A review of Nigeria's exchange rate policies since deregulation in 1986

Abstract

This paper seeks to address the reasons for the failure of foreign exchange policies in Nigeria in achieving targets since 1986, and to advocate a likely path for policy. To achieve this, the paper is structured into five sections. Following this introduction, Section II reviews the growing literature on the choice of an exchange rate regime in a developing oil exporting countries. Section III examines the conduct and appropriateness of Nigeria's foreign exchange policies in the 1990's, while Section IV appraises the foreign exchange policies with a view to determining their efficacy. Section V summaries and concludes the paper and proffers some policy suggestions.