EXCHANGE RATE

This study examines the effect of exchange rate volatility and macroeconomic variable instability on foreign portfolio investment in Nigeria. The data for this study was collected from World Bank Economic Indicator database and the Nigerian Security and Exchange commission Statistical Bulletin covering 1981 to 2024. The longitudinal research design was adopted by this study. The dynamic least sqaures regression technique was utiized and the E-view 9.0 econometric software was used for the
analysis. This study found that exchange rate volatility, growth in gross domestic product negatively and signficantly affect forign portfolio investement, while inflation rate and interest rate positively and significantly infleunce forign portfolio investement. The study recommend among others that the Nigerian government, particularly the Central Bank of Nigeria should intensify effort gear towards stabilizing exchange rate; and that government should deepen current reforms directed at reducing general price level (inflation), as doing so will stimulate foreign portfolio investment inflows into the country

This study investigates the impact of foreign direct investment (FDI) on economic growth in Nigeria from 1981 to 2023, employing the Autoregressive Distributed Lag (ARDL) modeling approach. The study incorporates GDP growth rate as the dependent variable and FDI, interest rate, exchange rate, and inflation rate as explanatory variables. Descriptive statistics reveal moderate variability among the variables, while correlation analysis indicates a positive association between GDP growth and FDI, and a negative relationship with inflation. Unit root tests confirm that all variables are stationary at first difference, satisfying the preconditions for ARDL estimation. The ARDL bounds test results establish the existence of a long-run equilibrium relationship among the variables. Short-run dynamics show that FDI has both positive and negative effects on GDP growth across lags, suggesting that the impact of investment inflows is time-dependent. Exchange rate depreciation exerts a significant negative influence on economic growth, while inflation exhibits mixed effects depending on lag structure. The long-run estimates reveal that FDI, interest rate, exchange rate, and inflation have negative but statistically insignificant impacts on GDP growth, implying limited long-term contribution to growth within the study period. Diagnostic tests confirm the absence of heteroskedasticity and autocorrelation, validating the robustness of the model. The study concludes that FDI, though influential in the short run, does not significantly drive long-term growth unless supported by stable macroeconomic conditions. It recommends that policymakers enhance the investment climate, ensure exchange rate stability, and implement consistent macroeconomic policies to attract productive FDI and sustain economic growth in Nigeria.

This study examines the relationship between exchange rate fluctuations and Nigeria's export performance with the overarching objective of assessing their impact on the country's economic development. The research aims to determine the extent to which exchange rate changes influence total exports and, consequently, the overall economic growth of Nigeria. Employing secondary data from the statistical Bulletin of the Central Bank of Nigeria, the analysis focuses on the relationship between exchange rates(EXR), interest rates(INT), inflation rates(INF), and trade balance(EX) as independent variables, and the GDP as the dependent variable. The findings reveal that inflation rates negatively affect GDP, while interest rates have a positive impact. Exchange rate volatility exhibits a negative correlation with GDP growth. The study concludes that exchange rate fluctuations significantly influence Nigeria’s economic performance, particularly its production capacity. Therefore, the implementation of an effective exchange rate regime is imperative. Such a regime would mitigate inflationary pressures enhance Nigeria’s balance of trade and bolster its production capabilities, ultimately fostering positive economic growth

The study examined the impact of exchange rate depreciation and agricultural output on the agricultural exports of Nigeria (1981-2020). Error Correction mechanism was adopted to examine the relationship among the variables in the study that is the relationship between the dependent and independent variables. The variables were also found to have an overall significant effect on Nigerian agricultural export from the F-statistic obtained in the model. The study found that the level of agricultural output has a positive and significant impact on economic growth in both short run and long run. Also, the study found that exchange rate has a negative and significant impact on economic growth in both short run and long run. Also, the study found that level of import has a negative and significant impact on agricultural export in the short run and long run. Also, the study found that real interest rate has a negative and non significant impact on agricultural export in both short run and long run. Finally, the study found that investment has a positive and significant impact on agricultural export in both long and short run. Therefore, the study recommends that government should provide basic amenities like electricity in order to enhance storage of agricultural produce which in turn boosts output. Also the government should adjust trade exchange rate policies to favor farmers as this would encourage farmers to increase their output and in turn increase exportation.

This project examines the intricate relationship between interest rates, exchange rates, and their combined effect on the profitability of financial institutions, with a primary focus on banks. The study employs comprehensive data analysis and regression models to evaluate how fluctuations in interest rates and exchange rates influence the financial performance of banks. It also investigates the strategies and risk management techniques employed by banks to navigate these dynamic economic variables. The findings of this research contribute to a better understanding of the challenges and opportunities banks face in a global financial landscape characterized by changing interest rates and exchange rates, thereby aiding financial institutions in making informed decisions to enhance their profitability