Get the complete project »
- The Complete Research Material is averagely 101 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
1.1 BACK GROUND OF STUDY
Right from time immemorial, a country’s exchange rate and balance of payment is usually regarded as the sum of indices by which a nation’s strength can be measured especially its economic strength. Paul (1996) defines balance of payments as an accounting record to all monetary transactions between a country and the rest of the world.
These transactions include payments for the country’s exports and imports of goods, services and financial capital, as well as financial transfer. It summarizes the international transaction for a specific period usually one year and is prepared in single currency for the country concerned. Nzotta (2004) defines foreign exchange as the value of foreign nation’s currency in terms of the home nation currency. In finance, the exchange rates (as also known as the foreign exchange rate or forex rate) between two currencies specify how much one currency is worth in terms of the other.
Devaluation is tall in a fixed exchange rate, which reduces the value of a currency in terms of other currencies. So what we are trying to do in this study is to determine how the reduction value of a currency with respect to the currency of another country affect the record of all monetary transactions between a country
and another, whether visible or invisible in a period of time. This is very important because no nation can exist on its own no matter how independent or self-sufficient it can be, it is important to have a relationship with other nations which can be characterized by goods and services going one way and foreign exchange going the other way. When accessing the nation involved, a record of gains and losses may have been kept. As such a nation’s foreign exchange and balance of payments can help slowdown, accelerate or decelerate walking growth progress and development. This will also have a positive or negative effect on the citizens since it deals mainly with economic relations.
Our nation Nigeria is currently facing serious problems regarding its foreign exchange rating (which is very low in comparison to other countries) and it’s Balance of payment which is clearly in disequilibrium and in a deficit. As a result of this the government is retrogressing and the citizens clearly suffering.
It is in a bid to discover why this is so and how this can be solved that this study as pertinent.
1.2 STATEMENT OF THE RESEARCH PROBLEM
Foreign exchange and balance of payment are the key factors of a nation’s life. They are also factors to look into when comparing a country’s relationship with other nations. These factors directly or indirectly affect a host of other factors
which are of severe importance in any nation. Consequently these factors can be seen as essential to the growth and development of the nation.
Currently these two factors can be said to have crippled the Nigeria economy and made life uncomfortable and unbearable for it citizens. These factors have brought the country to a level where growth and development appear to be an illusion.
Currently the nation’s exchange rate has fallen so low due to unfavorable nature of the competing power of the nation’s currency with foreign currencies of the world. Our economy has been trying to resolve the problem of external and internal balance, which has manifested in disequilibrium in our balance of payment and causing us a balance of payment deficit.
Much controversy had also been degenerated by the devaluation of our Naira (the national currency). Relevant literature and opinion on this issue are of the view that exchange rate policy plays an important role in maintenance of internal and external balance, on the other hands, other writers argued that devaluation is not the best policy for the less developed country because of many diverse results.
1.3 RESEACH QUESTION
This work is guided by the following research questions:
1. How does exchange rate affect the Nigerian Balance of payment?
2. How can the Nigerian Balance of payment position be improved?
1.4 OBJECTIVES OF THE STUDY
The general objective of this study is to examine the effect of exchange rate on the balance of payment of a nation with special reference to Nigeria. The specific objectives are to:
1. Evaluate the impact exchange rate on the Nigeria balance of payment.
2. Recommend ways of improving Nigerian Balance of payment positions.
1.5 RESEARCH HYPOTHESIS
Hypothesis will be tested in other to allow success of this work. The hypothesis includes;
1. There is no significant relationship between exchange rate and balance of payment (BOP) in Nigeria.
1.6 SCOPE OF STUDY
This study is limited to exchange rate and its effect on balance of payment with reference to the Nigeria economy. It covers a period of 40 years i.e from 1970 to 2010.
1.7 SIGNIFICANCE OF STUDY
The exchange rate and balance of payments of any nation are the heart and foundation of any governments’ development. These are very controversial factors that are not doing well in Nigeria. Naturally, since our economy is import-dependent and as such dependent on other nations, this affects us greatly especially
since foreign involvement and foreign exchange is involved in every sector of the economy. It is the significance of this study therefore; to make known the relationship between exchange rate and balance of payments, policy implications and recommendations which will be of immense help to policy makers and balance of payments, and government especially as regard to the transaction of the exchange rate and balance of payment in Nigeria. It is also of importance to students and lecturers and the entire public who is interested in the subject matter and its utilization in whichever way.
You either get what you want or your money back. T&C Apply
Share a Comment
You can find more project topics easily, just search
SIMILAR ECONOMICS FINAL YEAR PROJECT RESEARCH TOPICS
» ABSTRACT The divergence between agricultural trade intensity (ATI) and food security in Nigeria suggests that the linkage is ambiguous. Illustratively...Continue Reading »
116 pages | 48 hits | Source: ECONOMICS
» Abstract This study is on the impact of manufacturing sector on the Nigeria economic development. The total population for the study is 200 students o...Continue Reading »
53 pages | 84 hits | Source: ECONOMICS
3. GENDER ISSUES AND THE CHALLENGES OF RURAL DEVELOPMENT IN NIGERIA: A CASE STUDY OF IKWO LOCAL GOVERNMENT AREA OF EBONYI STATE 2006-2011» ABSTRACT This study investigated Gender Issues and the Challenges of Rural Development in Nigeria, a case study of Ikwo local government Area of Ebony...Continue Reading »
52 pages | 101 hits | Source: ECONOMICS
» CHAPTER ONE INTRODUCTION 1.1 Background to the study Scientific evidence suggests that the Universe is a very large expanse of space that contains sev...Continue Reading »
55 pages | 202 hits | Source: ECONOMICS
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Investment inflow, particularly foreign investment is perceived to have a positive impact on econ...Continue Reading »
81 pages | 297 hits | Source: ECONOMICS
» CHAPTER ONE INTRODUCTION 1.1 Background of the study The important role played by small scale industries in developing economics has been increasingly...Continue Reading »
57 pages | 289 hits | Source: ECONOMICS
» CHAPTER ONE INTRODUCTION 1.1 Background of Study Anambra State Governor, Peter Obi, and the Bishop of Anglican Diocese of Lagos Mainland, Rt. Rev. Ade...Continue Reading »
47 pages | 374 hits | Source: ECONOMICS
» CHAPETR ONE INTRODUCTION 1.1 Background of the study 1.2 Statement of problem 1.3 Objective of the study 1.4 Research Hypotheses 1.5 Significance of t...Continue Reading »
52 pages | 393 hits | Source: ECONOMICS
9. THE IMPACT OF ENTREPRENEURSHIP ON THE ECONOMIC GROWTH OF NIGERIA (A CASE STUDY OF SMEDAN ZONAL OFFICE, LAGOS)» ABSTRACT The study critically examined how Small and Medium Scale Enterprises can be effectively promoted and their contribution to the economy of Nig...Continue Reading »
52 pages | 197 hits | Source: ECONOMICS
» ABSTRACT What if the transportation section is stagnant, almost every section of any given economy will not perform well as expected. The importance o...Continue Reading »
59 pages | 97 hits | Source: ECONOMICS