The Impact of Exchange Rate Fluctuations on International Trade Transactions in Nigeria Between [1980 – 2008]

Abstract

The method used in the collection of data for this research include information gotten from the responses of the questionnaires distributed. Also there were secondary data which are from books and magazines. There was analysis of the table involved. At the end of the study, some of the finding include that actually a remittance lag actually exists in the Nigerian financial system and that the fluctuating exchange rate has an effect on the country’s balance of trade. The recommendation include that external borrowing by, Nigeria should be in different currencies so as to offset exchange rate risks. There was also a recommendation that there should be the establishment of official help to reduce the variability and increase the incentives on exchange rates. In conclusion it was adjusted that Nigeria as a developing country and economy needs to grow and come out of the menace of chronic balance of payment disequilibrium which is one of the causes of inflation. This could only be achieved when there is adequate management of international trade and payment.