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Time-and-Frequency Domain Analysis of Global Oil Shocks and the Nigerian Exchange Rates

We examine the interdependency between global oil shocks and Nigerian exchange rates using the wavelet coherence technique. Our analysis reveals evidence of time-and-frequency domain interdependence among oil supply, economic activity, and oil consumption demand shocks with Nigerian exchange rates, particularly during turbulent economic events such as the global financial crisis, the 2014/2015 oil crisis, and the recent COVID-19 pandemic. These findings underscore the significance of key events in modeling the dynamic relationship between global oil shocks and exchange rates in oil-dependent e…

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