CBN Journal of Applied Statistics (JAS)


Dollarization, Inflation, Interest rate, SVAR, Nigeria


This paper investigates the relationship among dollarization, inflation and interest rate in Nigeria for the period 1986-2015Q1. It adopts inter-temporal model of money-in-utility (MIU) with an estimation technique of structural vector autoregression (SVAR). Empirical evidence shows that dollarization index has been on the increase in Nigeria since 1994, despite stable and low inflation and interest rate. Results of the cointegration show long run equilibrium among dollarization, inflation and interest rate. The Granger causality test reveals that there is a unidirectional relationship from dollarization to inflation in Nigeria. This suggests that policies that aim to reduce inflation in Nigeria must include measures that specifically address the issue of dollarization.

Author Bio

1.Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria. Phone no: +2348035342586 E-mail address: doolayungbo@oauife.edu.ng, yinkadavey2k@yahoo.co.uk

2.Akintola Williams Deloitte, House 235, Ikorodu Road, Ilupeju, Lagos, Nigeria. Phone no:+2347032505208 E-mail address: tayok78@yahoo.com

Publication Title

CBN Journal of Applied Statistics







To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.