Evaluation of the Effectiveness of the Country's Foreign Exchange Management Strategies

Abstract

The objective of this study was to analyze and evaluate the effectiveness of the country’s foreign exchange management strategies by determining the effect of continued depreciation of her currency on import and export bills and balance of payment equilibrium. In carrying out this research secondary data were collected for analysis and for testing various hypotheses that the strategy of allowing the fall in value of the naira through the market forces has not helped achieve the Macro-economic objective of reducing import bills, stimulating export and achieving overall balance of payment equilibrium. The hypotheses were tested using simple regression analysis and coefficient of determination.