An Analytical Assessment of the Determinants of Exchange Rate: An Empirical Evidence from Nigeria Cover Image

An Analytical Assessment of the Determinants of Exchange Rate: An Empirical Evidence from Nigeria
An Analytical Assessment of the Determinants of Exchange Rate: An Empirical Evidence from Nigeria

Author(s): Olajide Clement Jongbo
Subject(s): National Economy, International relations/trade, Financial Markets
Published by: Editura Fundaţiei România de Mâine
Keywords: exchange rate; term of trade; trade restriction; government expenditure; technological process;

Summary/Abstract: The study utilised econometric techniques as data analysis technique and it is indicated that there is no significant relationship between real terms of trade and real exchange rate in Nigeria; there is no significant relationship between real trade restrictions and real exchange rate in Nigeria; there is no significant relationship between technological progress and real exchange rate in Nigeria. However, it is dem onstrated that ther e is a significant relationship between real government expenditure and real exchange rate in Nigeria and there is a significant relationship between nominal exchange rate and real exchange rate in Nigeria. Therefore, the study concluded that, at the long run level, the real variables alone that influences real exchange rate in Nigeria were insignificant. However, real exchange rate in Nigeria was determined by both real and nominal variables are the core fundamentals that determined real exchange rate in Nigeria mostly in the short run. It is therefore recommended that there is need for the monetary authority in Nigeria to create enabling environment that will encourage and attract international trade activities by investing in the infrastructure of the nation.

  • Issue Year: 22/2022
  • Issue No: 1
  • Page Range: 465-487
  • Page Count: 23
  • Language: English