THE ROLE OF CENTRAL BANK IN ESTABLISHING NIGERIA ECONOMY THE ROLE OF CENTRAL BANK IN ESTABLISHING NIGERIA ECONOMY (A CRITICAL REVIEW)

Thesis Overview

<p> </p><p>1.1 INTRODUCTION</p><p>The growth and development of international trade along west African coast played a major role in extending the medium of exchange beyond trade by barter in the nineteenth century.</p><p>The ‘’native currency’’ system which relied on item such as manila, cowries, brass and copper rods had to accommodate foreign currencies such as Maria Theresa dollar and British silver coins increased trade motivated the setting up of the Bank of British West African [BWA] in 1894, thereby drastically reducing the barter system and ushering in a rudimentary form of commercial banking.</p><p>The issue of legal tender currency for the West African region was however deferred till 1912 when the west African currency Board [WACB] was established. The WACB was an offshoot of the recommendation of the EMMOE committee set up by the then secretary of state the Rt. Ifon. Lewis Harcourt. The WACB retained the services of the BBWA as its currency distribution agent. It set up four currency centers in Lagos [Nigeria] and Bathurst, now Banjul [the Gambia].The currency in circulation in West Africa increased steadily through the 1950s in response to the growing demand and increase in the World price for west African primary products such as cocoa, groundnuts and palm oil.</p><p>The WACB, however, did not have discretionary control over the money stock of the territories under the money stock of the territories under its sphere of influence. It was set up primarily to promote the influencing of export trade. Specifically, it was changed with the issue of a west African currency, the repatriation of such currencies and the investment of reserves.</p> <br><p></p>