AN EVALUATION OF THE RE-INTRODUCED DUTCH AUCTION SYSTEM AS A MEANS OF DETERMINING A REALISTIC AND STABLE VALUE OF THE NAIRA

Simple item page
dc.contributor.authorUMAR, AUWAL
dc.date.accessioned2014-02-10T11:46:41Z
dc.date.available2014-02-10T11:46:41Z
dc.date.issued2006-02
dc.descriptionA THESIS SUBMITTED TO THE POSTGRADUATE SCHOOL IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE IN ECONOMICS DEPARTMENT OF ECONOMICS FACULTY OF SOCIAL SCIENCE AHMADU BELLO UNIVERSITY ZARIA. FEBRUARY,en_US
dc.description.abstractIn 2002, the Central Bank Nigeria (CBN) re-introduced the Dutch Auction System (DAS) which was earlier introduced in 1987 and 1990 in Nigeria to eliminate distortions, speculation, opportunism and sharp practices. It appears that between 1986 and 2002 in spite of the various exchange rate management systems, the goals of efficient and stable exchange rate were elusive. This study uses data on 354 DAS sessions to evaluate the effects of the DAS in generating efficiency and stability of the values of the Naira. Trend Analysis and ADF tests were used to evaluate stochastic properties of the DAS series. Foreign exchange spreads were estimated and their trend evaluated to determine effects on efficiency. GARCH models of Demand and Marginal Price were estimated to analyze stability. The study found that the DAS series exhibited different patterns of volatility, while the DAS spread declined, the parallel exchange rate premium increased and both demand and marginal rate were volatile. Thus, the DAS seems not to have made the foreign exchange more efficient or stable. Since March, 2006 the Central Bank of Nigeria has replaced the old retail DAS in favor of the wholesale DAS for the achievement of efficiency and stability of the Naira exchange rate. However, while the exchange rate spread has declined, this seems to have been brought about by increase in supply of foreign exchange by the CBN. It is not clear if the seeming convergence in exchange rate is sustainable. The study therefore, recommends further investigation into the recent phase of the DAS, focusing on the problems of sustainability. AUWAL, Umar –ABU,Zariaen_US
dc.identifier.urihttp://hdl.handle.net/123456789/947
dc.language.isoenen_US
dc.subjectEVALUATIONen_US
dc.subjectRE-INTRODUCEDen_US
dc.subjectDUTCHen_US
dc.subjectAUCTION SYSTEMen_US
dc.subjectMEANSen_US
dc.subjectDETERMININGen_US
dc.subjectREALISTICen_US
dc.subjectSTABLEen_US
dc.subjectVALUEen_US
dc.subjectNAIRAen_US
dc.titleAN EVALUATION OF THE RE-INTRODUCED DUTCH AUCTION SYSTEM AS A MEANS OF DETERMINING A REALISTIC AND STABLE VALUE OF THE NAIRAen_US
dc.typeThesisen_US
Files
Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
MAN EVALUATION OF THE RE-INTRODUCED DUTCH AUCTION SYSTEM AS A MEANS OF DETERMINING A REALISTIC AND STABLE VALUE OF THE NAIRA.pdf
Size:
609.09 KB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.58 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
SOCIAL SCIENCES