INTRODUCTION
It is already stated that money is a common demonstration in which the rate, relation value of good and services can be expressed.
Throughout history any community which form itself unto a nation for the purpose of self government immediately introduces its own distinction out of account- monetary out of account (legal Tender)
In the works of Endel (2000:277) “ In the international real no legal tender exist : values must be measure, accounts kept and payments made by conversion of one economy into another, thus conversion process is known as foreign exchange. It is an internationally convertible currencies (ude, 1996: 146)
Foreign exchange can be required by a country through to export of goods and serious, direct investment inflows, and goods. When foreign exchange expenditure lower than foreign exchange receipt, the surplus is added to reserves. The use reserves which are also savings from exchange farms time are hold by the authorities to finance short falls of foreign receipt and to safe guard the international value of the domestic company.
Whom there a disequlibilum on the foreign exchange market, which is consent by inadequate supply of foreign exchange reserves, may be exerted on foreign exchange reserve of the resources are not adequately, it will determinate into balances of payment problems, hence the need to manage a nations foreign exchange resource so to reduce the adverse effect of foreign exchange volatile.
The management of foreign exchange resources a further informed by the need to se an appropriate changing price in the foreign exchange market. Therefore, the act of foreign exchange management is a conserves attempt to harness foreign exchange resources, deploy
Them to service the economy so as to present the economy from experience stocking due to foreign exchange volatility.
he practice of managing the foreign exchange resources how therefore evolved broadly in line with globalization and liberalization of economics and financial markets.
Anifonose. 2001: 19) .
TABLE OF CONTENTS
Title page i
Approval page ii
Acknowledgement iii
Dedication iv
Table of content v
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the study 2
1.2 Statement of the problem 3
1.3 Objectives of the study 4
1.4 Significance of the study 4
1.5 Research questions 5
1.6 Hypothesis 5
1.7 Scope and Limitation 7
1.8 Definition of Terms 8
Reference 9
CHAPTER TWO
2.0 Literature Review 10
2.1 Definition of foreign Exchange 10
2.2 Management of Reserve flows 13
2.3 Management of reserve stocks 21
2.4 Foreign Exchange Problems 24
2.5 Foreign Exchange Control 24
2.6 Foreign Exchange Market IFEM 26
2.7 Foreign Exchange Management and
Parallel market – Bureaux De change (B.D.C) 27
References 32
CHAPTER THREE
3.0 Research Methodology 34
3.1 Method of Investigation 34
3.2 Sources of Data 34
3.3 Population and sample size 35
3.4 Validity and reliability of research instrument 37
Reference 39
CHAPTER FOUR
4.0 Data presentation and Analysis 40
4.1 Data Analysis Techniques 40
4.2 Analysis of Questionnaires 41
4.3 Testing of Hypothesis 52
CHAPTER FIVE
5.0 Summary of findings, conclusions and Recommendation 65
5.1 Summary of findings 65
5.2 Recommendations 66
5.3 Conclusion 68
Bibliography 69
