An Analysis Of Foreign Exchange Reserve Trend, Adequacy And Their Relationship With Selected Macroeconomic Variables In Nigeria: 1980-2014

ABSTRACT Due to the increasing uncertainty as a result of globalisation, economies of developed and developing nations maintained adequate level of foreign exchange reserve to protect and achieve general stability in an economy. Nigeria has witnessed an intermittent rise and fall in the level of its foreign exchange reserve without proportional effects in some key macroeconomic variables. Instead, persistent problems like exchange rate volatility, and general macroeconomic instability continuous to prevailed even in periods of a fall or a rise in the level of foreign exchange reserve. The spe…