Exploring oil price—exchange rate nexus for Nigeria

Abstract

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Oil price shocks and exchange rate in Nigeria

“…In addition, oil price was found to be integrated of order one. This is consistent with the findings of Amano and van Norden (1998), Lizardo and Mollick (2010), Muhammad et al, (2011) and Adeniyi et al (2012). Thus, our result is consistent with the evidence of the non-stationary behavior of the exchange rate from the literature.…”

“…While some of the studies have found a positive relationship between oil price and exchange rate -oil price shock leading to appreciation - Olomola and Adejumo, 2006;Chen and Chen, 2007;Adeniyi et al, 2012;Amano and van Noden, 1998;Beckmann and Czudaj, 2012;Englama et al, 2010, Jebin and Osu, 2012, Nikbakht, 2009, others have reported a negative relationship -oil price shock leading to depreciation- (Akram, 2004;Ghosh, 2011;Huang and Guo, 2007;Muhammad et al, 2011) or non-existing relationship (Akram and Holter, 1996;Bjørvik et al, 1998;Buetzer et al, 2012).…”

“…These assumptions may likely yield biased estimates of oil price effects as. Past studies (Jebin and Osu, 2012;Englama et al, 2010;Aliyu, 2009, Muhammad et al, 2011Adeniyi et al, 2012;Ogundipe and Ogundipe, 2013;Salisu and Mobolaji, 2013) on Nigeria did not considered the differential effects of positive and negative oil price shocks on exchange rate. Allowance for oil price effects that separates positive and negative oil price shocks will enable the study account for major fluctuations in the exchange rate which have occurred within the context of exchange rate stabilization policy.…”

Maternal Mortality and Associated Obstetric Risk Factors at Mother and Child Hospitals, Ondo State, Nigeria

“…The role of oil price in explaining FOREX movement has been noted as far back as 1980s by scholars like Golub (1983) and Krugman (1983). Both authors found oil-exporting countries to experience FOREX appreciation during oil price rise, while there was FOREX depreciation during oil price falls (see Al-Mulali and Binti Che Sab (2012); Muhammad et al (2012)). The case was the reverse for oil-importing countries, where there was FOREX depreciation during oil price rise and FOREX appreciation during oil price falls.…”

Oil price and the development of financial intermediation in developing oil-exporting countries: Evidence from Nigeria

“…This question has not been answered. Specifically, while empirical studies on the impact of crude oil price on economic growth and macroeconomic performance in Nigeria exist (see Chuku, 2012;Iwayemi & Fowowe, 2011;Muhammad, Suleiman, & Kouhy, 2012;Omojolaibi, 2014;Omojolaibi & Egwaikhide, 2014), the influence of crude oil price on the development of financial intermediation has not been considered. Understanding the relationship between crude oil prices and financial intermediary development could have a significant impact on the formulation and implementation of macroeconomic policies targeting financial sector development.…”