Exchange rate and inflation in nigeria pdf
Inflation, Interest Rates and Economic Growth in Nigeria 2009 to achieve inflation threshold in Nigeria. Applying a exchange rate and also a unidirectional causalit y r unning from Exchange rate is the price of the currency of one country expressed in terms of the currency of another. For example, the Nigeria Naira has exchange rate against the U.S. dollar and many other currencies. It may be expressed as nominal exchange rate or real exchange rate. In 1995, inflation rate rose to 72.8% due to increased lending rate, the policy of guided deregulation and the lagged impact of fiscal indiscipline. In addition to her contemporary fiscal and monetary policies, the Nigerian government had implemented various other policies aimed at curbing inflation in the country. exchange rate on economic growth in Nigeria over a period of 28 years (1986 – 2013). Empirical Review Of Exchange Rate And Economic Growth Exchange rate is the price of one country’s currency in relation to another country. It is the required amount of units of a currency that can buy another amount of units of another currency. Such an increase in prices is regarded safe and essential for economic growth. 2. Walking inflation: This occurs when prices rise moderately and annual inflation rate is a single digit. This happens when the rate of rise in prices is in the intermediate range of 3 to less than 10 percent. quantitative effects of exchange rate depreciation on budget deficit and inflation in Nigeria. This is achieved in two stages. First, a structural model of the interaction between exchange rate, budget deficit, inflation, and government revenue and expenditure is constructed. In doing this, we are influenced by 120 The dynamics of money supply, exchange rate and inflation in Nigeria survey of literature in section two; section three is on a review of monetary and exchange rate policies in Nigeria. While section four describes the methodology of research, section five is on results, policy implications and conclusion.
is associated with high oil price, low money growth, high exchange rate, and low the impact of exchange rate depreciation on inflation in Nigeria for the period
This development shows that the depreciation of the naira has a role to play in Nigeria's recent inflationary process. Concomitant with this is the substantial budget Using historical data on Nigeria (1971-2010), the paper established asignificant short-run and long runpositive relationship between inflation and exchange rate. does the real exchange rate determine inflationary trends in the. Nigerian economy? and (iv) how does interest rate determine the inflation rate in Nigeria? This some information about inflation, exchange rate and domestic debt may be more useful in predicting inflation in Nigeria. A number of policy implications emerge 1 Journal of Monetary And Economic Integration EXCHANGE RATE REGIMES AND INFLATION PERFORMANCE IN NIGERIA Musibau Adetunji Babatunde This paper analyses the post SAP persistence of inflation in Nigeria for the period , Keywords: Monetary policy; Exchange rate; Inflation; Money Growth; Nigeria decomposition. ftp://ftp.zew.de/pub/zew-docs/dp/dp08065.pdf, Discussion.
This development shows that the depreciation of the naira has a role to play in Nigeria's recent inflationary process. Concomitant with this is the substantial budget
13 Apr 2015 relationship between monetary growth, exchange rate and inflation in Nigeria, Exchange rate also had significant negative effect on inflation (t Exchange Rate and Inflation in Nigeria (1986-2004) by Alfred.pdf (31.95Kb) 29 Mar 2018 Apart from other internal factors, the reason for rising inflation in Nigeria can be attributed to volatility in oil prices and exchange rates. 25 Jun 2019 The rate of inflation in a country can have a major impact on the value of the country's currency and the rates of foreign exchange it has with the industrialized economies. The study found the rate of pass-through to be . CBN Journal of Applied Statistics Vol. 7 No. 1(a) (June, 2016) Exchange Rate Pass-Through to Inflation in Nigeria Bada ) = + 1 ) + + ) ) = + + ) + ) ∆ + + + + Exchange Rate Pass-Through flexible exchange rate regime to capture the impact of exchange rate depreciation on inflation in Nigeria. The relevance of this action rests on the fact that, with the introduction of SAP, there was a shift from the hitherto managed exchange rate regime to a market based system which resulted in a substantial depreciation of the OUTPUT, INFLATION, AND EXCHANGE RATE IN DEVELOPING COUNTRIES: AN APPLICATION TO NIGERIA A. F. ODUSOLA A. E. AKINLO I. INTRODUCTION U NDERSTANDING the sources of fluctuations in output and inflation is an im portant challenge to empirical macroeconomists. It is an issue taken up in
between Exchange Rate and the Balance of Payment position of the Nigerian investment, inflation rate and interest rate which will directly and indirectly affect
Using historical data on Nigeria (1971-2010), the paper established asignificant short-run and long runpositive relationship between inflation and exchange rate. does the real exchange rate determine inflationary trends in the. Nigerian economy? and (iv) how does interest rate determine the inflation rate in Nigeria? This some information about inflation, exchange rate and domestic debt may be more useful in predicting inflation in Nigeria. A number of policy implications emerge
Also, markets anticipate future inflation. If they see a policy likely to cause inflation (e.g. cutting interest rates) then they will tend to sell that currency causing it to fall in anticipation of the inflation. How the exchange rate affects inflation. If there is a depreciation in the exchange rate, it is likely to cause inflation to increase.
This paper examines the exchange rate pass-through effect at the aggregate level into import and consumer prices in. Nigeria for the period 1995Q1 – 2015Q1. 30 Jul 2011 This implies that exchange rate depreciation can bring about an increase in inflation rate in Nigeria. The paper also found that inflationary rate in This paper presents a macroeconomic model of the Nigerian economy. The long- run relationships pertaining to the markets for money, foreign exchange, and ( non 13 Mar 2019 Their finding was that interest rate, exchange rate, money supply and oil price are the major causes of inflation in Nigeria. That the money
1 Journal of Monetary And Economic Integration EXCHANGE RATE REGIMES AND INFLATION PERFORMANCE IN NIGERIA Musibau Adetunji Babatunde This paper analyses the post SAP persistence of inflation in Nigeria for the period , Keywords: Monetary policy; Exchange rate; Inflation; Money Growth; Nigeria decomposition. ftp://ftp.zew.de/pub/zew-docs/dp/dp08065.pdf, Discussion. Effect of Inflation on the Growth and Development of the Nigerian Economy (An payments or supply side factors, relate to the effects of exchange rate The paper investigates the impact of change in external reserve positions of Nigeria on domestic investment, inflation rate and exchange rate. Using a 28 Aug 2019 Abstract This paper revisits the exchange rate pass‐through (ERPT) to inflation in Nigeria and South Africa by incorporating structural breaks management on the problem of inflation in Nigeria. Monthly data spanning from January 2010 to October 2016 on inflation rate, interest rate, exchange rate and negative relationship with inflation, while lagged of exchange rate Nigeria needs to reduce money supply growth, improve GDP, reduce interest rate and.