Impact of Monetary Policy on Exchange Rate Stability in Nigeria (Published)
This study investigates the impact of interest rates, money supply, and Central Bank reserves on exchange rate stability in Nigeria. Utilizing quarterly economic data from 1980 to 2023, sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin, the research employs a longitudinal survey design to assess the relationships between these monetary variables and exchange rate volatility. The findings indicate that interest rates, money supply, and Central Bank reserves significantly influence exchange rate fluctuations, with Central Bank reserves having the most substantial impact. Specifically, interest rates exhibit a moderate effect on exchange rate volatility (t = 3.513, p = .001, Beta = .342), while money supply also significantly affects exchange rate volatility (t = 2.713, p = .010, Beta = .305). Central Bank reserves, however, have the most pronounced impact (t = 4.141, p = .000, Beta = .467). These results highlight the critical role of monetary policy in maintaining exchange rate stability. The significant positive relationship between interest rates and exchange rate volatility suggests that monetary authorities should carefully consider the ramifications of interest rate adjustments. Similarly, the influence of money supply underscores the need for meticulous management to prevent destabilization. Robust Central Bank reserves emerge as a crucial buffer against exchange rate fluctuations, emphasizing the importance of effective reserve management policies. The findings provide actionable insights for policymakers aiming to enhance exchange rate stability through strategic interest rate policies, careful money supply management, and maintaining adequate Central Bank reserves.
Keywords: Central Bank of Nigeria., Economic Management, Exchange Rate Volatility, Interest rates., Monetary Policy, Money Supply, central bank reserves, exchange rate stability
Bank Capitalization and Performance in Nigerian Banking Industry (1986-2006): Empirical Evidence (Published)
This study investigates the impact of shareholders’ fund on bank performance in the Nigerian deposit money banks (formerly known as commercial banks- 1986-2006). The study captured their performance indicators and employed cross sectional and time series of bank data obtained from Central Bank of Nigeria (CBN).The formulated models were estimated using ordinary least square regression method. The study identified a positive relationship between shareholders fund and bank loan. We also find that there is significant relationship between shareholders’ fund and banks’ liquidity, bank deposits, and bank loans. The efficiency of management measured by operating expenses is negatively related to return on capital. The implication of this study, among others, is that adequate shareholders fund can serve as a veritable stimulant in strengthening the performance of Nigeria deposit money banks and also heighten the confidence of customers especially in this era of global economic melt-down that has taken its toll in the Nigerian financial system.
Keywords: Buffer capital theory of capital adequacy, Central Bank of Nigeria., Deposit insurance theory, Expense theory
The Impact of Bank Capitalization in the Performance of Nigerian Banking Industry (1986-2006) (Review Completed - Accepted)
This study investigates the impact of shareholders’ fund on bank performance in the Nigerian deposit money banks (formerly known as commercial banks- 1986-2006). The study captured their performance indicators and employed cross sectional and time series of bank data obtained from Central Bank of Nigeria (CBN).The formulated models were estimated using ordinary least square regression method. The study identified a positive relationship between shareholders fund and bank loan. We also find that there is significant relationship between shareholders’ fund and banks’ liquidity, bank deposits, and bank loans. The efficiency of management measured by operating expenses is negatively related to return on capital. The implication of this study, among others, is that adequate shareholders fund can serve as a veritable stimulant in strengthening the performance of Nigeria deposit money banks and also heighten the confidence of customers especially in this era of global economic melt-down that has taken its toll in the Nigerian financial system.
Keywords: Buffer capital theory of capital adequacy, Central Bank of Nigeria., Deposit insurance theory, Expense theory