The Impact Of Exchange Rate Volatility On Nigeria Economic Growth

The Impact Of Exchange Rate Volatility On Nigeria Economic Growth

Preface

This study examined the Impact of Exchange Rate Volatility on Nigeria Economic Growth over the period of 29 times( 1987- 2015). Secondary data source was explored in presenting the data in which all Nigeria’s profitable labors were considered. The secondary data are attained from CBN periodic reports. The model for the study has its dependent variables to be the Real Gross Domestic Product( RGDP), Export and Import and its independent Variable was Exchange Rate, using Retrogression Model Analysis to- test the magnitude of the impact of exchange rate volatility on profitable growth in Nigeria, establish whether there’s a significant relationship between exchange rate volatility and exports in Nigeria and to determine what the effect of exchange rate volatility on significances in Nigeria. The result shows that there’s a positive significant relationship between exchange rate and the Gross Domestic Product, there’s a positive significant relationship between exchange rate and import and there’s a significant positive relationship between exchange rate and import. The study recommended more diversification of the frugality an expansion innon-oil exports, relinquishment of measures to stimulate domestic product, and also encourage import of primary goods in which the country has relative advantage. An expansion in exports means an import- led growth which will in turn affect in advanced import multiplier( rate of the increase in public income performing from an increase in exports to the increase in exports) to enhance the country’s relative advantage with a view to boosting the frugality, an relinquishment of a realistic exchange rate for naira by the authorities which implies that the inordinate demand for foreign exchange should be checked.