Please use this identifier to cite or link to this item: https://library.cbn.gov.ng:8443/jspui/handle/123456789/267
Title: Exchange market pressure in Nigeria and the reaction of the monetary authority: an empirical investigation
Authors: Yakub, Maaji U.
Ismail, Fatima U.
Belonwu, Maximillian C.
Keywords: Exchange Market Pressure
Vector Autoregressive (VAR)
Monetary Authority
Exchange Market Pressure-Nigeria
Issue Date: Sep-2012
Publisher: Research Department, Central Bank of Nigeria
Citation: Yakub, M., U., Ismail, F. U., and Belonwu, M. C. (2012). Exchange market pressure in Nigeria and the reaction of the monetary authority: an empirical investigation. Economic and Financial review (EFR), 50 (3) Part A: 235-255
Series/Report no.: Volume 50;Number 3
Abstract: ,The paper used monetary model approach to exchange market pressure developed by Girton and Roper (1977) to construct Exchange Market Pressure (EMP) index for Nigeria and the reaction of the monetary authority in dampening the pressure during managed floating regime spanning 1999 Q I through 20 12Q4. Empirical findings from the Vector Autoregressive (VAR) method suggested that interest rate differential and external reserves were important variables in managing EMP, while domestic credit related inversely with EMP. The policy implication of this is that foreign reserves remained the most important determinant of EMP in Nigeria. Essentially, contractionary monetary policy, through increase in short -term interest rate, can be used to ease exchange market pressure.
URI: http://library.cbn.gov.ng:8092/jspui/handle/123456789/267
ISSN: 1957-2968
Appears in Collections:Economic and Financial Review



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