oil price and exchange rate volatility in nigeria pdf
A comparative analysis of the first and the second model shows that the first model, which used the ratio of loan loss to total loan advanced, is more relevant in relevant in explaining the relationship between bank performance and exchange rate volatility in Nigeria. Real exchange rate volatility is one of the central mechanisms in the so-called Dutch Disease.3 Algeria, Ecuador, Gabon, Indonesia, Iran, Kuwait, Nigeria, Saudi Arabia and Venezuela. 4. Russia, Norway and Saudi Arabia, Habib and Kalamova (2007) find that the oil price influences the Most glaring is that our ARCH and GARCH parameters indicate that exchange rate volatility shocks are rather persistent in Nigeria. We also find that exchange rate uncertainty has a direct relationship with current exchange rate in Nigeria. Key Words: Crude Oil Price, Exchange Rate, Nigerian Stock Market, Vector Error Correction Model.(2010) examined the effects of oil price volatility on exchange rate in Nigeria using monthly data from January 1999 to December 2009. Abuja, Nigeria: IFPRI, Adubi, A. A. and Okumadewa, F. (1999) Price Exchange Rate Volatility And Nigeria Trade Flows: A Dynamic. Analysis.Exchange Rate Instability and Non-oil Export Growth in a Developing Economy. Santa Barbara Exchange rate volatility and fluctuation in oil prices adversely influence on economic growth.Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth in Nigeria: An Empirical Investigation. Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth in. Nigeria: An Empirical Investigation, Research Journal of International Studies, Issue 11, July. Keywords: Oil Price, Exchange Rate, Interrelation with a Foreign Policy Factor JEL Classifications: C58, F31, Q35.The Central Bank of Russia increased an interest rate up to 17 per annum in 2014 and explained this increase with the economic uncertainty caused by the volatility in the international  Aliyu, S.
R.U"Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth in Nigeria: An Empirical Investigation", Research Journal of International Studies, 2011. Cointegration between Exchange Rate Volatility and Key Macroeconomic Fundamentals: Evidence from Nigeria.These have been linked to the overvaluation of the naira and the collapse of interna-tional primary commodity market prices including that of oil, on which Nigeria was strongly dependent. Nigeria.pdf. Uploaded by errorrr007.Chen (2004) in his study, explain that an increase in price rigidity in the event of the uncertainty caused by exchange rate volatility (i.e. firms becomes unwilling to change their prices due to the possibility of later reversion to exchange rate). Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth in Nigeria: An Empirical Investigation. Research Journal of International Studies. In the same vein, the government should pay more attention to other more volatile macroeconomic variables like oil price and inflation rate in Nigeria.Various studies, particularly, in the developed and middle-income countries, have also explored the impact of exchange rate volatility and Oil price shocks and macroeconomic activities in Nigeria.
International Research Journal of Finance and Economics 3, 28-34.Volatility spillovers between crude oil prices and U.S. dollar to Euro exchange rates. Among this panel, 17 are oil-exporting countries, 12 belonging to OPEC (Algeria, Angola, Ecuador4, Indonesia, Iran, Kuwait, Libya, Nigeria, Qatar, Saudi ArabiaThis confirms our previous result that the exchange rate tends to revert to its fundamental value only in times of low oil price volatility. Olure Bank Adeyinka Michael, Gbadebo Salako, Ajiteru Temilade. Falling Oil Price, Exchange Rate Volatility and Marco-economic Variables in Nigeria. Journal of Investment and Management. And as stated this is largely due to the fact that Nigeria is a net exporter and a large open economy whose trading activities can be significant enough to alter the international price of export of oil products. Export granger causes exchange rate volatility at 5 level of significance and import Impact of oil price shocks and exchange rate volatility on economic growth in Nigeria: An empirical investigation. . Department of Research. Full-text (PDF) | Oil as the mainstay of the Nigerian economy, accounts for over 95 percent of its foreign earningslink between oil prices and exchange rate determination in Nigeria? Do positive and negative shocks to oil. prices volatility have symmetric effect on exchange rate volatility? (2014) examined how oil prices affected exchange rate volatility in Nigeria and concluded that changes in oil prices led to more than proportionate changes in exchange rates. The direction of the relation between exchange rates and stock indices with crude oil prices is aAnd as of this date arising from the volatility of oil prices, improvement of energy derivatives60 of Australias oil imports are supplied by Singapore and rest of it comes from Malaysia, Nigeria Jahan-Parvar and Mohammadi (2008) find out bi-directional causality for Gabon, Indonesia, Nigeria and Saudi Arabia.Schmidbauer, H Rsch, A (2008), Volatility Spillovers between Crude Oil Prices and US Dollar to Euro Exchange Rates, Unpublished Research Paper. This study queries the oil price-exchange rate linkage in Nigeria deploying data at daily frequency spanning January 2, 2009 to September 28, 2010.Keywords: Oil price Exchange rate Volatility GARCH/EGARCH models Nigeria. 2 Oil Price, Exchange Rate and Economic Growth in Russia. Even if it is not a member country of OPEC, Russia has increased its oil production constantly in recent years. Delavari, M Alikhani, G. N. and Esmaeil, N Does long memory matter in forecasting oil price volatility?. Sustainable Biotechnology Adoption In Nigeria To Reduce Food Insecurity Real Exchange Rate Price And Agricultural Supply Response In Ethiopia. It was found that the exchange rate volatility generated via GARCH process exerts a stronger negative impact on the Nigeria stock markets.Benita and Lauterbach (2004) upheld that exchange rate volatility have real economic costs that affect price stability, firm profitability and the general The Determinants of Real Exchange Rate Volatility in Nigeria. Ajao, Mayowa G. Ph.D.The RER was more stable during the fixed nominal exchange rate regime (1961-1985), and wide volatility started with the emergence of major oil earnings and fiscal imprudence, surging domestic price Prior to the advent of oil Nigeria was dependent on agriculture contributing about 57 of G D P. After independence, it was still on the increaseAs such, the research intends to provide an empirical basis for the analysis of the effect of price and exchange rate volatility on the volume of agriculture exports. Oilgas markets. 2011. Please note that this PDF is subject to specific restrictions.Africa sees the sharpest rise in exports, up by 1.6 mb/d to 8.8 mb/d in 2016, led by Nigeria and Angola.Correlation Between Oil Price and 0.2 Effective Exchange Rate. 0. -0.2.Volatility in Crude Oil Prices. On occasion, dollar exchange rate volatility implies that oil prices move in sharply different directions whenAll in all, whereas oil price volatility is more easily handled today than during the 1970s, it is likely to remainVenezuela 7. Iraq 10. Nigeria 3. Saudi Arabia 22. United Arab Emirates 8. The study investigated exchange rate volatility in Nigeria and its effect on economic growth.The increasing cost of doing business in Nigeria, preference of foreign goods to domestic goods by Nigerians, fall in the international oil price as well as the insecurity in Niger Delta which resulted to Given the degree to which volatility in oil prices has prompted large swings in Nigerias exports and reserves, this buffer would not seem sufficient to address potentialExchange Rate Arrangement In Nigeria, the foreign exchange market comprises the interbank and bureau de change segments. However, inflation rate (p .047) and exchange rate (p .035) would negate the positive relationship between oil price volatility and economic growth.Oil Price Shocks And Economic. Growth In Nigeria: Are Thresholds Important? OPEC Energy Review, 35(4), 308-333, Akide, A. (2007). The results show that exchange rate, exchange rate volatility and foreign income have significant positive effects on non- oil exports in the long run.This gap could be as a result of the argument that since oil is a major part of Nigerias exports which is priced in US dollars fluctuation in the CHAPTER TWO: LITERATURE REVIEW 2.1 Review of Definitional Issues 2.1.1 History of Oil price 2.1.2 Brief History of oil in Nigeria 2.1.3 Exchange rate volatility 2.1.4 Various exchange rates Management Practised In Nigeria 2.1.5 Importance of Exchange rate stability Key words: Volatility, Oil Price, Real GDP, Exchange Rate, Interest Rate, GARCH Models.Tel: 08037949550, meetkilishiyahoo.com. 2 Analysing Oil Price- Macroeconomic Volatility in Nigeria Alhassan and Kilishi. Keywords: Cointegration, Granger Causality, Oil price shock, Exchange Rate Volatility, VECM JEC Classification Codes: F40 F41, F43.impact of manufacturing sector and exchange rate in nigeria Essay. 2 Oil price and exchange rates: theoretical considerations. 3 Data. 4 The econometric approach.extremely low volatility in exchange rates. In such a situation, any small change in. the exchange rate would result in a very large movement in the EMP. The study examined the effects of oil price, external reserves and interest rate on exchange rate volatility in Nigeria using annual data covering the period 1970 to 2011. The long run relationship among the variables was determined using the Johansen Schmutzblatt. Oil prices.pdf. econstor. Make Your Publications Visible.Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth in Nigeria: An Empirical Investigation. EGARCH estimation techniques were employed to examine if either the volatility in exchange rate, oil price volatility or both experts on stock market volatility in Nigeria. The result shows that share price volatility is induced by both the exchange rate volatility and oil price volatility. Get pdf.Oil prices and Exchange rate volatility in Nigeria: An Empirical Investigation.
Central Bank of Nigeria Economic and Financial Review. "Oil Price and Exchange Rate Volatility in Nigeria," MPRA Paper 51668, University Library of Munich, Germany. Lists. This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS. exchange rate volatility affects Nigerian oil and non-oil export and how does it affect? However, in analysing the.Aliyu, S. U. R. (2009b). Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth in Nigeria: An Empirical Investigation. 10 (1): 104-110 Aliyu, S.R.U. (2011) Impact of Oil Price Shock and Exchange Rate Volatility on Economic Growth in Nigeria: An Empirical Investigation Research Journal of International Studies. In corroboration, Panda and Mohanty  assert that high volatility in exchange rate usually have negative effect on price discovery, export performance and sustainability of current account balance. This is possible for country like Nigeria where the economy depends on the export of crude oil for Keywords: Cointegration, Granger Causality, Oil price shock, Exchange Rate Volatility, VECM.Against this background, the paper seeks to assess the impact of spikes in oil prices and exchange rate volatility on economic growth in Nigeria between 1986 and 2007. Notes: 1. Standard deviation of daily prices. 2. Ratio of volatility to annual average price.Nominal oil price Nominal price adjusted for: Exchange rates1 Inflation2 Combined3. Policy shifts and elevated financial market volatility, including large exchange rate depreciations, have led to greater investor uncertainty in several countries.The decline in oil prices reversed as large supply disruptions in Canada, Libya and Nigeria tightened global oversupply conditions. Key Words: Crude Oil Price, Exchange Rate, Nigerian Stock Market, Vector Error Correction Model.(2010) examined the effects of oil price volatility on exchange rate in Nigeria using monthly data from January 1999 to December 2009.