Please use this identifier to cite or link to this item: https://library.cbn.gov.ng:8443/jspui/handle/123456789/411
Title: Interest rates behaviour under a programme of financial reform: the Nigerian case
Authors: Oresotu, F.O.
Keywords: Interest rates
Financial reforms
Nigeria
Nigerian economy
Deregulation
Lending rate
Fisher effect
Exchange rate depreciation
Inflation rate
Issue Date: Jun-1992
Publisher: Central Bank of Nigeria, Research Department.
Citation: Oresotu, F. O. (1992). Interest rates behaviour under a programme of financial reform: the Nigerian case, Economic and Financial Review, (EFR), 30(2),109-127
Series/Report no.: Vol. 30;No. 2
Abstract: This paper is an attempt to investigate the determinants of interest rates in Nigeria since the introduction of the deregulatory measures in 1987. Both the external and domestic factors were taken into account since Nigeria cannot be regarded as a closed economy. The major finding of the paper is that the most important factor affecting nominal lending rate in Nigeria is the persistent exchange rate depreciation. The identified channel of causation is the demand for money, especially for transactions purposes, which increases as the exchange rate depreciates, putting pressure on domestic liquidity. Institutional factors also explain a significant proportion of the variations in interest rates. The Fisher effect does not appear to be a major factor in interest rate determination as the expected inflation rate variable was not statistically significant.
URI: http://library.cbn.gov.ng:8092/jspui/handle/123456789/411
ISSN: 1957-2968
Appears in Collections:Economic and Financial Review

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