Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) December 2016 Vol. 4(11), pp 461-468
Copyright © 2015 Global Advanced Research Journals
Original Research Articles
Implications of Exchange Rate Variability on Oil Exports Trade Performance in Nigeria
Dr. Onwe, Basil Uche
Department of Accountancy, Banking and Finance, Ebonyi State University, P.M.B. 053 Abakaliki
Accepted 12 December 2015
The aim of the study is to evaluate the implication of exchange rate variability on oil export trade performance in Nigeria. In achieving the objectives of the study, the study made use of ordinary least square, correlation coefficients and graph. The study found among other things that there was bi-directional relationship between exchange rate fluctuation and oil export trade in Nigeria and there is no short-run relationship between fluctuation in exchange rate and oil export trade in Nigeria. It is also found that that exchange rate variability has significant and positive implications on oil export receipt (OER) and oil export price (OEP) in Nigeria. The policy implication of this study is that government should evolve more efficient policy strategies that would ensure that exchange rate variability will be stable to enable it impact on oil export trade performance in Nigeria because it will enhance their profile and thereby contribute the growth of the nation’s economy. The study among other things recommended that trade liberalization policy of the country should be carefully pursued in a way that the country’s level of trade openness should favour oil export trade performance, while diversification of the country’s economy from that of oil dependence is necessary to checkmate the adverse effect of the county’s trade balance on oil export performance.
Keywords: Exchange Rate, Oil Export Receipt, Oil Export Price, Variability, Efficient.