SOME SELECTED ECONOMIC INDICATORS AND THE VALUE OF THE NAIRA PER DOLLAR IN NIGERIA

The value of the Naira per US dollar in Nigeria from 2000 to 2023 is examined in this study along with a few macroeconomic variables. The Central Bank of Nigeria (CBN), the World Bank, and the National Bureau of Statistics (NBS) provided secondary data for the macroeconomic variables taken into consideration, which include GDP, exchange rates, inflation rates, and interest rates. Regression analysis is one of the econometric and descriptive statistics used in the study to examine how the variables behave and interact. The rising and declining trends of the macroeconomic variables during the research period were also examined using trend analysis. The results show that the Naira's exchange rate showed a steady increasing trend, indicating ongoing depreciation relative to the US dollar. While the GDP growth rate varied during times of economic prosperity and contraction, the inflation rate exhibited notable fluctuation with notable increases in recent years. Interest rates fluctuated erratically over time, reflecting shifts in monetary policy. The findings also demonstrate that while GDP growth has a weaker association with the exchange rate, inflation and interest have a considerable impact. The analysis comes to the conclusion that the Naira's devaluation is a result of macroeconomic instability, including growing inflation and erratic interest rate policy. Therefore, in order to stabilize Nigeria's exchange rate, it suggests implementing stable monetary policies, inflation control measures, and policies targeted at promoting sustainable economic growth.