AN ANALYSIS ON THE PERSISTENT DEPRECIATION OF THE NAIRA IN THE FOREIGN EXCHANGE MARKETS CAUSES, EFFECTS AND SOLUTIONS

This work titled analysis of the persistent depreciation of the naira in the foreign exchange market: Causes, effects and solutions. Captures the performance of Nigeria economy in the face of the continuous depreciation of the naira. The major objective of the study is to determine the effects of the depreciation on Nigeria growth. The data to be used for this work is the secondary source of data due to the nature of the research. The constraints that will be encountered in the course of this study include: High cost of text books, transportation cost, time factor refusal of officials to offer their full support and co-operation. Findings also will show that some causes of depreciation of the naira value include undue dependence on the oil sector and deficit spending by the government. It is therefore to be recommended that there should be strict adherence to CBN’S monetary policy guidelines by both private and public sector. The monetary authorities should intervene periodically in the foreign exchange market to achieve strategic objectives.