control [ad_1]
AN EMPIRICAL STUDY OF THE FOREIGN EXCHANGE RATE PREMIUM IN NIGERIA (1970-2007).
ABSTRACT
This work evaluates the trends in the parallel market exchange rate premium, its determination and impact on the foreign exchange market in Nigeria. It examines the impact of existing demand and supply gaps in the overall foreign exchange market on the determination of the parallel market premium. It further examines the impact of the parallel market exchange rate premium on the determination of the official exchange rate and the parallel market rates. The study uses the stock-flow model of Kiguel and O’connel (1994) to examine the impact of the parallel market exchange rate premium on the determination of the official exchange rate and the parallel market exchange rate. The estimation results reveal that the parallel market exchange rate premium has a significant negative effect on parallel market exchange rate in Nigeria. Thus, an increase in the foreign exchange rate premium tends to reduce the next round of parallel market exchange rate. On the other hand, the parallel market exchange rate premium affects the official exchange rate positively. This is because a high premium on the parallel market exchrange rate tends to increase the demand for foreign exchange at the official rate. The examination of the impact of the demand and supply gaps in the foreign exchange market shows that the coefficient of exchange rate imbalance can be negative or positive depending on whether there is excess demand or supply condition in the market.
This Research Project Material is posted with good intentions. if you own it, and believe that your right is infringed or violated, Please send us a mail – [email protected] and actions will be taken immediately. Thank you.
[ad_2]
Talk to us
Please call 08111770269 or +2348059541956 to place an order or use the whatsapp button below to chat us up.
The Blazingprojects Mobile App
Download and install the Blazingprojects Mobile App from Google Play to enjoy over 50,000 project topics and materials from 73 departments, completely offline (no internet needed) with the project topics updated Monthly, click here to install.
- Contains 50,000 project topics.
- With complete project materials.
- Contains 73 departments.
- Completely offline, No internet needed.
- Updated Monthly with new project topics & departments.
- Easy to navigate and search projects.
- Easily shareable via Xender, Bluetooth, etc.
- Easy project support from inside the App.
- Universities, Polytechnics & Colleges of Education.
Recent Comments