TABLE
OF CONTENTS
TITLE
PAGE
CERTIFICATION
DEDICATION
ACKNOWLEDGEMENT
TABLE
OF CONTENT
CHAPTER ONE: INTRODUCTION
1.0 Introduction
and Background of the Study
1.1 Statement
of the Problem
1.2 Aims
and Objectives of the Study
1.3 Significance
of the Study
1.4 Scope
and Limitation of the Study
1.5 Definition
of Key Terms
1.6 Plan
of the Study
CHAPTER TWO: LITERATURE REVIEW
2.0 Literature
Review
2.1 Theoretical
Review
2.2 Conceptual
Review
2.3 Empirical
Review
2.4 Foreign
Exchange in Context
2.5 The
Rule of Central Bank of Nigeria (C.B.N) in Foreign Exchange Management
2.6 Policy
Tool for Foreign Exchange Management
2.7 Global
Financial Crisis and its Implication for the Nigeria’s REFERENCE
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction
3.1 Population
of the Study
3.2 Data
Collection
3.3 Data
type/Source of Data
3.4
Sample and Sampling Techniques
3.5
Limitation of the Methodology
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION
4.0 Introduction
4.1 Analysis
of Questionnaire Administration
4.2 Interpretation
of Result
CHAPTER FIVE: SUMMARY AND
RECOMMENDATIONS
5.0 Summary
5.1 Recommendations
5.2 Conclusion
BIBLIOGRAPHY
QUESTIONNAIRE
CHAPTER
ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
The
need for foreign currency policy management arises only within the frame-work
of countries engaged in international trade in contract to a closed economy,
whose scope does not transcend its intra country trade transactions.
Foreign exchange is the means or ways
of effecting payment for international transaction it can be acquired by a
country through the export of goods and services, direct investment inflow
drawn down on external loans aid or grants and it can also be expanded on
settling international obligations. It is made up of convertible currencies
that are generally accepted for the settlements of international trade and
other external obligations. Such currencies include those of the group of seven
(G7) industrialized countries made up of united state Dollar, British pound
sterling, deutsche mark, Japanese yen, French, Italian and Canadian dollar.
Foreign
exchange market is the medium of interaction between the sellers and buyers of
foreign exchange in a bid to negotiate a mutually acceptable price for the
settlement of international transactions. The objectives of the market include
the provision of an avenue for the exchange of national currencies and the
creation of an effective mechanism for the allocation of foreign exchange.
The
foreign exchange market consist of the seller (supply) and buyer (demand) of
foreign exchange. The major participant in foreign exchange market are the
monetary authorities (Central Bank of Nigeria) authorized dealers (Bank) agents
of the public sector, and the private sector as well as correspondent banks
abroad. The supply of foreign exchange is derived from oil and non oil exports,
capital by receipts include draw down on loans, expenditure of foreign tourist
in Nigeria, repatriation of capital by Nigeria resident abroad as well as
invisible receipt by the private sector. On the other hand the demand of
foreign exchange consist of payments for important external debt service
obligations personal home remittances (PHR) by foreign nations resident in the
country, financial commitment of international organization and the country’s
embassies abroad as well as other invisible out payment by the private sector.
1.1 STATEMENT OF THE PROBLEM
An
important threat to effective foreign exchange policies and management in
Nigeria, is the accumulation of foreign debt whose servicing have been
conceiving a greater proportion of the dividing inflow at the detriment of
developed programmes which require foreign for exclition.
In
consisting in policy formulation and implementation is another major problem.
Frequent changes minister/secretariat witnessed change in policies and his
affect performance and result.
Lack
of monetary and fiscal policy on the part of government from 1970 to date,
Nigeria has witnessed grass mis-management of respondences and budget
indiscipline. A situation where budget is surplus and ends up in billion of
naira deficit.
Narrow
export based and low elasticity of export goods protectionist policies of the
industrialized nation against export goods and development of syntheties
(fibers) seem to have jointly conspired to frustrate the efforts to increase earning
from export.
1.2 AIMS AND OBJECTIVES OF THE STUDY
The
primary objectives of this research is to analyze the source of the foreign
exchange and prefer solution on how it can be managed effectively to achieve
the set of goals.
To
achieve the set of goals or objectives, the following objectives have been
specified:
v To review the existing literature,
collect and collate information on sources of foreign exchange.
v To identify the sources of foreign
exchange
v To identify the review loopholes and
malpractice in foreign exchange management
v To analyze the ways that foreign
exchange gets to the ultimate users.
v To determine the effects of foreign
exchange mis-management
v To recommend measure to take to improve
the foreign exchange management.
1.3
SIGNIFICANCE OF THE STUDY
The
worsening balance of payment(B O P )accumulated external debt continued commitment
of greater parts of the declining exchange earning to debt servicing alongside
domestic inflation and management of the country foreign exchange resources.
This,
a research into this topic is a better understanding of the issues involve in
forex policy and management and offer useful proposal for the benefit makers,
scholars and individual or corporate in or using forex.
1.4
SCOPE AND LIMITATION OF THE STUDY
The
study focused on the implication of foreign exchange management and global
economic down turn on Nigeria economy. The problems encountered in the study
were multidimensional in native
Although
through the help of some personnel, we were able to get most of the material
needed for the project but some staff refused
to co-operate to give necessary assistance.
The
rate of response from people outside the central bank especially the bureau the
change and the black market used in this project was strictly negligible
because of their unco-operative attitude and inability to understand the purpose
of the project by black market
operators.
Some black market operators believe
we were trying to gather information for the government on how to curb and
refried the of them while staff of bureau change believed that we were being
used by some people in the central bank
as a result of which they are not prepared to have any discussion with us.
1.5 DEFINITION OF KEY TERMS
·
Trade: the buying and selling of goods and
service.
·
Stock
Market: it
is also called equity market which is a public market (a loose stock network of
economic transaction not a physical facility for stock brokers and traders to
trade stock and other securities.
·
Equities: Common and preferred stocks, which
represent share in the ownership of a company.
·
Exchange
Rate: The giving
of money for its equivalent in another currency.
·
Bonds: promissory note issued by a
corporation or government to its lenders usually with a specified amount of
interest for a specified length of time.
·
Certificate : The physical document that shows
ownership of a bonds stock or other security.
·
Fiscal
Year: This
is also the same as a budgeting year which is usually one year.
·
Recession: A temporary decline in the economic
activity of a particular country
1.6 PLAN
OF THE STUDY
For the understanding and easy presentation,
this research work is divided in to five chapter.
Chapter one usually contain the
introduction, the objective of the study, significance of the study the plan of the study itself, and problem of
the study used by the writers.
Chapter two treats literature
review, theoretical review, conceptual review, empirical review, introduction
to foreign exchange in context, role of C. B. N in foreign exchange management,
policy tool for foreign exchange management and the down turn of global financial
crisis on Nigeria economy.
Chapter three contains research
methodology, introduction, population of
the study, data collection, sample and sampling techniques and limitation of
the methodology.
Chapter
four introduction, data analysis and interpretation of result.
Chapter five summary, conclusion,
recommendation and reference.
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