Interest rate and exchange rate in nigeria pdf
The same authors considered mone- tary variables such as interest rates, inflations rate, as additional variables to external reserve in exchange rate equation and Department of Banking and Finance, Covenant University Ota, Nigeria GDP deflators, exchange rate, interest rate and money supply, using the Vector Autoregressive Available from http://research.stlouisfed.org/wp/2009/2009-040. pdf. 1 Mar 2013 openness of the economy, government expenditures, interest rate movements as well as the lagged exchange rate are among the major impact of exchange rate volatility on economic growth in Nigeria. over, the growth models posit that low inflation rates, low interest rates and trade openness can enhance https://www.ucl.ac.uk/~uctp39a/Blundell-Bond-1998.pdf. Bollerslev controlled exchange rate (until 1985) to a more liberalized regime from 1986 to the exchange, respectively, thus rendering interest rates and exchange rates less Mobilizing Domestic Resources for Economic Development in Nigeria: The The history of exchange rate systems in Nigeria was dated back then in early 1960. shallow capital market, distortions in interest rate, and weak association
1 Mar 2013 openness of the economy, government expenditures, interest rate movements as well as the lagged exchange rate are among the major
controlled exchange rate (until 1985) to a more liberalized regime from 1986 to the exchange, respectively, thus rendering interest rates and exchange rates less Mobilizing Domestic Resources for Economic Development in Nigeria: The The history of exchange rate systems in Nigeria was dated back then in early 1960. shallow capital market, distortions in interest rate, and weak association In finance, an exchange rate is the rate at which one currency will be exchanged for another. Interest rate level: Interest rates are the cost and profit of borrowing capital. CS1 maint: location (link); ^ The Economist – Guide to the Financial Markets (pdf); ^ "Triennial Central Bank Survey : Foreign(other countries) exchange The Central Bank of Nigeria left its benchmark interest rate unchanged at 13.5% during its January meeting, as widely expected, as it seeks to contain price Interest rate policy in Nigeria is a major instrument of monetary policy with regards to the role it nations, exchange rate also has its effect on the investment. implications arose; need for favorable interest rates, desirable exchange rates The study presents a scope gap since it was conducted in Nigeria whereas the.
Indeed, when the nominal exchange rate is credibly fixed, interest rate parity predicts the equality of domestic and foreign interest rates, adjusted for risk premium
rate, measurement of interest rate, transmission mechanism of interest rate in Nigeria, interest rate regimes in Nigeria, and the relationship between interest rate and other macroeconomic variables. Interest rate is the amount charged on borrowed money, expressed as a percentage of the principal, by a lender to a borrower for the use of money. interest rate will lead to increased savings and hence a positive relationship. It is this view that must have encouraged the Nigerian authorities to abandon administratively fixed interest rates for market determined ones. In the words of Ahmed (2003), deregulated interest rate is believed to be critical for both economic the determinants of exchange rate in nigeria by udoye, rita a. pg/m.sc/ 07/43765 being a research project submitted to the department of economics, university of nigeria, nsukka in partial fulfillment of the requirements for the award of m.sc in economics november, 2009. In 1986, Nigeria interest rate was as low as at 2.5%, it rose to 8.9% (CBN, 1990). Auction markets for government securities were introduced; capital adequacy standards were reviewed upward and the extension of credit based on foreign exchange deposits was banned (Hussainatu; 2008). Naira exchange rate in order to achieve its objective of maintaining price stability because domestic prices (inflation and interest rates) are very responsive to exchange rate fluctuations. There are two main types of exchange rates in Nigeria; official and market exchange rates. The official exchange rate is determined by the Inflation, Interest Rates and Economic Growth in Nigeria positive relationship existed fo r exchange rates and interest rates though not C.C (1988). Interest Rate Policy in Nigeria and its
paper evaluates the determinants of real exchange rates for the Nigerian Naira. exchange rate is the real interest rate differentials between Nigeria and its
4 Apr 2013 An Assessment of Exchange Rate Volatility and Inflation in Nigeria nominal and real exchange rates and also have active interest in their Learn about negative interest rates and the unexpected ways they influence foreign A country's currency exchange rate can reflect its economic prospects. /GEP/GEP2015b/Global-Economic-Prospects-June-2015-Negative-interest- rates.pdf How Falling Oil Prices Caused Foreign Exchange Rate Movement in Nigeria. Indeed, when the nominal exchange rate is credibly fixed, interest rate parity predicts the equality of domestic and foreign interest rates, adjusted for risk premium 16 Mar 2017 volatility and its determinants in Nigeria. The findings revealed that net foreign asset and interest rate have positive and statistically significant Exchange Rate Management in Nigeria Introduction Economic theory, in the quest for simplicity, assumes that the exchange rate is any other price and that it is determined by the forces of demand and supply in a perfectly competitive market and in a world where free international exchange is the rule.
In finance, an exchange rate is the rate at which one currency will be exchanged for another. Interest rate level: Interest rates are the cost and profit of borrowing capital. CS1 maint: location (link); ^ The Economist – Guide to the Financial Markets (pdf); ^ "Triennial Central Bank Survey : Foreign(other countries) exchange
31 Jul 2019 Interest Rate Management and the Nigerian Economy (1986 — 2018). Article Sidebar. Full Article - PDF Review History Interest rate management, exchange rate, monetary policy rate, inflation, gross domestic product, 13 Mar 2019 Nigeria. 1980 to 2010. OLS. Exchange rate volatility has a positive are carried out to ensure the stationarity of the variable of interest. Available online: http:// repec.org/esFEAM04/up.29293.1080736850.pdf (accessed on 7 4 Apr 2013 An Assessment of Exchange Rate Volatility and Inflation in Nigeria nominal and real exchange rates and also have active interest in their Learn about negative interest rates and the unexpected ways they influence foreign A country's currency exchange rate can reflect its economic prospects. /GEP/GEP2015b/Global-Economic-Prospects-June-2015-Negative-interest- rates.pdf How Falling Oil Prices Caused Foreign Exchange Rate Movement in Nigeria.
This study investigated the effect of interest rate on the economic growth of the Nigerian economy. The aim of the study was to determine the effect of inflation rate, exchange rate and deposit interest rates on the gross domestic product of the country. The data for the study was This paper set out to examine the implications of interest rate for savings and investment in Nigeria. It used data obtained from the Central Bank of Nigeria (CBN). Data were analyzed using Pearson’s Correlation Coefficient and regression. Evidence showed interest rate as a poor determinant of savings and investment indicating that bank loans are mostly not used for productive purposes AN ANALYSIS OF INTEREST AND EXCHANGE RATES EFFECT ON THE NIGERIAN ECONOMY: 1975 – 2008 Anthony Ilegbinosa Imoisi1 2 Uzomba Peter Chika Olatunji 3Lekan Moses ABSTRACT The study examines the impact of interest and exchange rates on the Nigerian economy from 1975-2008. Data for the variables were collected from the CBN statistical bulletin.