Nigerian Economic Society
Hi Guest,
Home | Paper Submission | Signup |
      
Providing intellectual leadership in economic management in Nigeria
OIL PRICE SHOCKS AND EXCHANGE RATE DYNAMICS IN NIGERIA

OIL PRICE SHOCKS AND EXCHANGE RATE DYNAMICS IN NIGERIA

 

Abstract: Nigeria's persistent exchange rate crises are fundamentally linked to oil price shocks. The most recent oil bust of mid-2014 which ignited internal macroeconomic dislocations, including an economic recession, coupled with rising inflation, saw the country recording a double-digit decline in the value of the naira. This paper examines exchange rate management in Nigeria in the periods of oil boom and bust. Findings indicate that the oil price collapse of 2014 triggered a currency crisis in the country. The devaluation of the naira exacerbated the very problem it was meant to solve, which is the scarcity of foreign exchange and a widening gap between the official rate and the parallel market rate. While a currency float remains the most efficient policy option, the country must avoid ad-hoc interventions and manage its exchange rate transparently to curtail the dominance of speculation and arbitrage in the exchange market. Complementary measures are also needed to tackle structural challenges affecting currency inflows, including the high dependence on the petrodollar and the prevalent black market.
JEL Classification: E3, 024, P42

 

 

 

Login

Forget password? | Signup for Free!
Note: You must signup your email and create a password before you can register as an NES member
 

Latest News

63rd ANNUAL CONFERENCE ANNOUNCEMENT: CALL FOR ABSTRACTS

63rd ANNUAL CONFERENCE ANNOUNCEMENT 26 - 30 September 2022 Venue: Kano, Kano State, Nigeria ...read more


NEW EXECUTIVE COUNCIL OF THE NIGERIAN ECONOMIC SOCIETY

At the end of the Annual General Meeting (AGM) during the 62nd Annual Conference of the Society held...read more


NES 2021 PhD THESIS PRIZE AWARD WINNERS

Winners of the 2021 NES PhD Thesis Award Prize in Economics. 1st Prize - Shitile, Tersoo Shimonka...read more


Vacancy! Vacancy!! Vacancy!!!

The Nigerian Economic Society (NES) is looking for a highly qualified candidate who will fill the fo...read more


2021 Annual Conference Call for Nominations into the New Executive Council of the Nigerian Economic Society (NES)

At the Business Session of the 2021 Annual Conference of the NES which comes up in October 2021 both...read more


NES 2021 PhD THESIS PRIZE AWARD: Call for Submissions

NES PhD THESIS PRIZE AWARD: Call for Submissions The Executive Council of the Nigerian Economic So...read more


E-Mail Subscription

VoguePayVisaMasterCard