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CENTRAL BANK OF NIGERIA
MONETARY, CREDIT, FOREIGN TRADE AND EXCHANGE POLICY GUIDELINES FOR FISCAL YEARS 2012/2013
(MONETARY POLICY CIRCULAR NO. 39)
JANUARY, 2012
Monetary, Credit, Foreign Trade and Exchange Guidelines for Fiscal Years 2012/2013
TABLE OF CONTENTS
1.0 2.0 INTRODUCTION REVIEW OF POLICY ENVIRONMENT AND MACROECONOMIC DEVELOPMENTS IN 2011 2.1 2.2 2.3 Policy Environment Macroeconomic Developments Outstanding Policy and Macroeconomic Issues in 2010/2011 2.3.1 2.3.2 2.4 Policy Challenges Macroeconomic Issues 1
2 2 3 8 8 8 10
Outlook for the Domestic Economy in 2012/2013
3.0
MONETARY AND CREDIT POLICY MEASURES IN 2012/2013 3.1 3.2 Objectives and Strategy of Policy Policy Measures 3.2.1 Open Market Operations 3.2.2 Reserve Requirements 3.2.2.1 Cash Reserve Ratio (CRR) 3.2.2.2 Liquidity Ratio (LR) 3.2.3 Discount Window Operations 3.2.4 Interest Rate Policy 3.2.5 Remittance of Value Added Tax (VAT), Custom Duties and Other Collections 3.2.6 Framework for Determining Banks’ Cost of Funds 3.2.7 Framework for the Implementation of Risk-Based Interest Pricing Model 3.2.8 Federal Government of Nigeria (FGN) Bonds and Nigerian Treasury Bills (NTBs)
Central Bank of Nigeria | January 2012
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Monetary, Credit, Foreign Trade and Exchange Guidelines for Fiscal Years 2012/2013
3.2.9 Maintenance of Savings and Current Accounts 3.2.10 Ways and Means Advances 3.2.11 The Payments System (i) Promoting a Cashless Society, use of Cheques and e-Money (a) The Nigerian Cheque Printers Accreditation Scheme (NICPAS) (b) Cheque Clearing (c) Cash Deposit/Withdrawal Limits (d) Maximum Limit on Cheque Payments (ii) Electronic Payments (iii) CBN Inter-bank Funds Transfer System (CIFTS) Operations (iv) Settlement and Clearing Banks (v) Card Security 3.2.12 Publication of Financial Statements 3.2.13 Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria 3.2.14 Other Policy Measures
MONETARY, CREDIT, FOREIGN TRADE AND EXCHANGE POLICY GUIDELINES FOR FISCAL YEARS 2012/2013
(MONETARY POLICY CIRCULAR NO. 39)
JANUARY, 2012
Monetary, Credit, Foreign Trade and Exchange Guidelines for Fiscal Years 2012/2013
TABLE OF CONTENTS
1.0 2.0 INTRODUCTION REVIEW OF POLICY ENVIRONMENT AND MACROECONOMIC DEVELOPMENTS IN 2011 2.1 2.2 2.3 Policy Environment Macroeconomic Developments Outstanding Policy and Macroeconomic Issues in 2010/2011 2.3.1 2.3.2 2.4 Policy Challenges Macroeconomic Issues 1
2 2 3 8 8 8 10
Outlook for the Domestic Economy in 2012/2013
3.0
MONETARY AND CREDIT POLICY MEASURES IN 2012/2013 3.1 3.2 Objectives and Strategy of Policy Policy Measures 3.2.1 Open Market Operations 3.2.2 Reserve Requirements 3.2.2.1 Cash Reserve Ratio (CRR) 3.2.2.2 Liquidity Ratio (LR) 3.2.3 Discount Window Operations 3.2.4 Interest Rate Policy 3.2.5 Remittance of Value Added Tax (VAT), Custom Duties and Other Collections 3.2.6 Framework for Determining Banks’ Cost of Funds 3.2.7 Framework for the Implementation of Risk-Based Interest Pricing Model 3.2.8 Federal Government of Nigeria (FGN) Bonds and Nigerian Treasury Bills (NTBs)
Central Bank of Nigeria | January 2012
12 12 12 13 14 14 14 15 15
18 18
19
19 i
Monetary, Credit, Foreign Trade and Exchange Guidelines for Fiscal Years 2012/2013
3.2.9 Maintenance of Savings and Current Accounts 3.2.10 Ways and Means Advances 3.2.11 The Payments System (i) Promoting a Cashless Society, use of Cheques and e-Money (a) The Nigerian Cheque Printers Accreditation Scheme (NICPAS) (b) Cheque Clearing (c) Cash Deposit/Withdrawal Limits (d) Maximum Limit on Cheque Payments (ii) Electronic Payments (iii) CBN Inter-bank Funds Transfer System (CIFTS) Operations (iv) Settlement and Clearing Banks (v) Card Security 3.2.12 Publication of Financial Statements 3.2.13 Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria 3.2.14 Other Policy Measures