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.
Cite this paper
Musa, K. S. , 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, e6072. doi: http://dx.doi.org/10.4236/oalib.1106072.
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