Impact of Exchange Rate on Balance of Payments in Nigeria

Nwachukwu Nnamdi

doi:10.52589/AJESD-SDEWBA5E

Impact of Exchange Rate on Balance of Payments in Nigeria | AB Journals

Impact of Exchange Rate on Balance of Payments in Nigeria

African Journal of Economics and Sustainable Development

Vol. 4Issue 22021pp. 104–118Published 31 August 2021

DOI 10.52589/AJESD-SDEWBA5E

2,096Views

673Downloads

Metrics

Share Link

𝕏

Cite this

Citation unavailable for this article.

Abstract:

This study examined the impact of exchange rate on balance of payments in Nigeria. Data for the study which are balance of payments, exchange rate, interest rate, trade openness and crude oil price were extracted from the Central Bank of Nigeria (CBN) statistical bulletin covering the period 1981-2019. The method of data analysis is the Vector Error Correction Mechanism (VECM). The results reveal that there is a positive relationship between balance of payments and exchange rate in Nigeria, exchange rate has significant impact on balance of payments in Nigeria (t-stat = 2.47441) and there is causality relationship between exchange rate fluctuations and balance of payments in Nigeria (p-value = 0.0174 < 0.05). It is therefore the recommendation of this study that the government should encourage make political and industrial peace and stability a top macro-political policy priority.

Keywords:Exchange Rate Balance of Payments and Crude Oil Price

Copyrights

Authors retain copyright in their articles and have unrestricted rights to reuse, republish, archive, share, and distribute their work after publication.
All articles are published open access under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence, which permits use, sharing, adaptation, distribution, and reproduction in any medium or format, including for commercial purposes, provided appropriate credit is given to the original author(s) and source.

Loading…

Disclaimer/Publisher’s Note

The statements, opinions and data contained in this publication are solely those of the author(s) and contributor(s) and not of AB Journals or its editors. AB Journals remains neutral and accepts no responsibility for any injury or damage resulting from ideas, methods, instructions or products referred to in the content.