Central Bank of Nigeria, Research Department.
Purchasing power parity, Equilibrium exchange rate
This paper examined the relevance of the Purchasing Power Parity (PPP) concept in exchange rate analysis using Nigerian data. In this direction, the paper attempted to explore the relationship between the nominal exchange rate and relative prices to establish whether a long run relationship exists between them, and to determine whether the exchange rate is at a competitive level.
Obaseki, P.J. (1998). The purchasing power parity (PPP) measure of Naira's equilibrium exchange rate. Economic and Financial Review, 36 (1). 1 - 21.