( including micro, small - and medium - size enterprises ). these extraordinary measures led to ease domestic financial conditions and have aided to the economic recovery. a second lesson is that in an environment of high uncertainty, like the one associated with the shocks derived from the covid - 19 pandemic, a solid macroeconomic framework, including a prudent and data - based monetary policy approach, and the development of deep and liquid financial markets, are essential. in an uncertain environment, it is vital that central banks continue to ensure that monetary policy decisions contribute to orderly adjustments of relative prices and financial markets 1 / 3 bis central bankers'speeches ( mainly, fx markets and the yield curve ), supporting the recovery of economic activity. a prudent and data - dependent approach, mindful of policy tradeoffs, has been needed. this has allowed for a correction in the fx and for easing financial conditions, as the yield has observed an orderly downward adjustment with lower risk premia ( including inflationary risk premia ). in this context, a key challenge for policy makers, particularly central banks, has been to respond to the crisis in a timely and decisive manner, but without affecting the resilience of both the economy and financial markets. excessive countercyclical monetary policy could lead to increases in risk premia, higher long - term interest rates, and tighter financial conditions, the opposite to the original intention. a third lesson is that well - anchored inflation expectations and credibility in the central bank increases monetary policy ’ s room for maneuver. in contrast to the monetary policy response to previous crisis, such as the financial crisis during the 1990s when most central banks of emes implemented interest rate hikes to prevent exchange rate depreciations, this time monetary authorities were able to reduce their reference rates immediately. this reflects the higher degree of credibility maintained by central banks and how inflation expectations have also remained well - anchored. a fourth lesson is that given the unprecedented crisis, previously estimated economic models and coefficients are not allowing us to accurately forecast the economy and inflation, we have had to be cautious and flexible in our policy responses. for example, we must learn from the fact that we have missed the mark on some aspects of the economy and on inflation dynamics. the latter have been affected by sudden changes in consumption patterns, disruptions on the supply side, adjustments in the labor market, and non - linear effects on prices from exchange rate fluctuations. moreover, it has been extremely difficult to identify the effects of

joseph o sanusi : embracing good corporate governance practices in nigeria keynote address by dr joseph o sanusi, governor of the central bank of nigeria, at the 19th annual directors ’ seminar organised by the financial institutions training centre ( fitc ), abuja, 17 - 19 june 2003. * * * the director general, financial institutions training centre ( fitc ), chairmen and members of board of financial institutions, chief executives of banks, captains of industry, distinguished ladies and gentlemen. i feel deeply honoured to be invited to this important seminar, as the special guest of honour and for the privilege to deliver this keynote address. i should also start by congratulating the financial institutions training centre ( fitc ), which has put this seminar together, for its impressive contribution to capacity building in the financial services sector. the theme for the 2003 annual directors ’ seminar : “ balancing stakeholders interests : issues and challenges ” is quite relevant and timely, given the havoc which poor governance has wreaked on the corporate existence of many institutions and the failure on the part of many banks to uphold the tenets of good corporate governance. moreover, when placed in its proper perspective, the theme of the seminar to my mind, calls for the enhancement of standards and adoption of sound corporate governance practices by banks and their corporate customers. in this context, i will like to congratulate the management of the fitc for coming up with this discourse, which i believe would enhance participants ’ awareness of the various challenges facing the board / management of institutions in the discharge of their statutory responsibilities to their various stakeholders. perhaps, i should observe at this juncture that the role of the fitc in providing quality human development and advisory services to its clientele has not gone unnoticed, which explains the high calibre of participation at this seminar. i will like to urge the management of the institution to sustain and, improve on that legacy that has been the hallmark of the centre so that it will continue to attract top management in its future programmes. judging from its antecedents, i have no doubt in my mind that the fitc have assembled a formidable team of experts to present the seminar papers that would explore the different dimensions of the seminar theme. distinguished participants, let me caution that there is no one single factor that contributes to institutional problems than the lack of effective governance. the issue of good governance is, therefore, an imperative for ensuring successful corporate performance. building good corporate governance is a shared responsibility among all stakeholders,