Crude Oil Price and Exchange Rate Nexus: An Ardl Bound Approach - Open Access Library Journal

OALibJ > Vol.7 No.3, March 2020

Open Access Library Journal

Volume 7, Issue 3 (March 2020)

ISSN Print: 2333-9705 ISSN Online: 2333-9721

Google-based Impact Factor: 0.73 Citations

Crude Oil Price and Exchange Rate Nexus: An Ardl Bound Approach ()

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DOI: 10.4236/oalib.1106072 953 Downloads 2,654 Views Citations

Author(s)

Kabiru Saidu Musa^1*, Rabiu Maijama’a^1,2, Nafisa Muhammed^1,3, Asma’u Usman^1,4

Affiliation(s)

¹M.Sc. Economics Students, Bauchi State University Gadau, Yuli Campus, Bauchi State, Nigeria.
²NNPC Retail Sales Representative, Nigeria National Petroleum Corporation, NNPC Tower, Central Business District, PMB 190, Garki, Abuja, Nigeria.
³Central Bank of Nigeria (CBN) Gombe Branch, Gombe State, Nigeria.
⁴Federal Radio Corporation (FRC) Bauchi Branch, Bauchi, Nigeria.

ABSTRACT

This study investigates the impact of crude oil price on exchange rate in Nigeria using an autoregressive distributed lag (ARDL) model covering the period from 1983-2017. The results showed that crude oil price has negative and significant impact on exchange rate in both the long run and the short run whereas oil revenue and Gross Domestic Products have significant positive impact on exchange rate also in both the long-run and the short-run periods. The findings suggested that crude oil price which is the focal point of the study, could affect exchange rate in the both the long-run and the short-run. Therefore the study concludes that crude oil price, oil revenue and Gross domestic Products are among the determinants of exchange rate in Nigeria.

KEYWORDS

Crude Oil Price, Exchange Rate, GDP, Oil Revenue, ARDL Approach and VECM Granger Causality

Share and Cite:

Musa, K. , Maijama’a, R. , Muhammed, N. and Usman, A. (2020) Crude Oil Price and Exchange Rate Nexus: An Ardl Bound Approach. Open Access Library Journal, 7, 1-24. doi: 10.4236/oalib.1106072.

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