THE EFFECT OF MONETARY POLICY ON THE FINANCE OF FOREIGN TRADE. RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
ABSTRACT
The purpose of this study is to determine the impact of monetary policy on foreign trade financing. To do this data were collected from both primary and secondary source. Primary sources include CBN Officials while secondary sources include textbooks, journals etc. the major instrument for data collected is the questionnaire, the data are presented in table and analyzed with chi-square. Having analyzed the data, the following finding were made.
1. There is an extent to which monetary policies have been effective in financing foreign trade.
2. There is factors militating against the effectiveness of monetary policies in Nigeria foreign trade activities. The study draws the following conclusions.
CHAPTER ONE
INTRODUCTION
1.1 PROBLEM IDENTIFICATION.
A number of monetary and Economic policy measures have been included in the Nigerian Economic since the 1980’s not only to achieve macro-economic stability but also to enhance foreign trade financing. But unfortunately, these policy measure have resulted in inflationary pressure, depreciated foreign exchange rate increasing foreign debt and deficit balance of payment (Ogwuma 1997).
Consequently the cost of foreign exchange has risen astronomically while foreign exchange inflow has dwindled significantly. This situation has mounted pressure on foreign exchange budget and adversely affected the financing of foreign trade.
The aim of the study is to examine the effect of the monetary policy on the finance of foreign trade thus;
1. To determine the impact of monetary policy in financing foreign trade.
2. To determine the extent to which monetary policies have been effective in financing foreign trade.
3. To identify the factors militating against the effectiveness of monetary policies in Nigeria’s foreign trade activities.
1.2 RATIONALE OF THE STUDY.
This work is selected for the view of finding the ways by which foreign trade can be financed and improved through the help of monetary policy measures. The adjustment of the monetary policy of Nation plays a very important role in the finance of its foreign trade.
Leave a Reply
You must be logged in to post a comment.