Role of money market in economic development of nigeria

Hypothesis II H0: There is no significant relationship between money market instruments and the development of the Nigerian financial system. The observed sub-optimality of the Nigerian money market is blamed, in part, on the poor performance of discount houses and other money market institutions.

problems of money market in nigeria

In view of this, the research study therefore sets out to assess the Nigerian money market in the economic development of Nigeria: challenges and prospects.

Infact, money market is a loose network of dealers, bankers and treasures of public and private corporations talking in very large round numbers over telephone and personal contacts.

Discuss the role of nigerian money market to the nigeria banking industry

Bakare, I. The F-ratios of The bank and other financial sectors of the economy will be well guided in the effect of the money market to the development of the Nigeria economy. The financial market is segmented into two: one is the money market, which deals in short term funds and the other, the capital market that is for long—term dealings in loanable funds Bakare and Awotundun, ; Ekmekcioglu, ; Dabwor, ; Anyanwu, Objectives of the study The main objective of this study is examine the operations and activities of Nigerian Money Market. The banking system and the money market represent the exclusive setting monetary policy operates in. This calls for policy options that would favor the encouragement of existing houses and licensing of new ones to adequately carter for the needs of the overall economy. Suggested Citation Anochie Uzoma C.

The securities of money market incorporates certificates of deposit that are negotiable, U. As a section of the financial market, it is made up of financial organization and dealers. The resultant linear regression models were estimated and analyzed below.

Impact of money market on economic growth

In keeping with the above, the Government and the Central Bank should endeavor to license more discount houses since their operations are beneficial to the country. The resultant linear regression models were estimated and analyzed below. Scope of the study The economy is a large component with lot of diverse and sometimes complex parts; this research work will only look at a particular part of the economy the financial sector. This is achieved by issuing treasury related bills for the purpose of raising short loans. Does this suggest that these institutions, alongside others, have failed in their critical duty to the economy? The opearational Houses and the authorities should also endeavor to awake the consciousness of the investing and the business public to proper usage of the facilities and services provided by discount houses. Total funds available amounted to N Plan of the Study This study shall be divided into five chapters. Helps in implementation of monetary policies. This was It also requires that there are different varieties of securities to ensure that there is always alternative other options investment instrument available to be able to satisfy the respective return and risk of investors. Discount houses operating in Nigeria affect the Nigerian economy both positively and significantly.

European Journal of Humanities and Social Sciences. Therefore, there is the need to examine this crucial market and evaluate its performance in terms of its contribution to economic development.

What important role does money play in nigeria economy

Jos Journal of Economics. Since the money market is yet to achieve this objective, can we then say that the discount houses have failed in their expected duties? Baridam, D. Relative to their performance in , they recorded significant growth in Ochei, A. Statement of the problem The role of the financial market in the development of the real sector and the economy at large cannot be over-emphasized Kehinde and Adejuwon, It is, therefore, main purpose of this study to analyze the operational performance of discount houses in a bid to see how they relate with the general performance of the money market and the macro economy.

The research recommends that the Central Bank of Nigeria should step up the improvement of the money market through reduction of interest rates and provision of funds for small and medium scale enterprises in Nigeria.

Even in a developed country like America for instance, one cannot find in the same physical sense can find the flea market and farmers market Paris and loss ageless respectively.

The role of money market in economic development of nigeria pdf

Therefore, there is the need to examine this crucial market and evaluate its performance in terms of its contribution to economic development. Does this suggest that these institutions, alongside others, have failed in their critical duty to the economy? CBN Press. Therefore, a deep and broad market which is very efficient in information and operations including an adequate regulation and more liquidity will contribute to the development of the Nigerian economy. Presently, the notice is put out on Wednesday. This could also improve the clientele level of the operating discount houses in the economy. Introduction It has been underscored that discount houses play very important roles in stimulating investments in the economy and in boosting the general operations of the money market. Performance of Discount Houses in Nigeria Since inception, the discount houses have especially increased the level of activity in the secondary market for government securities. The heart of activity in the money market occurs in the dealing rooms of discount houses and banks. Enefaa Abstract This paper investigates the relationships subsisting between the operations of discount houses and the performance indices of the money market and the general economy. Thus, there is a statistically significant relationship between discount houses operations and money market performance in Nigeria.
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THE ROLE OF MONEY MARKET IN THE NIGERIAN ECONOMY.