Money Supply, Foreign Exchange Regimes and Economic Growth in Nigeria.

Abstract

The study empirically examines the effect of money supply, foreign exchange on Nigeria economy, in line with the objectives of this study, secondary data were obtained from central bank of Nigeria statistical bulletin covering the period of 1988 to 2010. In concluding the analysis, multiple regressions were employed to analyze data on such variables Gross Domestic Product (GDP), Narrow Money, Broad money, exchange rate and interest rate were all found have significant effects on the Economics Growth with the Adjusted R² of 0.973 showing that about 97.3% variation in the GDP from 1988 to 2010 is due to NARM. Following the outcome of this study, it is therefore concluded that the growth in money supply was attributed to credits extended by the deposit money banks to the private sector. It is order to improve economic growth, it is recommended Nigeria Banks should be committed to the mission of price stability as well as improving the regulatory and supervisory frameworks to secure a strong financial sector for efficient intermediation.

Key words; Money supply; CBN; exchange rate; Narrow money; Broad money; Nigerian Economy;