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
IMPACT OF ADULT EDUCATION ON FAMILY DYNAMICS
Abstract: The impact of adult education on family dynamics was examined to determine how adult learning influences familial relationships and...
EVALUATION OF THE PROBLEM ASSOCIATED WITH THE MANAGEMENT OF INDUSTRIAL CLUSTERS IN IMO STATE; CASE STUDY OF NAZE INDUSTRIAL CLUSTER
Background of the study
Industrial clusters have been recognized globally as a critical engine for econ...
PROFESSIONAL ETHICS IN SECRETARIAL PRACTICE AND THE LEVEL OF JOB PERFORMANCE OF SECRETARIES
ABSTRACT
This research project was carried out using The Polytechnic Ibadan, Adeseun Ogundoyin Campus,...
THE IMPACT OF COST CONTROL STRATEGIES FOR RETAIL AND E-COMMERCE BUSINESSES
Abstract: THE IMPACT OF COST CONTROL STRATEGIES FOR RETAIL AND E-COMMERCE BUSINESSES
This study investigates the impact of cost control s...
INFLUENCE OF ADVERTISING MESSAGES ON CARITAS UNIVERSITY UNDERGRADUATES’ PATRONAGE OF GOODMORNING CORNFLAKES\
Abstract
The main purpose of this study is to find out the influence of advertising on Caritas University undergraduates´ patronage...
THE IMPACT OF MICRO FINANCING ON THE PERFORMANCE OF WOMEN ENTREPRENEURS
ABSTRACT
This study was carried out to the impact of micro financing on the performance of women e...
EXAMINING THE ROLE OF EARLY CHILDHOOD EDUCATION IN SUPPORTING CHILDREN WITH ADHD
ABSTRACT: This study Examined the Role of Early Childhood Education in Supporting Children with Attention De...
CRITICAL EXAMINATION OF THE USE OF SOCIAL MEDIA AND MASS MEDIA IN THE CAMPAIGN AGAINST THE SPREAD OF CORONA VIRUS DISEASE
ABSTRACT
This study examined the use of social media and mass media in the campaign against the spread...
EFFECT OF INSTRUCTIONAL MATERIALS ON STUDENTS’ PERFORMANCE IN HAUSA LANGUAGE IN SENIOR SECONDARY SCHOOLS IN KADUNA STATE, NIGERIA
ABSTRACT
This study investigated the Effect of Instructional Materials on students‟ performance in Hausa Language in senior secondary sch...
HEPATITIS C VIRUS AMONG PREGNANT WOMENPEOPLE LIVING WITH HIVAIDS ATTENDING CLINIC AT UNTH ITUKUOZALLA
ABSTRACT
A total of 50 blood (30 pregnant and 20 HIV) samples were obtained from pregnant women and PLWHA attending clinic at UNTH Ituku-...
