ABSTRACT

This study is to ascertain the impact of flexible exchange rate policy on Nigeria external trade for the period of 22 years (i.e. 1985 — 2008). The main purpose of this research work is to verify the impact of flexible exchange rate policy on Nigeria external trade and how the effectiveness and efficiency can increase the volume of exported products. Data was extracted from various issues of Central Bank of Nigeria bulletin. Data analysis was done using regression analysis. The findings show that deregulated exchange rate has no significant effect on Nigeria external trade with R2of 69.2%, and t. value of 1 .23. at 1% significant while the second hypotheèis show that there is significant effect of exchange rate on export with R2of 7.18% and t. value of 7.139 at 1% level of significant and finally the third hypothesis show that there is significant effect on exchange rate and import with R2of 69.8% and t. calculated of 6.799 at 1%. Based Qfl the findings, the study recommends that government should provide enabling environment and framework for the smooth operation of the flexible exchange rate regime among others.