By Arize Nwobu
IN accordance with how central banks in developing countries should operate, the Central Bank of Nigeria, CBN, is making spirited efforts to promote economic growth through the evolution of various innovative policies spanning various sub-sectors of the economy.
The traditional roles of central banks include acting as bank of issue, banker, agent and advisor to government, custodian of cash reserves and custodian of foreign balances. Others are lender of last resort, clearing house, controller of credit and protection of depositor’s interest.
But central banks in developing countries have wider powers and are expected to operate beyond the normal range to promote economic growth. They are more proactive and frame their policies in such a way that larger quantities of bank credits go to priority areas for the promotion and maintenance of a rising level of production, employment and real income.
This is partly…
Source: Vanguard Newspaper
