This research examines fluctuations in the international currency exchange value (exchange rate) of the Nigerian naira (N) for the period 1985 1991 inclusive. In this research, the value of the naira in relation to the United States dollar is used as the basis of measurement.
An Economic Assessment of Exchange Rate Fluctuations in Nigeria
Exchange Rate Movements (Value of the Naira in Dollars
Fluctuation implies that the value of the Nigerian naira moved both up and down in relation to the United States dollar during the period of analysis. In fact, however, the movement of the exchange value of the naira was always down (the naira decreased in value in relation to the dollar), with the only variation being the rate of decline from year to year. The mean annual international currency exchange values of the naira for the 1985 1991 period are presented in Table 1, which may be found on the following page.
Theory of Exchange Rates, Exchange Rate Behavior, and Methods of Exchange Rate Determination
International payment balances, domestic interest rates, domestic and international price level changes, monetary policies, and a host of other factors influence the behavior of international currency exchange rates within the parameters of exchange rate theory. Both the influence and the interrelationships between these factors are best explained
through a consideration of the methods by exchange rates are determined, explained and predicted.
Exchange Values for the Naira: 1985 1991
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Year US$ Naira
1985 1 1.00
1986 1 3.32
1987 1 3.92
1988 ...