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Does China’s Currency Swap Agreements have Impact on U.S-dollar’s Exchange Rate in Nigeria?

§ Obafemi Awolowo University Ile Ife Osun State

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Does China’s Currency Swap Agreements have Impact on U.S-dollar’s Exchange Rate in Nigeria?

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Abstract

This study examines the impact of China’s currency swap agreements with Nigeria on U.S. dollar’s exchange rate with naira between 1999 and 2017 using Robust Least Squares (ROBUSTLS) technique. The results of the finding reveal that China’s currency swap agreement with Nigeria tends to have a reasonable impact on the exchange rate (value) of U.S. dollar. Since the existing works on bilateral currencies swap agreements between China and other countries (excluding Nigeria) reveal that the U.S. dollar dominates all other international currencies in trade settlement and with the aim of bypassing the U.S. dollar in international trades, this study therefore provides fresh empirical evidence on the impact of China’s currency swap agreements with Nigeria on the U.S. dollar’s exchange rate and concludes that China’s currency swap agreement with Nigeria will raise the exchange rate of naira and lower the value of the U.S. dollar with respect to Nigerian naira.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Abiodun Sunday Olayiwola, Kazeem Fasoye. 2019. "Does China’s Currency Swap Agreements have Impact on U.S-dollar’s Exchange Rate in Nigeria?". Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 19 (GJHSS Volume 19 Issue E3).

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

Keywords
Classification
GJHSS-E Classification FOR Code: 910199
Version of record
v1.2

Issue date
April 30, 2019

Language
English
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Does China’s Currency Swap Agreements have Impact on U.S-dollar’s Exchange Rate in Nigeria?

Abiodun Olayiwola
Abiodun Olayiwola Obafemi Awolowo University Ile Ife Osun State
Kazeem Fasoye
Kazeem Fasoye <p>Obafemi Awolowo University Ile Ife Osun State</p>