+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

MANAGEMENT OF FOREIGN EXCHANGE IN NIGERIA BY CBN

  • Type:Project
  • Chapters:5
  • Pages:66
  • Format:Microsoft Word
(Banking and Finance Project Topics & Materials)

MANAGEMENT OF FOREIGN EXCHANGE IN NIGERIA BY CBN (1959- JULY, 2004)

ABSTRACT

This thesis deals with foreign exchange management in Nigeria by the Central Bank of Nigeria (CBN) from 1959 to July 2004. the need to manage foreign exchange became imperative as a result of dis equilibrium in the foreign exchange market caused by inadequate supply of foreign exchange management is a conscious attempt to harnesses foreign exchange resources deploy them to service the economy so as to prevent the economy from experiencing shocks due to foreign exchange volatility.

            The central focus of thesis is to examine how CBN through its policy measures manages foreign exchange in the country. To carryout this thesis, the respondent makes use of both primary and secondary data. Questionnaires were in line with the objective of the study.

            Based on the objective of the study the findings reveal that the role of CBN in managing foreign exchange is not impressive. The impact of exchange rate policy in managing foreign exchange is not encouraging, the activities of panel market operators negatively affect the effective operation of the foreign exchange management  . conclusion and recommendations were made in line with the findings.

TABLE OF CONTENT

CHAPTER ONE

1.0              INTRODUCTION

1.1              BACKGROUND OF THE STUDY

1.2              STATEMENT OF THE PROBLEM

1.3              OBJECTIVES OF THE STUDY

1.4              RESEARCH QUESTIONS

1.5              RESEARCH HYPOTHESIS

1.6              SIGNIFICANCE OF THE STUDY

1.7              SCOPE LIMITATION AND DELIMITATION

1.8              DEFINITION OF TERMS

REFERENCE

CHAPTER TWO

2.0              LITERATURE REVIEW

TABLE 4.3.              DEFINTION OF FOREIGN EXCHANGE

2.2              MANAGEMENT OF RESERVE FLOURS

2.3              EXCHANGE RATE MANAGEMENT

2.4              TRADE AND EXCHANGE CONTROL

2.5              ADMINISTRATIVE CONTROL

2.6              MANGEMENT OF RESERVE STOCKS

2.7              LIQUIDITY AND SECURITY

2.8              ASSETS DIVERSIFICATION

2.9              FOREIGN EXCHANGE  PROBLEMS

2.10          FOREIGN EXCHANGE CONTROL

2.11          FOREIGN EXCHANGE MARKET – IFEM

REFERENCE

CHAPTER THREE

3.0              RESEARCH DESIGN & METHODOLOGY

TABLE 4.3.              RESEARCH DESIGN

3.2              SAMPLE SIZE

3.3              POPULATION SIZE

3.4              SIMPLES AND SAMPLING TECHNIQUES

3.5              SOURCES OF DATA

3.6              DATA LOCATION

3.7              METHOD OF DATA PRESENTATION

3.8              METHOD OF DATA ANALYSIS.

CHAPTER FOUR

4.0              DATA PRESENTATION AND ANALYSIS

TABLE 4.3.              DATA ANALYSIS TECHNIQUES

4.2              ANALYSIS OF THE QUESTIONNAIRES

4.3              TESTING OF HYPOTHESIS

4.4              OPERATION ASSUMPTION

4.5              DESCISION RULE

CHAPTER FIVE

5.0              SUMMARY OF FINDINGS, RECOMMENDATION AND CONSLUSIONS

TABLE 4.3.              SUMMARY OF FINDINGS

5.2              RECOMMENDATIONS

5.3              CONCUSLION

BIBLIOGRAPHY

LIST OF TABLE

TABLE 4.2.1  The role of central Bank of Nigeria

TABLE 4.2.2  Impact of foreign exchange rate. POLICY

TABLE 4.2.3  Allocation of foreign exchange by CBN

TABLE 4.2.4  Effect of the activities of parallel market operators

TABLE 4.2.5  Impact of foreign exchange control measures.

TABLE 4.3.1  Roles of Central Bank in Nigeria.

TABLE 4.3.1  A observed and expected frequency

TABLE 4.3.2  Impact of foreign exchange rate policy

TABLE4.3                  Observed and expected frequency.

TABLE 4.3.3  Effect of the activities of parallel market operators

TABLE 4.3.3.c           Observed and expected frequency

TABLE 4.3.4 Impact of foreign exchange control measures

TABLE 4.3.4  Observed and expected frequency

TABLE 4.3.5              Effect of redirection of funds on foreign exchange management

TABLE 4.3.5 E           Observed and expected frequency.

LIST OF  FIGURES

Fig. 4.2.1                     Pie chart showing the role of CBN in managing foreign exchange.

Fig 4.2.2                      Bar chart showing the impact of foreign exchange rate policy in managing foreign exchange.

Fig 4.2.3                      bar chart illustrating the allocation of foreign exchange by CBN.

Fig 4.2.4                      Pie chart illustrating the effects of activities of parallel market operators on foreign exchange management.

Fig 4.2.5                      bar chart illustrating the impact of foreign exchange control measures in managing foreign exchanges

Fig 4.2.6                      Pie chart show the effect of redirection of funds on foreign exchange management.

PROPOSAL

This thesis deals on the management of foreign exchange in Nigeria by central Bank of Nigeria; (CBN) from 1959 to July 2004.

In carrying out this thesis the researcher examine how CBN through the policy measures manages foreign exchange in the country.

That is why this thesis is divided into five chapters, chapter one introduce the , the background, the problems, the objectives, significance if the study and limitation.

Chapter two is a direct attempt to review the related literature, elimination of foreign exchange.

Chapter three deals with the research methodology and design adopted for presentation of information.

Chapter four is concerned with the presentation of data, data analysis techniques and test of hypothesis to enable one provide answers to related questions

Chapter five summarizes the findings makes conclusion and recommends solutions to the problem under study.

CHAPTER ONE

1.0              INTRODUCTION

1.1       BACKGROUND OF THE STUDY

It has already been stated that money is a common denomination in which the rate relative value of goods and services can be expressed.

            Throughout history any community which form itself into a nation for the purpose of self-government immediately introduce its own distinctive unit of account –monetary unit of account (Legal tender)

            In the words or (Obaseki 1991:15) “ in the international reaches no legal tender exists value must be measured, accounts kept and payments made by conversion process is known as foreign exchange.

            Foreign currency, otherwise known as foreign exchange, is one of the scare resources particularly in developing economy. Unless the management of this scarce resources is properly articulated in terms of its revenue generation and expenditure, or unknown and out now a country runs the risks of balance of trade or balance of payment problems. Moreover, in order that a country may optimize the advantages of international trade, it become imperative for that country to institute appropriate foreign exchange management.

            The practice of managing the foreign exchange resources has, therefore evolved broadly in line with the globalization  and liberization of economics and financial markets” (Anfourose 1997:19)

1.2              STATEMENT OF THE PROBLEM

The primary objective of foreign exchange management is to reduce foreign exchange instability and its adverse effect on the economy. Despite government effects to achieve this objective though the Central Bank of Nigeria (CBN), foreign exchange (Monitoring and miscellaneous provisions) decree No.17 promulgated in 1995 and the introduction of the use of forms A and M, a handled problems are still identified with foreign exchange operation in Nigeria.

            There problem include

i.                    Inadequate inflow of foreign exchange

ii.                  Balance of payments problems

iii.                Debt services burden

iv.                Continuous depreciation in the value of the naira.

v.                  Problem of funding sectorial allocation of foreign exchange in the foreign exchange market.

1.3              OBJECTIVE OF THE STUDY

The objective of the study are

1.         To examine the roles of the Central Bank of Nigeria in managing the countries foreign exchange.

2.         To examine the impact of foreign exchange rate policy in the foreign exchange management.

3.         To examine the effect of the activities of parallel market on the foreign exchange management.

4.         Examine the problems facing foreign exchange management in Nigeria.

1.4              RESEARCH QUESTION

i.                    How can we determine the role of the central bank of Nigeria in managing the country’s foreign exchange?

ii.                  Is the impact of foreign exchange rate policy been encouraging?

iii.                Is the activities of the parallel market operators negatively affect the effective operation of the foreign exchange management in Nigeria?

1.5              RESEARCH HYPOTHESIS

1.         Ho:      The role of Central bank of Nigeria in managing the countries foreign exchange is not impression.

Hi:       The role of the CBN in managing the countries foreign exchange

2.         Ho: The impact of exchange rate policy in the management of foreign exchange  in Nigeria not admirable

            Hi: The impact of exchange rate policy in the management of foreign exchange  in Nigeria is admirable

3.         Ho:      The activities of parallel market operators negatively affect the effective operation of the foreign exchange management in Nigeria.

Hi:       The activities of parallel market operators positively affect the effective operation of the foreign exchange management in Nigeria.

1.6       SIGNIFICANCE OF THE STUDY

I.                   This work is in partial fulfillment of the requirement for the award of higher National Diploma (HND) in Banking and finance.

II.                the work will be of immense help to future researchers who will make their own investigation into this subject area.

III.             The work will CBN regulate the activities of the bank with their in getting them to find foreign exchange market adequately, increase foreign exchange inflow and balance of payment, determine a realistic exchange rate, and adequate foreign exchange control system.

1.7              DEFINITION OF TERMS

FOREIGN EXCHANGE MARKET: is an arrangement which exists to assist buyers and sellers of foreign exchange to enter into contract of buying and selling, unlike other markets where money exchange for good and services, in the foreign exchange market, money exchange for money; one currency is being exchanged for another.

EXCHANGE RATE:           This the number of units of one currency which exchange for a given number of unit of another.

FOREIGN EXCHANGE RESERVE: These are foreign currencies had by the control Bank of Nigeria (CBN).

MANAGEMENT OF FOREIGN EXCHANGE IN NIGERIA BY CBN
Share This

Details

Type Project
Department Banking and Finance
Project ID BFN0767
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 66 Pages
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Banking and Finance
    Project ID BFN0767
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 66 Pages
    Format Microsoft Word

    Related Works

    ABSTRACT This thesis deals with foreign exchange management in Nigeria by the Central Bank of Nigeria (CBN) from 1959 to July 2004. the need to manage foreign exchange became imperative as a result of dis equilibrium in the foreign exchange market caused by inadequate supply of... Continue Reading
    Management of risk is one of the essence of the business of banking. The extent to which risk management is being managed or controlled could either be said to be an art or science. Indeed a judicious mixture of both could form the subject of an interesting if... Continue Reading
    ABSTRACT This research work investigates the impact of foreign exchange management by the monetary authority of Nigeria, the Central Bank on the Nigerian economy using the ordinary least squares regression technique for time series data spanning 1981 to 2007. From the findings of this research work, it was observed that the success of foreign... Continue Reading
    ABSTRACT The remote cause of the problem that necessitated this study in perhaps, the chronic balance of payment deficit which the country has been experiencing since independent. An attempt to solve the problem through the use of exchange control measure ha not... Continue Reading
    ABSTRACT In every part of the world, financial reports form the basis of communicating the activities and performance of business entities to owners and outsiders. But it is rather unfortunate that most of these financial reports do not meet the need of users as a result of different accounting bodies with varying standards and codes. Most reports... Continue Reading
    (A CASE STUDY OF CENTRAL BANK OF NIGERIA, ENUGU BRANCH) ABSTRACT         The currency of a nation is made to appreciate. Is this appreciation made at the expense of the foreign market determinant? Or is it as a result of the country’s effort?         It is the... Continue Reading
    ABSTRACT This Project is on the national effects of Exchange Rate changes on foreign debt services on Nigeria. It run over a time series of nine years and examines how fluctuations on exchange rate has made it difficult for the country’s debt services. The method... Continue Reading
    ABSTRACT This Project is on the national effects of Exchange Rate changes on foreign debt services on Nigeria. It run over a time series of nine years and examines how fluctuations on exchange rate has made it difficult for the country’s debt services.... Continue Reading
    CHAPTER ONE INTRODUCTION 1.0 BACKGROUND OF THE STUDY 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... Continue Reading
    CHAPTER ONE INTRODUCTION 1.0  BACKGROUND OF THE STUDY 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... Continue Reading