Exchange rate Management in Nigeria: A Study of Dutch Auction System
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Date
2015-06-30
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Department of Accounting, Banking and Finance, Osun State University
Abstract
The quest for a stable and realistic exchange rate for Naira with a view to achieving the overall macroeconomic stability hassled to series of reforms in the Nigerian foreign exchange market. This paper examined the contribution of one such reforms, the adoption of Dutch Auction System (DAS) towards achieving the stated macroeconomic objectives. This was achieved by comparing the stability of exchange rates in Nigeria over a twenty four year period split into two- pre and post DAS adoption. Wilcoxon signed rank test was employed as the statistical tool for testing the hypothesis. The result of the test shows that there is a significant difference in the pre and post DAS exchange rate stability. The study concluded that the adoption of DAS has had significant influence on the stability of exchange rate in Nigeria.
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Keywords
Balance of payment, Exchange Rate, Dutch Auction System
Citation
Jimoh, et al.