As parts of efforts aimed at cushioning the effect of the global financial crisis on the Nigerian economy, the Central Bank of Nigeria (CBN) has announced its plans to float a N200 billion Agriculture bonds in the next couple of months.

Speaking at the second annual Eurofinance conference on treasury, risk and cash management in West Africa, sponsored by Citibank in Lagos, the Deputy Governor, Operations of the CBN, Alhaji Suleiman Barau disclosed that the N200 billion agriculture bond will help in the drive towards the much needed diversification of the economy, thus , reducing the country's over dependence on oil, especially in times of falling oil prices in the international market.

He noted that the decision to float the bond was borne out of the awareness that agriculture plays a major role in the growth and development of the economy and in boosting the country's Gross Domestic Product (GDP).

He said "CBN is strengthening its regulatory activities, and is actively supporting development efforts of the federal government. To this end, " we are considering floating a N200 billion agriculture bonds to help develop the agriculture sector. This is because agriculture plays a major role in the country's economic development, especially in boosting the country's GDP" he noted.

He disclosed that among other policies aimed at cushioning the effect of the global credit crunch, is the apex bank decision to sustain the Monetary Policy Rate (MPR) at 9.75 per cent and provide increased access to credit facilities to banks through the expanded discount window.

He stated that credit to the private sector grew by over 60 per cent in January 2009, due to its provision of N2.2 trillion through the expanded discount window and repayment of Open Market Operations (OMO) bills from September 2008 to January 7, 2009.

According to him, "Credit to private sector grew by over 60 per cent by January 2009. Gross liquidity injection by the CBN through the expanded discount window and repayment of OMO bills from September 2008 to January 2009 stood at N2.2 trillion. This has moderated interest rates in the money market and helped in boosting liquidity."

Speaking in the same vein, Mr. David Cowan, African Economist, Citibank International has harped on the need for the Federal Government to shore up the country's foreign reserve to more than US$100 billion (N14.4 trillion) if it hopes to effectively curtail the impact of the global financial crisis on the country's currency and on the economy in general.

He disclosed that the decline in the naira since November 2008, has brought about a loss of confidence in the country's currency, resulting to an increased demand for foreign currencies as a store of value.He noted that this huge demand has been the major factor militating against the stability of the currency, leading to its continued decline.