 and the Federal Ministry of Finance have signed a MoU on monetary-fiscal policy coordination.){kind=link}
CBN, Finance Ministry Sign Pact on Policy Coordination
The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance have signed a Memorandum of Understanding on monetary-fiscal policy coordination as part of efforts to strengthen economic stability.
CBN Governor, Mr Olayemi Cardoso, signed on behalf of the apex bank, while the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, signed on behalf of the ministry at the CBN headquarters in Abuja at the weekend.
Speaking at the event, Cardoso said the deal represented a shared commitment to deepen collaboration between both institutions in the interest of the economy.
“Fiscal and monetary policies remain two important and complementary instruments for the management of a modern economy. While fiscal policy influences economic activity through government expenditure, taxation and borrowing decisions, monetary policy promotes price stability and financial system soundness through the management of liquidity, interest rates and monetary conditions. When these policies work in harmony, their combined impact is far greater than their individual efforts,” he said.