Economics, Econometrics and Finance
3 years ago

Exchange rate changes in Nigeria impact money demand asymmetrically, study finds.

African Journal of Economic and Management Studies
Asymmetric effects of exchange rate on money demand in Nigeria: evidence from the new broad money aggregate (M3)
Udoma Johnson Afangideh, Tuwe Soro Garbobiya, Farida Bello Umar, Nuruddeen Usman, Victor Unekwu Ocheni, Sanusi Muhammad Yakubu

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The study looked at how changes in exchange rates affect the demand for money in Nigeria. They used a model that considers the costs of holding money and tested it with different measures of money supply. The results showed that positive and negative changes in exchange rates have different effects on the demand for money, suggesting that the relationship is not symmetrical. This study is the first to look at the new broad money measure (M3).