Effect of exchange rate fluctuation on external reserve in Nigeria
Autor(a) principal: | |
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Data de Publicação: | 2023 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Journal of Perspectives in Management |
Texto Completo: | https://periodicos.ufpe.br/revistas/index.php/jpm/article/view/258848 |
Resumo: | This study examines the relationship between exchange rate fluctuations and external reserves in Nigeria, focusing on the inflation rate, interest rate, and public debt as independent variables. It aims to analyze how these factors collectively influence external reserve management, with specific objectives involving the impact of the inflation rate, the influence of interest rate, and the effects of public debt. Using a causal research design and time series data from 2001 to 2021, sourced from the Central Bank of Nigeria Statistical Bulletin, Eviews 12 facilitates analysis. using ordinary least square Method, Descriptive statistics, regression analysis, and diagnostic tests like the Breusch-Godfrey Serial Correlation LM Test and Heteroscedasticity Test provide insights into external reserves, inflation rate, interest rate, and public debt characteristics. Findings reveal a negative relationship between external reserves and the independent variables, emphasizing the roles of inflation rate, interest rate, and public debt. Regression analysis confirms statistical significance, except for public debt. The R2 value of 0.542050 suggests that 54% of external reserve changes are explained by the selected variables. Diagnostic tests confirm model reliability, holding implications for policymakers and stakeholders in understanding factors influencing external reserve management. In conclusion, the study underscores the critical importance of sound macroeconomic policies in managing Nigeria's external reserves. Negative relationships observed emphasize the need for strategic interventions. Recommendations include maintaining price stability, optimizing interest rate policies, practicing prudent debt management, diversifying funding sources, serving as a guide for policymakers to navigate economic challenges, and enhancing Nigeria's external reserves' resilience. |
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Journal of Perspectives in Management |
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Effect of exchange rate fluctuation on external reserve in NigeriaExternal reserveExternal reserve managementInflation rateInterest ratePublic debtExchange rateCorporate financeThis study examines the relationship between exchange rate fluctuations and external reserves in Nigeria, focusing on the inflation rate, interest rate, and public debt as independent variables. It aims to analyze how these factors collectively influence external reserve management, with specific objectives involving the impact of the inflation rate, the influence of interest rate, and the effects of public debt. Using a causal research design and time series data from 2001 to 2021, sourced from the Central Bank of Nigeria Statistical Bulletin, Eviews 12 facilitates analysis. using ordinary least square Method, Descriptive statistics, regression analysis, and diagnostic tests like the Breusch-Godfrey Serial Correlation LM Test and Heteroscedasticity Test provide insights into external reserves, inflation rate, interest rate, and public debt characteristics. Findings reveal a negative relationship between external reserves and the independent variables, emphasizing the roles of inflation rate, interest rate, and public debt. Regression analysis confirms statistical significance, except for public debt. The R2 value of 0.542050 suggests that 54% of external reserve changes are explained by the selected variables. Diagnostic tests confirm model reliability, holding implications for policymakers and stakeholders in understanding factors influencing external reserve management. In conclusion, the study underscores the critical importance of sound macroeconomic policies in managing Nigeria's external reserves. Negative relationships observed emphasize the need for strategic interventions. Recommendations include maintaining price stability, optimizing interest rate policies, practicing prudent debt management, diversifying funding sources, serving as a guide for policymakers to navigate economic challenges, and enhancing Nigeria's external reserves' resilience.Universidade Federal de Pernambuco2023-12-21info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleQuantitative Methodapplication/pdfhttps://periodicos.ufpe.br/revistas/index.php/jpm/article/view/25884810.51359/2594-8040.2023.258848Journal of Perspectives in Management; Vol. 7 (2023): JANEIRO-DEZEMBROJournal of Perspectives in Management; v. 7 (2023): JANEIRO-DEZEMBRO2594-8040reponame:Journal of Perspectives in Managementinstname:Universidade Federal de Pernambuco (UFPE)instacron:UFPEenghttps://periodicos.ufpe.br/revistas/index.php/jpm/article/view/258848/45290Copyright (c) 2023 Abass Adekunle Adewale, Lukmon Ayobami Rajihttps://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessAdewale, Abass AdekunleRaji, Lukmon Ayobami2023-12-22T12:46:48Zoai:oai.periodicos.ufpe.br:article/258848Revistahttps://periodicos.ufpe.br/revistas/jpmPUBhttps://periodicos.ufpe.br/revistas/jpm/oaimarcele.elisa@ufpe.br || periodicos.ufpe@ufpe.br2594-80402594-8040opendoar:2023-12-22T12:46:48Journal of Perspectives in Management - Universidade Federal de Pernambuco (UFPE)false |
dc.title.none.fl_str_mv |
Effect of exchange rate fluctuation on external reserve in Nigeria |
title |
Effect of exchange rate fluctuation on external reserve in Nigeria |
spellingShingle |
Effect of exchange rate fluctuation on external reserve in Nigeria Adewale, Abass Adekunle External reserve External reserve management Inflation rate Interest rate Public debt Exchange rate Corporate finance |
title_short |
Effect of exchange rate fluctuation on external reserve in Nigeria |
title_full |
Effect of exchange rate fluctuation on external reserve in Nigeria |
title_fullStr |
Effect of exchange rate fluctuation on external reserve in Nigeria |
title_full_unstemmed |
Effect of exchange rate fluctuation on external reserve in Nigeria |
title_sort |
Effect of exchange rate fluctuation on external reserve in Nigeria |
author |
Adewale, Abass Adekunle |
author_facet |
Adewale, Abass Adekunle Raji, Lukmon Ayobami |
author_role |
author |
author2 |
Raji, Lukmon Ayobami |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Adewale, Abass Adekunle Raji, Lukmon Ayobami |
dc.subject.por.fl_str_mv |
External reserve External reserve management Inflation rate Interest rate Public debt Exchange rate Corporate finance |
topic |
External reserve External reserve management Inflation rate Interest rate Public debt Exchange rate Corporate finance |
description |
This study examines the relationship between exchange rate fluctuations and external reserves in Nigeria, focusing on the inflation rate, interest rate, and public debt as independent variables. It aims to analyze how these factors collectively influence external reserve management, with specific objectives involving the impact of the inflation rate, the influence of interest rate, and the effects of public debt. Using a causal research design and time series data from 2001 to 2021, sourced from the Central Bank of Nigeria Statistical Bulletin, Eviews 12 facilitates analysis. using ordinary least square Method, Descriptive statistics, regression analysis, and diagnostic tests like the Breusch-Godfrey Serial Correlation LM Test and Heteroscedasticity Test provide insights into external reserves, inflation rate, interest rate, and public debt characteristics. Findings reveal a negative relationship between external reserves and the independent variables, emphasizing the roles of inflation rate, interest rate, and public debt. Regression analysis confirms statistical significance, except for public debt. The R2 value of 0.542050 suggests that 54% of external reserve changes are explained by the selected variables. Diagnostic tests confirm model reliability, holding implications for policymakers and stakeholders in understanding factors influencing external reserve management. In conclusion, the study underscores the critical importance of sound macroeconomic policies in managing Nigeria's external reserves. Negative relationships observed emphasize the need for strategic interventions. Recommendations include maintaining price stability, optimizing interest rate policies, practicing prudent debt management, diversifying funding sources, serving as a guide for policymakers to navigate economic challenges, and enhancing Nigeria's external reserves' resilience. |
publishDate |
2023 |
dc.date.none.fl_str_mv |
2023-12-21 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article Quantitative Method |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://periodicos.ufpe.br/revistas/index.php/jpm/article/view/258848 10.51359/2594-8040.2023.258848 |
url |
https://periodicos.ufpe.br/revistas/index.php/jpm/article/view/258848 |
identifier_str_mv |
10.51359/2594-8040.2023.258848 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://periodicos.ufpe.br/revistas/index.php/jpm/article/view/258848/45290 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2023 Abass Adekunle Adewale, Lukmon Ayobami Raji https://creativecommons.org/licenses/by/4.0 info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2023 Abass Adekunle Adewale, Lukmon Ayobami Raji https://creativecommons.org/licenses/by/4.0 |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidade Federal de Pernambuco |
publisher.none.fl_str_mv |
Universidade Federal de Pernambuco |
dc.source.none.fl_str_mv |
Journal of Perspectives in Management; Vol. 7 (2023): JANEIRO-DEZEMBRO Journal of Perspectives in Management; v. 7 (2023): JANEIRO-DEZEMBRO 2594-8040 reponame:Journal of Perspectives in Management instname:Universidade Federal de Pernambuco (UFPE) instacron:UFPE |
instname_str |
Universidade Federal de Pernambuco (UFPE) |
instacron_str |
UFPE |
institution |
UFPE |
reponame_str |
Journal of Perspectives in Management |
collection |
Journal of Perspectives in Management |
repository.name.fl_str_mv |
Journal of Perspectives in Management - Universidade Federal de Pernambuco (UFPE) |
repository.mail.fl_str_mv |
marcele.elisa@ufpe.br || periodicos.ufpe@ufpe.br |
_version_ |
1797041927969832960 |