IMPLICATION OF FOREIGN EXCHANGE MANAGEMENT AND GLOBAL ECONOMY DOWN TURN ON NIGERIAN ECONOMY (A CASE STUDY OF ECO BANK PLC ILORIN BRANCH)
TABLE OF CONTENT
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.0 Introduction and Background of the Study
1.1 Statement of the Problem
1.2 Aims and Objectives of the Study
1.3 Significance of the Study
1.4 Scope and Limitation of the Study
1.5 Definition of Key Terms
1.6 Plan of the Study
CHAPTER TWO: LITERATURE REVIEW
2.0 Literature Review
2.1 Theoretical Review
2.2 Conceptual Review
2.3 Empirical Review
2.4 Foreign Exchange in Context
2.5 The Rule of Central Bank of Nigeria (C.B.N) in Foreign Exchange Management
2.6 Policy Tool for Foreign Exchange Management
2.7 Global Financial Crisis and its Implication for the Nigeria’s
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Population of the Study
3.2 Data Collection
3.3 Data type/Source of Data
3.4 Sample and Sampling Techniques
3.5 Limitation of the Methodology
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION
4.1 Analysis of Questionnaire Administration
4.2 Interpretation of Result
CHAPTER FIVE: SUMMARY AND RECOMMENDATIONS
1.0 INTRODUCTION AND BACKGROUND OF THE STUDY
The need for foreign currency policy management arises only within the frame-work of countries engaged in international trade in contract to a closed economy, whose scope does not transcend its intra country trade transactions.
Foreign exchange is the means or ways of effecting payment for international transaction it can be acquired by a country through the export of goods and services, direct investment inflow drawn down on external loans aid or grants and it can also be expanded on settling international obligations. It is made up of convertible currencies that are generally accepted for the settlements of international trade and other external obligations. Such currencies include those of the group of seven (G7) industrialized countries made up of united state Dollar, British pound sterling, deutsche mark, Japanese yen, French, Italian and Canadian dollar.
Foreign exchange market is the 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. The objectives of the market include the provision of an avenue for the exchange of national currencies and the creation of an effective mechanism for the allocation of foreign exchange.
The foreign exchange market consist of the seller (supply) and buyer (demand) of foreign exchange. The major participant in foreign exchange market are the monetary authorities (Central Bank of Nigeria) authorized dealers (Bank) agents of the public sector, and the private sector as well as correspondent banks abroad. The supply of foreign exchange is derived from oil and non oil exports, capital by receipts include draw down on loans, expenditure of foreign tourist in Nigeria, repatriation of capital by Nigeria resident abroad as well as invisible receipt by the private sector. On the other hand the demand of foreign exchange consist of payments for important external debt service obligations personal home remittances (PHR) by foreign nations resident in the country, financial commitment of international organization and the country’s embassies abroad as well as other invisible out payment by the private sector.
1.1 STATEMENT OF THE PROBLEM
An important threat to effective foreign exchange policies and management in Nigeria, is the accumulation of foreign debt whose servicing have been conceiving a greater proportion of the dividing inflow at the detriment of developed programmes which require foreign for elicitation.
In consisting in policy formulation and implementation is another major problem. Frequent changes minister/secretariat witnessed change in policies and his affect performance and result.
Lack of monetary and fiscal policy on the part of government from 1970 to date, Nigeria has witnessed grass mis-management of respondences and budget indiscipline. A situation where budget is surplus and ends up in billion of naira deficit.
Narrow export based and low elasticity of export goods protectionist policies of the industrialized nation against export goods and development of syntheties (fibers) seem to have jointly conspired to frustrate the efforts to increase earning from export.
1.2 AIMS AND OBJECTIVES OF THE STUDY
The primary objectives of this research is to analyze the source of the foreign exchange and prefer solution on how it can be managed effectively to achieve the set of goals.
To achieve the set of goals or objectives, the following objectives have been specified:
- To review the existing literature, collect and collate information on sources of foreign exchange.
- To identify the sources of foreign exchange
- To identify the review loopholes and malpractice in foreign exchange management
- To analyze the ways that foreign exchange gets to the ultimate users.
- To determine the effects of foreign exchange mis-management
- To recommend measure to take to improve the foreign exchange management.