The study looked at how oil prices affect the exchange rate in Nigeria from 1980 to 2017. They used a technique called the Markov Switching Model to see how the exchange rate moves between different regimes. They found that there are two exchange rate regimes: managed float and fixed. The exchange rate is more likely to switch from a fixed regime to a managed float regime. Oil prices and exchange rates tend to move in opposite directions, even when the exchange rate regime changes.