Migrant Remittances and Naira Price of the Dollar (Published)
This study investigated the possibility that the large amount of diaspora dollar remittance to the Nigeria economy could positively impact the naira price of the dollar (exchange) rate. Our methodology employed the Johansen cointegration test (JCT).The trace statistics result shows the null hypothesis that: there is no cointegration is rejected. Thus the trace test shows, there is at least one co-integrating vector. Furthermore, the output of the Max-Eigen statistics indicates that there is a strong evidence to reject the null hypothesis of no cointegration, implying there is long run relationship among the variables. Though diaspora remittance (logrem) has positive and significant long run effect on the domestic price of the naira (logexch) to the dollar, its coefficient (3.220574) is not sufficiently large when compared with oil price (24.56832) (logoilprice). We therefore conclude that though diaspora remittances influences the domestic naira price of the dollar, its impact on the domestic on the wider exchange rate market is insignificant.
Keywords: Exchange Rate, Foreign Reserves, Migration, diaspora remittance