INTRODUCTION
Foreign exchange is the means of payment for international transaction. It is made up of convertible currencies that are generally accepted for the settlement of international trade and other external obligation. Just like every other commodity, a market is established which works more like any other market having a supply curve, a demand curve and an equilibrium price and quantity. There are also conditions which are held constant (creteris paribus). When these conditions change, the curve shift and there is a change in the equilibrium price quantity. This market for currencies is known as the foreign exchange market.
The foreign exchange market according to the central bank of Nigeria is the medium of interaction between the sellers and buyers of foreign exchange. The seller of foreign exchange constitutes the supply while the buyers of foreign exchange constitutes its demand. The supply of foreign exchange is derived from oil exports, non-oil export, expenditure of foreign tourist in Nigeria, capital repatriation by Nigerians resident abroad etc.
The demand for foreign exchange on the other hand consist of payments for imports, financial commitments to international organizations, external debt service obligations etc.
Before 1958, when the central bank was established and the enactment of the exchange control act of 1962, foreign exchange was earned by the private sectors and held in balances abroad by commercial banks which acted as agents for local exporters. Another feature of this period was that agriculture exports contributed the bulk of foreign exchange receipts. The fact that the British pound sterling was at par with the Nigerian pound sterling with easy convertibility delayed the establishment of an active foreign exchange market.
TABLE OF CONTENTS
Title Page
Approval Page
Certification
Dedication
Acknowledgements
Abstract
Table of Contents
CHAPTER ONE
Introduction
1.1Background of the study
1.2Statement of Problem
1.3Objectives of the study
1.4Research Questions
1.5Hypothesis
1.6Significance of the Study
1.7Limitation of the study
1.8Definition of Terms
Reference
CHAPTER TWO
2.0Review of related literature
2.1Over view of Exchange
2.2Over view of exchange rate fluctuation
2.3An overview of the impact of foreign exchange rate fluctuation on naira
2.4Basic Exchange Rate Concepts
2.5Buying and Selling Rates
2.6Real Exchange Rate (RER)
2.7The Impact of exchange rate fluctuation on international trade
2.8Control measures
2.9Summary
Reference
CHAPTER FOUR
4.0presentation and Analysis of data
4.1presentation of data
4.2test of hypothesis
4.3 Discussion of result
CHAPTER THREE:
RESEARCH DESIGN AND METHODOLOGY
3.1Research Design
3.2Area of Study
3.3Sources of Data
3.4Population of the Study
3.5Sample Size Determination and Sampling Techniques
3.6Methods of Data Collection
3.7Validity of the Instrument
3.8Reliability of Instrument
3.9Methods of Data Presentation and Analysis
CHAPTER FIVE
5.0summary conclusion and Recommendations
5.1summary of finding
5.2conclusion
5.3recommendations
Bibliography
Appendix