Brief Introduction

Foreign exchange is the means of payment for international transactions and it is made up of convertible currencies that are generally acceptable for the settlement of international trade and other external obligations.

The foreign exchange market is an arrangement or medium of interaction between the sellers and buyers of foreign exchange in a bid to negotiate a mutually acceptable price for the settlement of international transactions (ile 1999: 325)

Afolabi (1999) defined the exchange rate as the price of one currency in terms of the other. In other words, it is the rate at which one currency will exchange for another. In the pre-Babangida administration years, the Nigeria currency was above the dollar and on par with the pound.

However the naira has depreciated in value to a great extent since 1986 with the introduction of the structural adjustment programme (SAP), under the Babangida administration since the introduction of SAP in 1986, exchange management has been at the core of macroeconomic policy. The overriding objective has been to have a realistic and stable exchange rate consistent with the internal rate of the naira and to reduce the economy’s dependence on the external sector.

Table of Content

CHAPTER ONE
INTRODUCTION
1.1 Background of study
1.2 Statement of problem
1.3 Purpose of study
1.4 Research questions
1.5 Statement of hypothesis
1.6 Significant of the study
1.7 Scope and limitation of the study
1.8 Definition of terms.
CHAPTER TWO
REVIEW OF RELATED LITERATURE.
2.1 Nominal and real exchange rates.
2.2 The foreign exchange market in Nigeria since 1986.
2.3 Causes of the persistent depreciation of the naira.
2.4 Effects of the depreciation of the naira on the economy.
2.5 Measures to strengthen the value of the naira.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Area of study
3.2 Instruments of data collection
3.3 Validation of instrument
3.4 Method of data analysis
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
CHAPTER FIVE.
FINDINGS, CONCLUSION, AND RECOMMENDATION
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendations
BIBLIOGRAPHY
APPENDIX.