ARTÍCULO
TITULO

Channelling The Nigeria?s Foreign Exchange Reserves into Alternative Investment Outlets: A Critical Analysis

Asimiyu Gbolagade Abiola    
Francis Ojo Adebayo    

Resumen

In recent years, impressive price of crude oil has stimulated the accumulation of foreign exchange reserves in Nigeria. However, observers have expressed fears about the channels of utilisation of the reserves, especially to other alternatives investment outlets. This paper examines the cost-effective propositions of the foreign reserves in Nigeria, and considers alternative investment channels. The study uses data from publications of the Central Bank of Nigeria (CBN), Statistical Bulletin, Annual Reports and Statement of Accounts. It adopts the theory of demand for international reserves based on three motive notably transaction, precautionary and mercantilist. The study among others finds that Nigeria foreign reserve is adequate. The level of reserves to import satisfies the international benchmark etc. The study recommends among others the need to split foreign reserves into four portfolios. The liquidity portfolio, long-term portfolio or investment portfolio, immunization portfolio, and the petroleum fund buffer portfolio or sovereign wealth fund. Keywords: Foreign exchange reserve; investment outlet; gross domestic product JEL Classifications: F31; P45

 Artículos similares

       
 
Idah Zuhroh,Hendra Kusuma,Syela Kurniawati     Pág. 261 - 268
A control of the inflation rate caused by the fluctuations in foreign exchange reserves, money supply, and exchange rate is required to create the stability of the country's economy. This study aims to analyze the dynamic impact of disturbance factors co... ver más

 
Kevin Pacini, Peter Mayer, Stefan Attar, Jean Azam     Pág. 1 - 11
How firms perform during the business cycle and what macroeconomic factors have the greatest influence on industrial firm performance? The purpose of this study is to study the impact of chosen macroeconomic factors on firm performance in the United King... ver más

 
Ghazi Al-Assaf     Pág. 43 - 50
The paper investigates the differences between number of indicators used for an early warning system to explain any potential currency crisis for the case of Jordan and Egypt. The comparison is based on estimating various leading indicators that help in ... ver más

 
Osman Gulseven     Pág. 1429 - 1435
State of Kuwait is one of the richest countries in the world. Thanks to its oil reserves, the country hosts millions of foreign workers whose numbers have outpaced the Kuwaiti population. This article aims to forecast the future population of Kuwait usin... ver más

 
Evan Lau,Alvina Syn-Yee Lee     Pág. 1973 - 1980
External debt has been the major global concern not only heavily indebted poor countries (HIPCs) but also developing nations in resultants of the 2008 Global Financial Crisis (GFC). It has become a well-discussed subject and generally a concern of global... ver más