CROSS EXAMINING EXCHANGE RATE AND TYPOLOGY OF REGIMES IN A RECESSED ECONOMY: AN EARLY WARNING SIGNAL

PROF. PATRICK L. AKPAN

Volume: 09 Issue: 05 2023

Abstract:

This paper presents the link between exchange rate and the typology of political regimes in Africa with particular reference to Nigeria. It is noted that Nigeria is characterized by exchange rate instability and government at different political regimes deem it fit to seek as well as fine-tune policy opinions towards achieving goals of exchange rate stability. The regime type ranges from fixed to flexible exchange rate management strategies in the pre-SAP, during SAP and post SAP periods. The policy implications of addressing exchange rate instability with the use of imported programmes as popularized by word bank/International Monetary Fund (IMF) is that with the emergence of free trade, deregulation and liberalization of foreign exchange during political regimes, the pace of development has deteriorated abysmally in most African countries. This paper opines that a regime that stabilizes macroeconomic performance vis-à-vis exchange rate should be regarded as the best regime. Government is hereby urged to implement the economic recovery and growth plan effectively and efficiently. A deviation from this renders the entire reform programmes by different regimes a disaster and of course a mirage.

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