IDEAS home Printed from https://ideas.repec.org/a/pkp/teafle/2019p1-8.html
   My bibliography  Save this article

Exchange Rate and Foreign Reserves Interface: Empirical Evidence from Nigeria

Author

Listed:
  • Ebere Ume Kalu

    (University of Nigeria, Nsukka, Nigeria)

  • Ogochukwu E. Ugwu

    (Enugu State University of Science and Technology, Enugu State, Nigeria)

  • Victor Chijioke Ndubuaku

    (Federal College of Agriculture, Isiagu, Ebonyi State, Nigeria)

  • Ozioma Patricia Ifeanyi

    (Federal College of Agriculture, Isiagu, Ebonyi State, Nigeria)

Abstract

This work was set out to measure the responsiveness of foreign reserves to exchange rate variables with a focus on the Nigerian economy. Foreign reserve was used as a dependent variable and all the exchange rate related variables used as independent variables. Time series data spanning 1996 to 2016 was used. A combined use of the Auto Regressive Distributed Lag Model (ARDL) and correlation matrix were employed. It was found that a positively significant relationship exists between real exchange rate and reserves with nominal exchange rate sharing a positive but non-significant relationship with foreign reserves. This makes a case for proper policy direction in the management of exchange rate in a manner that produces the best economic results for the Nigerian economy. The results are considered useful for economies in the shape of Nigeria for generalization and policy direction in the management of foreign reserve and its interface with exchange rate and its related factors.

Suggested Citation

  • Ebere Ume Kalu & Ogochukwu E. Ugwu & Victor Chijioke Ndubuaku & Ozioma Patricia Ifeanyi, 2019. "Exchange Rate and Foreign Reserves Interface: Empirical Evidence from Nigeria," The Economics and Finance Letters, Conscientia Beam, vol. 6(1), pages 1-8.
  • Handle: RePEc:pkp:teafle:2019:p:1-8
    DOI: 10.18488/journal.29.2019.61.1.8
    as

    Download full text from publisher

    File URL: http://www.conscientiabeam.com/journal/29/abstract/5394
    Download Restriction: no

    File URL: http://www.conscientiabeam.com/journal/29/abstract/5394
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:khe:scajes:v:5:y:2019:i:3:p:105-111 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pkp:teafle:2019:p:1-8. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Editorial Office). General contact details of provider: http://www.conscientiabeam.com/journal/29 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.