EXCHANGE RATE DETERMINATION AND THE NIGERIAN ECONOMY

📄 Project Abstract

This research work is an empirical attempt to examine determinants of exchange rate in Nigeria with annual data from 1980 to 2016. The main type of data used in this study is secondary sourced from central bank of Nigeria statistical bulletin. For this purpose, annual figures of interest rate, inflation rate, balance of payments and gross domestic product were regressed on exchange rate in a framework of multiple regression models; ordinary least square technique at estimation were employed. The evidence from the result revealed that interest rate and real gross domestic product are positive and they have significant impact on exchange rate whereas Inflation rate and balance of payment and are negative and have no significant impact on exchange rate. The work recommends that the government should encourage export promotion and discourage import in order to increasethe gross domestic productand also effective fiscal and monetary policies should be adopted in order to reduce and maintain...