INTRODUCTION
It is already stated that money is a common demonstration in which the rate, relation value of good and services can be expressed.
Throughout history any community which form itself unto a nation for the purpose of self government immediately introduces its own distinction out of account- monetary out of account (legal Tender)
In the works of Endel (2000:277) “ In the international real no legal tender exist : values must be measure, accounts kept and payments made by conversion of one economy into another, thus conversion process is known as foreign exchange. It is an internationally convertible currencies (ude, 1996: 146)
Foreign exchange can be required by a country through to export of goods and serious, direct investment inflows, and goods. When foreign exchange expenditure lower than foreign exchange receipt, the surplus is added to reserves. The use reserves which are also savings from exchange farms time are hold by the authorities to finance short falls of foreign receipt and to safe guard the international value of the domestic company.
Whom there a disequlibilum on the foreign exchange market, which is consent by inadequate supply of foreign exchange reserves, may be exerted on foreign exchange reserve of the resources are not adequately, it will determinate into balances of payment problems, hence the need to manage a nations foreign exchange resource so to reduce the adverse effect of foreign exchange volatile.
The management of foreign exchange resources a further informed by the need to se an appropriate changing price in the foreign exchange market. Therefore, the act of foreign exchange management is a conserves attempt to harness foreign exchange resources, deploy
Them to service the economy so as to present the economy from experience stocking due to foreign exchange volatility.
he practice of managing the foreign exchange resources how therefore evolved broadly in line with globalization and liberalization of economics and financial markets.
Anifonose. 2001: 19) .
TABLE OF CONTENTS
Title page i
Approval pageii
Acknowledgementiii
Dedicationiv
Table of contentv
CHAPTER ONE
1.0Introduction1
1.1Background of the study2
1.2Statement of the problem3
1.3Objectives of the study4
1.4Significance of the study4
1.5Research questions5
1.6Hypothesis5
1.7Scope and Limitation7
1.8Definition of Terms8
Reference 9
CHAPTER TWO
2.0Literature Review10
2.1Definition of foreign Exchange10
2.2Management of Reserve flows13
2.3Management of reserve stocks21
2.4Foreign Exchange Problems24
2.5Foreign Exchange Control24
2.6Foreign Exchange Market IFEM26
2.7Foreign Exchange Management and
Parallel market – Bureaux De change (B.D.C)27
References32
CHAPTER THREE
3.0Research Methodology34
3.1Method of Investigation34
3.2Sources of Data34
3.3Population and sample size35
3.4Validity and reliability of research instrument37
Reference39
CHAPTER FOUR
4.0Data presentation and Analysis40
4.1 Data Analysis Techniques40
4.2Analysis of Questionnaires41
4.3Testing of Hypothesis 52
CHAPTER FIVE
5.0Summary of findings, conclusions and Recommendation65
5.1 Summary of findings 65
5.2Recommendations66
5.3Conclusion68
Bibliography 69