By Ido ,eme James
The major challenge of monetary policy management is the need to curb excessive monetary expansion in order to ensure the maintenance of domestic price and exchange rate stability. This is with an overall view to increasing aggregate domestic output, measured by the Gross Domestic Product (GDP). Domestic liquidity measured by the broad money stock (M2) is also regulated by the Central Bank of Nigeria (CBN). To achieve these and other related objectives, the CBN relies on monetary and credit policy measures as well as monetary policy instruments such as the Open Market Operations (OMO), Cash Reserve Requirements, Liquidity Ratio, Interest Rate policy, Discount Window Operations, Stabilization Securities and Exchange Rate policy amongst others.