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Monetary Policy and Exchange Rate Dynamics in Nigeria: Evidence from Official and Parallel Market Rates.

This study examines the impact of the monetary policy rate (MPR) on exchange rate fluctuations in both the official and parallel (black) foreign exchange markets in Nigeria using the autoregressive distributed lag (ARDL) and threshold regression techniques from 2001Q1 to 2025Q4. Two long-run models are estimated for the official and parallel foreign exchange markets to assess both the short-run and long-run responses to monetary policy adjustments. Also, the threshold regression technique proposed by Tong H.(1978) is adopted to evaluate policy effectiveness across different macroeconomic regim…

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    from https://iiardjournals.org/get/IJSSMR/VOL. 12 NO. 3 2026/Monetary Policy and Exchange Rate 589-610.pdf