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Title: DETERMINANT OF EXCHANGE RATE VOLATILITY IN NIGERIAN ECONOMY (1980 - 2017)
Authors: Amadi, Nyechachi N; Monfred, BariborBari; Boma Clement Cookey, Kuluma Beredugo
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1Amadi, Nyechachi N; 2Monfred, BariborBari; 3Boma Clement Cookey, 4Kuluma Beredugo 1,2Department of Economics, Faculty of Social Sciences Ignatius Ajuru University of Education. 3Department of economics, faculty of Social Sciences, University of Port Harcourt. Ignatius Ajuru University, Rumuolomini, Port Harcourt, Nigeria
MLA 8 N, Amadi, Nyechachi, et al. "DETERMINANT OF EXCHANGE RATE VOLATILITY IN NIGERIAN ECONOMY (1980 - 2017)." Int. j. of Social Science and Economic Research, vol. 3, no. 6, June 2018, pp. 2576-2596, ijsser.org/more2018.php?id=176. Accessed 2018. APA N, A., BariborBari, M., Cookey, B., & Beredugo, K. (2018, June). DETERMINANT OF EXCHANGE RATE VOLATILITY IN NIGERIAN ECONOMY (1980 - 2017). Int. j. of Social Science and Economic Research, 3(6), 2576-2596. Retrieved from ijsser.org/more2018.php?id=176 Chicago N, Amadi, Nyechachi, Monfred BariborBari, Boma Clement Cookey, and Kuluma Beredugo. "DETERMINANT OF EXCHANGE RATE VOLATILITY IN NIGERIAN ECONOMY (1980 - 2017)." Int. j. of Social Science and Economic Research 3, no. 6 (June 2018), 2576-2596. Accessed , 2018. ijsser.org/more2018.php?id=176.
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Abstract: The aim of the study is to identify the factors which determine the level and variations in the exchange rate of the Nigerian currency. The study employed secondary data collected mainly from the Central Bank of Nigeria Statistical Bulletin and the World Bank's World Development Indicator (WDI). The Engle-Granger Error Correction Model (ECM) which contains domestic money supply growth rate, inflation, interest rate, openness to trade, international oil price and manufacturing sector performance as the independent variables and exchange rate of naira to the U.S. Dollar as the dependent variable was used as the empirical model. The unit root test result of the variables show that all the variables were 1(1) series and the co-integration results also proved that the variables have a common trend. Estimates from the ECM revealed domestic money supply growth, interest rate level, inflation rate, openness to trade, international oil price and manufacturing sector output are the significant determinants of exchange rate variations in Nigeria economy. It was therefore recommended that the Nigerian government should put in place sound macro-economic policies to improve the performance of these variables in order to reduce volatility in the external value of the domestic currency.

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