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Direct Research Journals
Vol.3 (2), pp. 20-28, August 2016
ISSN 2449-0806

Implication of exchange rate policies for sustainable development in Nigeria
Article Number: DRJA11034251
DOI:

Original Research Article


*1Jeremiah femi Olu, 2M.M. Usman, 1Moses Musa Ochimana and 3Abubakar T. Hassana


1Department of Economics, Kogi State University, Anyigba, Kogi State, Nigeria.

2Department of Accounting, Kogi State University, Anyigba, Kogi State, Nigeria.

3Department of Business Education, Federal College of Education, Okene, Kogi State, Nigeria.

Author Email: olujerry1@gmail.com


date Received: May 5, 2016     date Accepted: August 3, 2016     date Published: August 27, 2016

Abstract

This research study examined the implication of exchange rate policies for sustainable development in Nigeria between 1991 and 2014. Basically there are three (3) types of exchange rate policies, namely; pegged, floating or outright devaluation. The central focus of this study is to find out if the naira exchange rate policies employed at different times have had any significant implication for economic growth and sustainable development in Nigeria. The study made use of secondary data sourced for a period of 22 years. The ordinary least square (OLS) research technique was used to estimate the data with the gross domestic product (GDP) serving as the dependent variable and explanatory variables includes; exchange rate, inflation rate and the interest rate for the period of study. Our findings showed that the exchange rate regime employed notwithstanding, economic growth and development is not often affected or determined by the choice of exchange rate policies in Nigeria, whether pegged, floating or outright devaluation. We therefore recommend that efforts should be geared towards promoting policies that would make the nation’s economy more vibrant through stable exchange rate and export promotion to help correct the imbalance in foreign trade.


Key words: Implication, exchange rate, policies, sustainable, development