THE IMPACT OF MONETARY AND FISCAL POLICIES ON THE NAIRA EXCHAGE RATE BEWTEEN 1990 AND 2009

Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 9

Abstract

This study examines the effect of Monetary and Fiscal Policies on the Naira exchange rate between 1990 and 2009. This is because in recent times, there have been series of debate on the appropriate exchange rate for the Naira and the parameters for determining its exchange rate. What is more, the exchange rate has been declining steadily and the impact of the depreciation ranges from high cost of input into manufacturing process that results in high prices of finished goods. For the purpose of empirical analysis. Naira exchange rate was selected as the dependent variable while the Money Supply (MS), Foreign Exchange Rate (FOREX), Government Expenditure (Govt Exp), Gross Domestic Product (GDP) and Inflation Rate (INFC) were identified as the independent variables. The multiple regression analysis showed that each of the independent variables impacted either positively (+) or negative (-) when measured against the exchange rate and there was a high correlation co-efficient of 0.80 between the dependent and the identified independent variables. In view of the findings, it was recommended that government should proffer an enabling environment/or a good policy mix of instruments and the method of changing policies before the result of the first ones are realized should be discouraged.

Authors and Affiliations

Musa Success Jibrin| Department of Accounting Internationa University, Bamenda, Ifurueze S. Meshack| Department of Accountancy Anambra State University, Igbariam Campus, Success Blessing Ejura| Department of Banking and Finance Kogi State University, Anyigba

Keywords

Related Articles

UNRAVELING THE UNCERTAINTY OF THE NIGER DELTA CRISIS THROUGH TAXATION

This paper critically x-rayed the known causes, consequences and two out of the numerous solutions to the Niger Delta Crisis (NDC). The two solutions implemented by governments in Nigeria in tackling the Niger Delta Cris...

FINANCE-GROWTH NEXUS IN AFRICA: A PANEL GENERALIZED METHOD OF MOMENTS (GMM) ANALYSIS

The paper uses the dynamic GMM Model to examine the finance-growth nexus with panel data (1981-2010) from 24 African countries. Evidence suggests that there is a positive relationship between finance and economic growth...

EXPLORING THE PERSPECTIVES OF CORPORATE GOVERNANCE AND THEORIES ON SUSTAINABILITY RISK MANAGEMENT (SRM)

The motivation of this paper stems from the importance of observing good corporate governance by means of SRM approach to create sustainable value for corporate survival. This study explores the perspectives of corporate...

Insurance Market Activity and Economic Growth: Evidence from Nigeria

The focus of this study is to empirically assess insurance market activities in Nigeria with the view to determining its impact on economic growth. The period of study was 1970- 2008, the study made use of insurance dens...

POLICIES AND EFFECTIVENESS OF FOREIGN AID: THE CASE OF SRI LANKA

This empirical study investigates foreign aid’s effectiveness in stimulating growth by considering economic policies and the factors that influenced aid flow in Sri Lanka during the period of 1980-2008. For both analyses...

Download PDF file
  • EP ID EP1955
  • DOI -
  • Views 396
  • Downloads 50

How To Cite

Musa Success Jibrin, Ifurueze S. Meshack, Success Blessing Ejura (2013). THE IMPACT OF MONETARY AND FISCAL POLICIES ON THE NAIRA EXCHAGE RATE BEWTEEN 1990 AND 2009. Asian Economic and Financial Review, 3(9), 1214-1231. https://europub.co.uk/articles/-A-1955