Currency Devaluation and Fiscal Adjustment in Nigeria

Chinedum, Ezeh; Kenneth, O.

doi:10.9734/bjemt/2016/25328

Cited by 3 publications

(2 citation statements)

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“…В то же время, официальная отчетность по фонду Министерством финансов предоставляется в тенге, из-за чего большое влияние на нее оказывает курсовой фактор. Изменение курса тенге к доллару США иногда приводит к ощутимым сдвигам в тенговой отчетности -укрепление курса тенге при относительной стабильности валютного размера активов фонда может привести к их снижению в тенге -такая ситуация наблюдалась, например, в первом полугодии 2018 г., что вызвало волну спекуляций об огромных убытках фонда (785 млрд тенге 13 ), которые, на самом деле были следствием укрепления курса казахстанской валюты к доллару, из-за которого тот же объем долларовых активов в тенге стал исчисляться меньшей суммой. Курсовой фактор может работать и в обратную сторонуснижение курса тенге способно компенсировать уменьшение долларового объема Национального фонда в тенговой отчетности.…”

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Investment Activity of the Public Institutions in Foreign Financial Markets as a New Factor in the Tenge Exchange Rate

Dodonov¹

2020

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The situation on the foreign exchange market of Kazakhstan over the past few years has been characterized by ambiguous trends and increased devaluation expectations. Problems in the field of exchange rate formation include the adequacy of the level of the tenge exchange rate, its weak predictability, as well as the loss of connection with objective factors that determined the course dynamics over a long period. The increase in uncertainty in the foreign exchange market of Kazakhstan coincided in time with the aggravation of problems in the field of public finance, in particular, with the period of progressive reduction in the volume of the National Fund, as well as the need to ensure the return on pension assets in the face of instability of the national currency. This coincidence suggests that it is the investment activity of the largest state institutions represented by the National Fund, the ENPF and the need to ensure their acceptable profitability in difficult external conditions that have become a new factor that has a serious impact on the currency market of Kazakhstan. This hypothesis is considered in the article, and for the purpose of its assessment, the relationship between the key parameters of the activity of these institutions, their profitability and the tenge exchange rate over the past few years is analyzed.

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Section: таблицаunclassified

Investment Activity of the Public Institutions in Foreign Financial Markets as a New Factor in the Tenge Exchange Rate

Dodonov¹

2020

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“…Currency devaluation is a stabilization policy measure that some countries employ to improve the competitive advantage situation of their economy by reducing imports and encouraging exports of goods and services with the aim to positively impact the balance of payments and restore economic growth [1][2][3]. Currency devaluation is a highly controversial issue in many countries.…”

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The Effects of Currency Devaluation on the Bilateral Trade Balance of Sudan: Cointegration and Error-Correction Modeling

Ibrahim

Bashir

2023

JEMT

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The purpose of this research paper is to investigate the effects of exchange rate, income and money supply on the trade balance of Sudan over a fifty-year period from 1970 to 2020. The empirical model for this investigation is developed using a cointegration approach and error-correction technique to specifically examine the effects of currency devaluation on the trade balance of Sudan with its major partners. The bounds test shows that the variables of interest are bound together in the long-run. The associated equilibrium correction is significant, thus confirming the existence of a long-run relationship. Moreover, to analyze the dynamic interactions of the variables included in the estimated model, variance decomposition is employed. The study results from the variance decomposition show that innovations in foreign income contribute highly to the forecast error variance of the trade balance compared with other explanatory variables in the short-run. In contrast, the domestic money supply contributes highly to the trade balance compared with other variables in the long-run. A key finding of the study suggests that the devaluation of Sudan’s currency is not an appropriate step toward improving the country's trade balance position.

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Re-Examining the Relationship between Inflation, Exchange Rate and Economic Growth in Nigeria

Ahmed¹,

Daniel²,

Kayode³

2018

IJAR

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This paper reexamining the relationship between inflation, exchange rate and economic growth in Nigeria. The study used annual time series data from 1981 to 2016 sourced from Central Bank of Nigeria Statistical Bulletin (CBN). The study employed ARDL Model to test for short and long run relationship among the variables. The empirical results show that there is long run relationship among the variables. The short run result reveals that only inflation has a negative relationship with economic growth in Nigeria. The indirect relationship between inflation and economic growth requires urgent attention by government because variation in exchange rate translate to export and import of goods and services will be associated with inflation as the fluctuation in exchange rate leads to upward and downward trend in price.

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Currency Devaluation and Fiscal Adjustment in Nigeria

Cited by 3 publications

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Investment Activity of the Public Institutions in Foreign Financial Markets as a New Factor in the Tenge Exchange Rate

Investment Activity of the Public Institutions in Foreign Financial Markets as a New Factor in the Tenge Exchange Rate

The Effects of Currency Devaluation on the Bilateral Trade Balance of Sudan: Cointegration and Error-Correction Modeling

Re-Examining the Relationship between Inflation, Exchange Rate and Economic Growth in Nigeria

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