Describe any five functions of the Central Bank of Nigeria (CBN).

Explanation

Functions of Central Bank of Nigeria:

(i) It is the banker to the various commercial and other banks in the country just like commercial banks are bankers to the public.

(ii) It controls, regulates and supervises commercial and other banks.

(iii) It issues the Nigerian currency and protects the Nigerian gold reserve.

(iv) It is an agent and banker to the Nigerian Government.

(v) The central bank is the lender of last resort. Commercial banks seek help from the Central Bank when they are in financial difficulties.

(vi) It controls the size of money in circulation in the Nigerian economy by instruments such as open market operations, the bank rate, special deposits, etc.

(vii) The central bank manages the national debts.

(viii) It maintains external reserve.

(ix) It manages the foreign exchange of the country.