An Empirical Investigation of the Determinants of Foreign Exchange in Nigeria

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dc.contributor.authorAfolabi, Taofeek Sola
dc.date.accessioned2021-07-19T13:10:18Z
dc.date.available2021-07-19T13:10:18Z
dc.date.issued2018-06-25
dc.description.abstractThe determinants of foreign exchange rate was carried out using time series data from 1986 to 2016.This analysis attempted to find out the casual relationship between external reserves and foreign exchange rate in the Nigerian context by looking at the impact of foreign exchange rate on external reserves from 1986 to 2016 and after the financial crisis. The Nigeria economy is a mono economy where the import is stronger than export making the Nigeria naira irrelevant in the global market. This prompted the researchers to undertake this study so as to establish a linear relationship between external reserves and other variables likely to affect foreign exchange rate. The theoretical framework of production and risk aversion and model specification variables applied in this study may have been overlooked by previous studies. The study found out that the Nigerian external reserves (RS= 0.000139) positively affect foreign exchange rate in a normal economic situation and negatively affect foreign exchange rate in a period of global financial crisis. In the period of global financial crisis, the study recommends that the Nigeria government can increase her export to strengthen her currency so as to make her currency globally competitive. Furthermore, the external reserve is just a backup plan to cushion the effect of financial crisis and international liability in terms of balance of payment problem not as a core determinant of foreign exchange rate in Nigeria.en_US
dc.identifier.citationWilliams, H. T., Adegbola D. D. and Afolabi, T. S. (2018). An Empirical Investigation of the Determinants of Foreign Exchange in Nigeria. Archives of Business Research, 6(6), 54-65en_US
dc.identifier.otherDOI: 10.14738/abr.66.4637.
dc.identifier.urihttp://dspace.run.edu.ng:8080/jspui/handle/123456789/230
dc.language.isoenen_US
dc.publisherSociety for Science and Educationen_US
dc.subjectExternal Reservesen_US
dc.subjectForeign Exchange Rateen_US
dc.subjectFinancial Crisisen_US
dc.subjectRisk Aversionen_US
dc.titleAn Empirical Investigation of the Determinants of Foreign Exchange in Nigeriaen_US
dc.typeArticleen_US
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