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The Impact of Nigeria's Monetary Policy Rate (MPR) and Cash Reserve Ratio (CRR) on Stock Market Liquidity

This study examines the impact of Nigeria's Monetary Policy Rate (MPR) and Cash Reserve Ratio (CRR) on stock market liquidity from 2010 to 2024, a period marked by significant monetary policy tightening aimed at tackling high inflation and exchange rate volatility. Using an Autoregressive Distributed Lag (ARDL) model with quarterly data, the research explores the relationship between these monetary policy tools and trading volume, a key indicator of stock market liquidity, while controlling for GDP growth. The findings reveal a complex dynamic: the MPR shows a statistically significant positiv…

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    from https://iiardjournals.org/get/WJFIR/VOL. 9 NO. 9 2025/THE IMPACT OF NIGERIAS MONETARY 67-84.pdf