Oil price and exchange rate volatility in nigeria

As the large exporter of crude oil, Nigeria heavily depends on oil earnings to fund The study investigated the dynamics of crude oil price and exchange rate the influence of crude oil price volatility on the exchange rate fluctuation as well as  This study queries the oil price-exchange rate linkage in Nigeria deploying data at daily frequency spanning. January 2, 2009 to September 28, 2010. Two volatility  He revealed that exchange rate volatility decreased non-oil exports in Nigeria. In another study, Aliyu (2009b) examined the impact of oil price shock and 

price movements over our sample and account for close to 13% of the variation in oil prices and in the US dollar exchange rate during volatile periods, such as  0.49%), its volatility is somewhat lower than the volatility of the oil price because of diversification. On the other hand, Brazil has the least volatile index (with a  Oil Price and Exchange Rate Volatility in Nigeria. between real oil price and real exchange rates a nd found that real oil prices is a dominant cause of real exchange . rate movements. Nigeria is a mono-product economy, where the main export commodity is crude oil, changes in oil prices has implications for the Nigerian economy and, in particular, exchange rate movements. The latter is mostly important due to the double dilemma of being an oil exporting and oil-importing country, a situation that emerged in the last decade. OIL PRICE AND EXCHANGE RATE VOLATILITY IN NIGERIA. ABSTRACT. Nigeria is a mono-product economy, where the main export commodity is crude oil, changes in oil prices has implications for the Nigerian economy and, in particular, exchange rate movements. between oil prices and exchange rate volatility in the Nigerian economy. Specifically this study intends to investigate the dynamic relationship between oil prices and exchange rate volatility using monthly data from 1999 to 2009 for the analysis. Following this introduction, Section 2 reviews empirical studies on the

The impact of exchange rate and oil prices fluctuation on the stock market has been a subject of hot debate among researchers. This study examined the impact of both the exchange rate volatility and oil price volatility on stock market volatility in Nigeria, so as to guide policy formulation based on the fact that the nation’s economy was foreign induced and mono-cultured with heavy

I therefore recommend that the Nigeria government should diversify from the Oil sector to other sectors of the economy so that Crude oil will no longer be the mainstay of the economy and frequent changes in crude oil price will not influence exchange rate volatility significantly in Nigeria. between volatility of crude oil prices and exchange rates in Nigeria in the long-run. In the short-run, however, this relationship was negative and statistically not significant within the period of study. The results also showed money supply (M2), gross domestic product (GDP) and lending interest rate as Nigeria being a mono-product economy, where the main export commodity is crude oil, changes in oil prices has implications for the Nigerian economy and, in particular, exchange rate movements. The latter is mostly important due to the double dilemma of being an oil exporting and oil-importing country, a situation that emerged in the last decade. The impact of exchange rate and oil prices fluctuation on the stock market has been a subject of hot debate among researchers. This study examined the impact of both the exchange rate volatility and oil price volatility on stock market volatility in Nigeria, so as to guide policy formulation based on the fact that the nation’s economy was foreign induced and mono-cultured with heavy

OIL PRICE AND EXCHANGE RATE VOLATILITY IN NIGERIA. ABSTRACT. Nigeria is a mono-product economy, where the main export commodity is crude oil, changes in oil prices has implications for the Nigerian economy and, in particular, exchange rate movements.

He revealed that exchange rate volatility decreased non-oil exports in Nigeria. In another study, Aliyu (2009b) examined the impact of oil price shock and  2 Jun 2017 Long-run in-sample evidence between exchange rates and oil prices . based on assumptions related to the underlying kind of volatility. Copula frameworks assess and compare Brazil, Nigeria and the. UK show higher.

This study attempts to examine the extent to which oil price influences exchange rate volatility in Nigeria. Oil price changes directly affects the inflow of foreign exchange into the country, therefore there is a need to investigate its impact on the naira exchange rate

4 Apr 2013 Apkan (2009) was able to the dynamic relationship between oil price shocks and major macroeconomic variables in Nigeria by applying a VAR 

The study examined the effects of oil price, external reserves and oil revenue on exchange rate volatility in Nigeria using yearly data from the year 1980 to 2016.

(interest rate volatility, real GDP volatility) and external shocks (exchange rate volatility and oil price volatility). Therefore, it is concluded that more credence should be given to asymmetric models in dealing with macroeconomic volatility in Nigeria and oil price volatility should be

tors that attenuate the link between oil price shocks and the exchange rate. Existing The greater volatility of oil and commodity prices in the recent years revived the interest of The only exception was Nigeria which had a small negative. 1 Apr 2015 With the oil price at low level in Nigeria, exchange rate volatility has been manifested at different exchange rate regimes in Nigeria, the study  Learn how oil and commodity prices influence currency exchange rates in with import-export trade have experienced increased exchange rate volatility in  4 Apr 2013 Apkan (2009) was able to the dynamic relationship between oil price shocks and major macroeconomic variables in Nigeria by applying a VAR  price movements over our sample and account for close to 13% of the variation in oil prices and in the US dollar exchange rate during volatile periods, such as  0.49%), its volatility is somewhat lower than the volatility of the oil price because of diversification. On the other hand, Brazil has the least volatile index (with a  Oil Price and Exchange Rate Volatility in Nigeria. between real oil price and real exchange rates a nd found that real oil prices is a dominant cause of real exchange . rate movements.