Comparative Analysis of Monetary Policy Shocks and Exchange Rate Fluctuations in Nigeria and South Africa

  • Sulaiman L. A. University of Kwazulu-Natal, Durban
  • Lawal N. A. Ekiti State University, Ado-Ekiti
  • Migiro S. O. University of Kwazulu-Natal, Durban
DOI: https://doi.org/10.22610/jebs.v9i6(J).2016
Keywords: Exchange Rate, Monetary Policy, Vector Autoregressive, Nigeria, South Africa

Abstract

The study examined a comparative analysis of monetary policy shocks and exchange rate fluctuations based on evidence from the two largest economies in Africa (Nigeria and South Africa) – from 1985 to 2015. Data were derived from various sources which include the National Bureau of Statistics, the Central Banks reports and the World Bank database. Vector Autoregressive (VAR) Analysis was used as the estimation technique. The results indicated that the foreign interest rate in South Africa had higher variations in the short-run. While in the long-run, foreign interest rate has higher percentage variations to exchange rate. In Nigeria the world oil price has the higher influence on exchange rate both in the short-run and longrun periods. Based on these results, the study then recommended that the monetary authorities and policymakers in both countries encourage external currency inflows into the economy.  

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References

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Published
2018-01-15
How to Cite
A., S. L., A., L. N., & O., M. S. (2018). Comparative Analysis of Monetary Policy Shocks and Exchange Rate Fluctuations in Nigeria and South Africa. Journal of Economics and Behavioral Studies, 9(6(J), 199-207. https://doi.org/10.22610/jebs.v9i6(J).2016
Issue
Vol 9 No 6(J) (2017)
Section
Research Paper

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