EFFECT OF INTEREST RATE ON EXCHANGE RATE MANAGEMENT IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
Despite the fact that in Nigeria Monetary Policy (Interest rate policy) has been a policy tool for managing the exchange rate, Nigeria has continued to witness depreciating value of its domestic currency in recent times. This cannot be disconnected to the fact that the monetary policy has proved ineffective in managing exchange rate over the period under study. Thus, this study buttress other factors which can possibly enhance the interest rate defense of a currency in Nigeria. These factors; level of capital account openness, and level of corporate debt have not been given emphasis in the literature in terms of studies conducted using Nigerian data on how the exchange rate in Nigeria can be effectively managed or defended using Nigerian data. Therefore, this study examines the effect of interest rate on exchange rate management in Nigeria in the context of capital account liberalisation and corporate debt level. In doing so, this study utilized annual time series data sourced from CBN and WDI from 1981 to 2015 to estimate a Vector Error Correction Model (VECM). The long-run findings show appreciation of the domestic currency, implying that high level of corporate debt and capital account openness alone are notenough to induce capital outflows and hence, depreciate the domestic currency as interest rate rises. However in the short-run increase in interest rate induces depreciation of the domestic currency even though less if the capital account is liberalised and also more if there is high level of corporate debt. Therefore, sequel to the findings of this studyit is recommended that,interest rate policies that aim at increasing the value of the domestic currency must focus on liberalising the capital account as well as ensuring lower leverage ratio (low debt level) in the corporate sector while interest rate is increased to attract investors.
Related Project Materials
AN ANNOUNCEMENT APPLICATION FOR IMPROVING INFORMATION DISSEMINATION
INTRODUCTION
Background to the Study: Information are resources that, when used, would leads to knowledge. Like any resource, it must be...
ASSESSMENT OF KNOWLEDGE, ATTITUDE AND PRACTICE (KAP) OF FAMILY PLANNING AMONG RURAL WOMEN IN KOGI STATE, NIGERIA
ABSTRACT
The purpose of this study was to assess knowledge, attitude and practice (KAP) of family planning among rural women in Kogi stat...
MANPOWER PLANNING AND DEVELOPMENT AS AN EFFECTIVE TOOL FOR ACHIEVING ORGANIZATIONAL GOALS. (A CASE STUDY OF STAR PAPER MILL LTD, ABA)
ABSTRACT
This research focuses on Manpower Planning and Development as an effective fool for Achieving Original Goals, using star paper M...
THE EFFECT OF NPOWER PROGRAMME ON YOUTHS IN NIGERIA
Background of the study
The Nigerian federal government is the one that is financially supporting the N-Power you...
AN INVESTIGATION INTO THE IMPACT OF MULTIPLE TAXATION ON THE ACHIEVEMENT OF SMALL AND MEDIUM SCALE ENTERPRISE
Abstract
This study is on the an investigation into the impact of multiple taxation on the achievement of small and med...
IMPROVING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY THROUGH HUMAN RESOURCES DEVELOPMENT
ABSTRACT:- The broad objective of this study was to evaluate the improving of productivity in the construction in...
AN EVALUATION ON STUDENTS PERCEPTION AND ACADEMIC ACHIEVEMENT IN CHEMISTRY (A CASE STUDY OF SOME SELECTED SECONDARY SCHOOL IN DAWAKIN TOFA LOCAL GOVERNMENT AREA OF KANO STATE)
BACKGROUND OF THE STUDY
Chemistry as a science subject plays a vital role in transforming the environme...
AN ASSESSMENT OF INTERGOVERNMENTAL RELATIONS AND ITS IMPACT ON LOCAL GOVERNMENT ADMINISTRATION
EXCERPT FROM THE STUDY
Intergovernmental Relations is described as a network of institutions at the national, regional,...
UNITED NATIONS SECURITY COUNCIL AND GLOBAL CRISIS MANAGEMENT: A CASE STUDY OF THE UNITED STATES INVASION OF IRAQ, 1991-2008
INTRODUCTION
Evaluation of the Iraq conflict cannot be finished until the roles performed by two key actors—the Un...
PROFITABILITY AND TECHNICAL EFFICIENCY ANALYSIS OF RICE PRODUCTION IN ESAN CENTRAL AND NORTH EAST LOCAL GOVERNMENT AREA OF EDO STATE
ABSTRACT
This research was designed to access the Profitability and Technical Efficiency Analysis of Rice Production in...
