Nigeria's Exchange Rate Volatility Linked to Global Market Integration and Oil Prices
The study looked at why the value of Nigeria's money compared to the US dollar keeps changing. They used a special math method to analyze data from 1970 to 2013. The results showed that factors like money coming in and out of the country, how connected Nigeria is to the world market, and the country's financial system affect how much the money's value changes. Good things like high oil prices and economic growth help make the money's value more stable. But things like borrowing money from other countries and making more money in Nigeria can make the value change more. To make the money's value more stable, they suggest Nigeria should trade more with other countries, rely less on borrowing, save more money from selling oil, improve the financial system, and control how much money is made in the country.