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Modelling the impact of crude oil price on Nigerian exchange rate during COVID-19

Author

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  • Leelee N. Deekor

    (Department of Economics, Ignatius Ajuru University of Education Port Harcourt, Nigeria)

  • Amina Muhammad Sani

    (Department of Economics, Ignatius Ajuru University of Education Port Harcourt, Nigeria)

  • Onyinyechi Nweke

    (Department of Economics, Ignatius Ajuru University of Education Port Harcourt, Nigeria)

Abstract

This study examines whether the dynamics of the impact of oil prices on currency rates during a crisis are comparable throughout the many COVID-19 pandemic waves using the example of the Nigerian economy. The ARDL model was deemed the most appropriate to model the relationship between exchange rates and oil prices in the setting of this study, which is consistent with the results of our unit root testing. The study demonstrates empirically that, in the setting of exporting economies, the effect of oil prices on exchange rates is as theoretically predicted. It also shows that the average depreciation patterns of the Nigerian naira in relation to the US dollar tend to get worse when the COVID-19 pandemic outbreaks occur.

Suggested Citation

  • Leelee N. Deekor & Amina Muhammad Sani & Onyinyechi Nweke, 2022. "Modelling the impact of crude oil price on Nigerian exchange rate during COVID-19," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(12), pages 726-730, December.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:12:p:726-730
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    References listed on IDEAS

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