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Bullion

Keywords

Foreign Exchange Market, Nigeria

Abstract

The paper carried out an appraisal, reviewed the benefits and problems and highlighted the prospects of foreign exchange market(FEM). The foreign exchange market(FEM) became institutionalized in Nigeria following protracted economic declines. The 1970's were generally regarded as an era of oil boom in Nigeria, when oil revenue enhanced economic development. The economy became heavily dependent on crude petroleum exports as the main source of foreign exchange earnings and government revenue. In a continuous effort to revamp the economy, the government introduced the Structural Adjustment Programme (SAP) in 1986 as a short-term measure to last till 1988. The core component of the SAP was what was known initially as Second-Tire Foreign Exchange Market (SFEM) which was later transformed to the Foreign Exchange Market (FEM).

Author Bio

The author is a staff of Trade and Exchange Department, Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

3

Volume

16

Included in

Finance Commons

COinS
 
 

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