Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144778
Authors: 
Doguwa, Sani I.
Year of Publication: 
2014
Citation: 
[Journal:] CBN Journal of Applied Statistics [ISSN:] 2476-8472 [Publisher:] The Central Bank of Nigeria [Place:] Abuja [Volume:] 5 [Year:] 2014 [Issue:] 2 [Pages:] 1-23
Abstract: 
This paper examines the existence, causes and effects of currency substitution in Nigeria by estimating conventional money demand equations based on a partial adjustment and an autoregressive distributed lag models using three definitions of monetary aggregates. The behavior of the foreign currency/Naira deposit ratios have been influenced by devaluation expectations, exchange rate risks and political uncertainties during the Yar'adua-Jonathan presidency. Also, the money demand estimations reveal that short-term foreign interest rates significantly affect the demand for the Naira, suggesting strong evidence of currency substitution and the possibility of importing considerable instability in the economy.
Subjects: 
Currency Substitution
Demand for Money Function
Autoregressive Distributed Lag Approach
Monetary Policy
JEL: 
E51
E41
C22
Document Type: 
Article

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