on the board and top management of banks, especially in the areas of display of professionalism and high ethical standard shall not be compromised. in addition, we will put in place a code of conduct for regulators to ensure that our own staff live up to the high expectation of the nation. meanwhile, the on - going assets ’ quality audit by the cbn and ndic would ensure that appropriate policies are put in place to address identified lapses. it should be emphasized that the determination of the health of banks is a continuous exercise. the cbn on its part will continue to monitor developments in the sector and proffer appropriate policies to ensure that the nigerian banking system remains sound and stable. the decision of the mpc this morning to guarantee inter - bank exposures and pension funds administrators ( pfa ) placements in the banks is aimed at reassuring the market and stabilizing the system while the reform process continues over the next 6 - 9 months. this should stop the current overheating in the system and exert a downward pressure on interest rates. conclusion to conclude, let me reiterate that the conduct and implementation of monetary policy will continue to be dictated by the prevailing domestic economic conditions. thus, the monetary policy framework will continue to be transparent and market - driven using standard monetary policy instruments, like cash reserve requirements, appropriate interest rate policy, open market operations, discount window operations, foreign exchange market intervention, amongst other market - related tools. furthermore, while achieving a low interest rate regime remains the principal target of monetary policy, the determination of interest rate will continue to be flexible and driven by market forces – demand and supply conditions, amongst other factors. similarly, our exchange rate policy will be transparent and dictated by our economic fundamentals while remaining market - driven at all times, but with due cognizance of ensuring that instability does not creep into the various segments of the foreign exchange market. overall, our ultimate goal is to establish a credible monetary policy regime that will facilitate the attainment of our two key mandates of ensuring price and monetary stability and promoting financial soundness and stability, to support government ’ s macroeconomic objectives of high and sustainable economic growth and low unemployment, in the mediumto long - term.

sanusi lamido aminu sanusi : assessment of current development in the nigerian economy and the cbn policy action speech by mr sanusi lamido aminu sanusi, governor of the central bank of nigeria, at the maiden press conference, central bank of nigeria ( cbn ), abuja, 7 july 2009. * * * it is with great pleasure that i welcome you all to my maiden briefing on the activities of the cbn in addressing the challenges faced by the financial sector owing to the downturn in the global economy. i, therefore, take this opportunity to appraise the cbn monetary actions in the recent past and indicate the way forward in the immediate future. as someone just coming from the other side of the aisle of the financial sector ( the regulated ), you will appreciate that my remarks today as a regulator must be viewed as one that is not bereft of the first - hand knowledge of what regulation means. as you are well aware, the primary objective of the cbn is to promote sustainable output and employment while maintaining price stability over time. these goals are not unique to this country. indeed, most central banks pursue the same objectives. the pursuit of these objectives is central to eliminating uncertainties and distortions of high and variable inflation, thereby, providing an economic environment that is conducive to growth. the central bank of nigeria has in recent times pursued these goals by influencing financial conditions, that is, the cost and availability of credit as well as asset prices. the growth performance of the nigerian economy, has until recently, been sustained at a relatively high level due largely to the sustenance of macroeconomic stability – a product of effective conduct of monetary policy, financial sector reforms and relative improvement in fiscal prudence. the current global financial melt - down has weakened growth considerably in the first quarter of 2009 to 4. 85 per cent from 5. 75 per cent estimated for 2008 and projections for the future are not encouraging. to ameliorate the situation, cbn took measures to encourage the flow of credit for productive investment. the mpr was reduced by 175 basic points in april 2009 while the liquidity and cash ratios declined from 30 per cent and 2 per cent to 25 per cent and 1 per cent respectively. as these actions did not seem to have yielded the desired economic outcomes in time, the bank resorted to direct control measures involving interest rate caps and the re - introduction of exchange control measures. the failure of the economy to respond favourably