The Determinate Factors of Exchange Rate in Nigeria

Filed in Economics Project Topic by on October 18, 2020

The Determinate Factors of Exchange Rate in Nigeria.

INTRODUCTION

The exchange rate is the rate at which a currency is exchanged for another currency. It is referred to as the ratio at which a unit of currency of one country is expressed in terms of another currency.

According to Jhingan (2004), the exchange rate between the dollar and Nigeria Naira refers to the number of dollars required to purchase a Naira.

The rate is normally determined in the foreign exchange market. The foreign exchange market is a market where currencies of different countries are bought and sold. It is a market where the values of local and foreign currencies are determined.

As noted by Jhingan (2004), the national currencies of all countries are the stock-in-trade of the foreign exchange market, and as such, it is the largest market to be found around the world which functions in every country.

Exchange rate determination issues have been particularly prominent in developing countries in recent years following the introduction of IMF and World Bank stabilization and adjustment policies.

Research Question 

The following research questions posed will examine  to what extent

Money supply determines exchange rate? Interest rate determine exchange rate?

Inflation rate determine exchange rate ? Parallel market premium determine exchange rate?

Objectives of the Study

The general objective of study is to determine the determinate factors of exchange rate in Nigeria. The specific objective are  as follows

To ascertain the extent Money supply determines exchange rate. To investigate the extent Interest rate determine exchange rate.

To investigate how Inflation rate determine exchange rate? To ascertain how Parallel market premium determine exchange rate.

REFERENCES

Olusola Oloba(2013). Australian Journal of Business and Management Research

Arvind ,S.P,and Guilles Seguin (2005) Behavioural finance issues in listing and delisting in the French wine industry; Lesson from the case of grands vin boisset .

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