Economic and Financial Review


Central Bank of Nigeria


Exchange Rate Policy, Exchange Rate Regimes, Fixed Exchange Rates, Dollarisation, Monetary Union, Currency Boards, Single Currency Peg, Crawling Peg, Floating Exchange Rate, Managed Float, Nigeria


This article examines exchange rate policy design with reference to how to choose the appropriate exchange rate Response for the right environment. The article is structured into four parts with the introduction as part I. Part II gives the overview of Nigeria's exchange rate framework. Part III reviews different concepts of equilibrium exchange rates with a focus on the fundamental equilibrium exchange rate (FEER) and the behavioural equilibrium exchange rate (BEER) approaches. Part IV discusses the challenges encountered in choosing the right exchange rate response in the new banking sector environment. Part V concludes the paper and proffers the way forward.

Author Bio

Prof. Obadan, M. I. is of the Department of Economics, University of Benin.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Obadan, M. I. (2007). Exchange Rate Policy Design: Choosing the Right Exchange Rate Response in a Changing Environment. CBN Economic and Financial Review, 45(4), 143-163.

Included in

Economics Commons



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