BANK LIQUIDITY AND THE DEREGULATED FOREIGN EXCHANGE RATE IN NIGERIA

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dc.contributor.authorROBERT, KEMPADE MORUKU
dc.date.accessioned2014-03-11T09:19:59Z
dc.date.available2014-03-11T09:19:59Z
dc.date.issued1993-09
dc.descriptionPRESENTED TO THE DEPARTMENT OF BUSINESS ADMINISTRATION OF THE AHMADU BELLO UNIVERSITY ZARIA. MR. ROBERT KEMPADE MORUKU (G91 BA 7392). IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF MASTERS IN BUSINESS ADMINISTRATION (MBA). SEPTEMBER, 1993en_US
dc.description.abstractDeregulation of the naira exchange rate and the supplementary monetary policy regime were aimed at reducing the demand for foreign exchange and boosting non-oil exports. (CBN, 1992: No. 92/08; Abdullahi, 1987:59; FGN, 1988:21-23). An 'excess liquidity' in the banking system was said to be an obstacle to achieving the aims of the foreign exchange and monetary policies. (CBN, 1990: 32; Ntekop, 1992:21) Stabilization Securities were repeatedly issued on bank deposits to mop up the 'excess liquidity'. But this left in its wake high cost of funds, inflationary pressure, distress in the banking system, industry capacity under utilization, volatile exchange rate regime, and persistent demand pressure on the foreign exchange market. (Business Times, April 12, 1993; CBN Circ. 1/3/93; Nwankwo, 1983:44; Abdullahi, 1987: 63-65; Ahmed, 1993:23; CBN, 1991:66; Olekah, 1991). Thus this study was initiated to determine the cause - effect relationship between the liquidity in the banking system and the deregulated foreign exchange rate through the demand pressure on the foreign exchange market. A quasi-experimental design was developed and multiple regression and Pearsons (r) analyses were conducted on the data. The result of the analysis shows that there is no significant relationship between them. The demand pressure is inherent in the market itself and reflects the structural problems of the economy which are monocultrual and vulnerability to external shocks; of industry that is import-dependent, and import-substitutional. We suggest a systematic reduction in the demand for foreign exchange through a reduction for the need for foreign exchange by the determined sourcing of local inputs since the demand for foreign exchange is a derived demand for imported inputs. We a l s o recommend an i n t e r im dual exchange r a t e system to be r e p l a c e d in the long-run with a f l o a t i n g , market-determined exchange r a t e systemen_US
dc.identifier.urihttp://hdl.handle.net/123456789/3686
dc.language.isoenen_US
dc.subjectBANKen_US
dc.subjectLIQUIDITY,en_US
dc.subjectDEREGULATED,en_US
dc.subjectFOREIGN,en_US
dc.subjectEXCHANGE,en_US
dc.subjectRATE,en_US
dc.subjectNIGERIAen_US
dc.titleBANK LIQUIDITY AND THE DEREGULATED FOREIGN EXCHANGE RATE IN NIGERIAen_US
dc.typeThesisen_US
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