ProjectClue.com We're Ready, Call Us

(+234) 07030248044

Project Topic:

THE ROLE OF FOREIGN EXCHANGE MARKET IN ACHIEVING A REALISTIC EXCHANGE RATE FOR NAIRA

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5  ::   Pages: 52 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   331 people found this useful

Project Department:

BANKING FINANCE UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

ABSTRACT

            The remote cause of the problem that necessitated this study in perhaps, the chronic balance of payment deficit which the country has been experiencing since independent.  An attempt to solve the problem through the use of exchange control measure ha not been quite successful rather, it has succeeded in bringing about on over valued naira  the foreign exchange market as an implementation strategy of the structural adjustment programme introduced bid, the study seeks to investigate the role which the foreign exchange market has played in achieving a realistic exchange rate for naira, quite elaborately, there optima supported by existing literature are if the officials to the equibrium rate, if exchange rate adjustment are not accomplished by proportionate improvement in balance of trade cum-payment.

            Some statistical tests are employed in the study this is the market equilibrum model used to date the equilibrium exchange rate out to be.

            At the end of study, it was found out that the foreign exchange market failed to fulfill any of the above condition meaning that so far.  It has not achieved a realistic exchange rate for naira.

TABLE OF CONTENTS

CHAPTER ONE

1.0              Introduction

1.1       Background of the study

1.2              Statement of the study

1.3              Purpose of the study

1.4              Significance of study

1.5              Limitation of study

CHAPTER TWO

2.0              Review of related literature

CHAPTER THREE

3.0              Research design and the methodology

3.1       Sources of data (Secondary source only)

3.2              Location of data

3.3              Method of data collection (Literature work only

CHAPTER FOUR

Finding

 

CHAPTER FIVE

Recommendation and conclusion

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF STUDY

            Foreign exchange is an important economic variable as its appreciate or depreciation the performance of other macroeconomic variables in any economy.  Also, its real value can be used to assess the strength and the overall performance of any economy for these the viability of a nation’s economy is measured by its ability to achieve certain macro-economy objectives.  These include:

(a)        High level of employment

(b)        Stability in the exchange rate

(c)        Satisfactory balances of payment situation and maintenance of the external value of the domestic currency.

(d)       A reasonable level of economic growth and rising living standards.

(e)        Avoidance of inflation. 

(f)        Distribution of income

Soon after the attainment of independence, Nigeria like most sovereign nations directed its economy exchange earnings could not remedy the situation.  At this period when agriculture was regulated to the background , Nigeria depended on oil, nevertheless, oil boom did not survive for long addition, stringent measure in foreign exchange to banks on global sect oral and monthly basis, import-licensing matching with the foreign exchange budget for import to enhance budget discipline alighted and blue print to economic buoyancy, made the structural adjustment programme (SAP) inevitable.  As designed by the federal government, SAP focuses in four areas; they are:

1.         Finding the true value of naira through the setting up of viable second-tier foreign exchange market, now foreign exchange market.

2.         Overcoming the observed public sector inefficiency through improved public expenditure programmed and the speedy rationalization of peristyle relieving the debt burden through a comprehensive researching of countrys medium and long term debt and encouraging a net inflow of foreign capital.  With the approval of the international monetary authorities.  Nigeria parted with the fixed exchange a rate system and adopted the floating exchange rate system in September 1986 as part of structural adjustment programme.  With this end the establishment market government hoped to achieve the following objective.

(i)                 Carrying out through examination of the foreign exchange management policies used in Nigeria.

(ii)               More efficient resources allocation.  Through substantial reduction, if not elimination of fraudulent and wasteful foreign exchange transition.

(iii)             Determining the cause of foreign exchange instability.

(iv)             A realistic exchange rate for the naira through the interplay of market forces.

1.2       STATEMENT OF THE PROBLEM

            Why is a foreign exchange market being look upon as the instrument of achieving a realistic exchange rate for the naira?

            Why has it just downed on them, our monetary authorities that realistic exchange rate adjustment other such bright prospects for the reaping and restricting of our battered economy?

            Before dealing with these key issues, it is pertinent to take a cursory look at the main thrust of Nigeria’s macro-economic management.  Since 1982, there has been an intensification of these controls and the economy had been as it were under depression.  An over valued currency was very much in evidence.

1.3       PURPOSE OF STUDY

            To what extent has the foreign exchange market achieved a realistic exchange rate for the naira?  This is the question, which this research study seeks to investigate.

1.                  To identify the role of force market achieving a realistic exchange rate.

2.                  To determine whether or not the high exchange rate of naira to dollar and other foreign currencies as a result if imperfections in the Nigeria foreign market.

3.                  To determine whether or not equilibrium of the force of demand and supply will lead to a realistic exchange rate.  Micheal P. Todare expressed that “Choice payment deficits resulting primarily from current account transaction has been controlled by exchange rate market.

1.4       SIGNIFICANCE OF STUDY

            It is common knowledge that the most serious problem facing the Nigerian financial authorities in recent times has been the effective management of the foreign exchange market in the determination of a realistic rate of the naira.  The demand for foreign exchange resource has continued to exceed supply of foreign exchange because virtually every unit 09f a higher total liquidity of the system is a potential buyer pf the grossly diminished foreign exchange earnings.

            Consequently, this topic: the role of foreign exchange market in achieving a realistic exchange rate for naira has of great importance to our country and also foreign exchange through the achievement of a realistic exchange rate which alliterate the rate of economic growth.

Get the complete project »

Instant Share On Social Media:

OTHER SIMILAR BANKING FINANCE PROJECTS AND MATERIALS

A CRITICAL ANALYSIS ON THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 72 ::   Attributes: Questionnaire, Data Analysis  ::   1185 engagements

ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used a...Continue reading »

A STUDY ON THE ACCEPTANCE AND ADOPTION OF THE CBN CASHLES POLICY IN PORT HARCOURT, NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   628 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND TO THE STUDY One of the prerequisites for the development of national economy according to Ajayi et al, 2006 is by encouraging a payment system that is secu...Continue reading »

A STUDY ON THE IMPACT OF BUDGETARY CONTROLS ON THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIDELITY BANK PLC)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1091 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY AND PROFILE OF THE ORGANIZATION Following the uncertainties prevailing in the Nigerian business environment today, managers and stakeholders mu...Continue reading »

ANALYZING PERFORMANCE APPRAISAL TECHNIQUES IN UNION BANK NIG PLC

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1717 engagements

CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY In any evaluation of the condition necessary for the growth and survival of an organization, the role of performance appraisal is a strategic f...Continue reading »

AUDIT INDEPENDENCE: ENHANCING ACCOUNTABILITY AND TRANSPARENCY IN CORPORATE ORGANIZATIONS

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 71 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1077 engagements

CHAPTER ONE INTRODUCTION 1.1. Background of the study The subject of transparency and accountability in modern day corporate organizations has continued to receive attention as never before. It has b...Continue reading »

CREDIT MANAGEMENT AND ISSUES OF BAD DEBTS IN COMMERCIAL BANKS IN NIGERIA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis,Abstract

The article on this topic (credit management and issues of bad debts in commercial banks in Nigeria) is an extract from literature review of the project material. The complete project work would be ma...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Taleeb from Kwara state polytechnic said "I like all topics on this website but anytime i wrote topic to my project supervisor he used to ask where is the case study and case study is not written there . thanks ................".
    Rating: Very Good
  • 2. Donald from ui said "i thank you guys for the good work...i never believe that there are still some Nigerians that are trustworthy until i stumbled upon projectclue. excellent job. great write up. weldone Glory keep up the good job. nice voice.,...i will always recommend projectclue to any Nigerian researchers...God bless.".
    Rating: Very Good
  • 3. Abdoulrasheed Tapheeda from Taraba State University,Jalingo said "The Project Clue owe me a Tribute Respect, because of the nature of their work and delivery system. I recommend this site for any undergraduate due to the quality and fast delivery system of their work. Thanks".
    Rating: Excellent
  • 4. Sam Seyil from Federal Uni Agric. Markudi said "I had a wonderful experience using ProjectClue, they delivered not only on time, but the content had good quality. I recommend ProjectClue for any project research work.".
    Rating: Excellent
  • 5. Eval, Effa A. from University of Calabar (Unical) said "It was a wonderful experience using projectClue, it really helped me in carrying out a Term paper research NGP.".
    Rating: Good
  • 6. Abimbola Bisola from Obafemi Awolowo University said "Thanks a million times for giving me a quality research project. not only have i defended i was commended by my supervisor. You guys are the best; Project clue".
    Rating: Very Good

Leave a comment: