of excess liquidity. Broad money (M2) grew by 48.1 percent against the target of 14.6 percent. Narrow money (M1) grew by 62.2 percent against the target of 9.8 percent. The rate of growth of bank credit to the domestic economy was 23.1 percent as against the 27.8 percent target. Credit to the Federal Government was 162.3 percent as against the target of 37.8 percent, while credit to the private sector rose by 30.9 percent as against the target of 21.9 percent. The Inflation rate at 6.9 percent was better than the 9.0 percent targeted for 2000. The rate of growth in GDP at 3.8 percent was higher than the 3.0 percent target. External reserves stood at US$4,460.4 million, while the exchange rate stabilized at N110.05: US$1