Managing Foreign Exchange Rate Risks in Nigeria

This study was on managing the exchange rate risk in Nigeria. It sought to appraise the operations of the foreign exchange market in Nigeria in order to ameliorate the exchange rate risk available in the market. In order to achieve this objective, data were obtained from the CBN statistical bulletin. They were tabulated, analyzed and tested using Ordinary least square multiple regression statistical technique. Findings resulting from the test of data showed that there was a significant relationship between interest rate, exchange rate and the gross domestic product of Nigeria. Following the findings, it was recommended that the government should concentrate on policies that would standardize and raise money supply to the real sector that has the tendency to increase the volume of goods available for export and reduce demand for imports. Infant Nigerian produced goods should be given high priority. Measures that could stabilize the Nigeria currency should be pursued with vigor. The invisible hands should be allowed to interplay. The Naira currency should be stabilized at N80:$1