The Impact of Exchange Rate on Foreign Trade in Nigeria

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Global trade has now increased the consciousness and awareness of the value of the exchange rates of trade currencies between buyers and sellers across different nations of the globe.

As such, products on demand move across borders of their home countries of production into various markets in different parts of the world.

Hence, when a Nigerian buys a product from the US or the UK in any Nigerian market, he or she is involved in exchange rate transactions and foreign trade and vice-versa.

Interestingly, a lack of understanding of the mechanisms guiding exchange rate operations in trade transactions across national boundaries can make a buyer buys a cheap product at a relatively high price and at the same time make a seller ignorantly sells a costly product at a cheap or give away price.

As a result, this book has been put together to brighten the understanding of both buyers and sellers in the international market domain, and to also bring to the understanding of the readers, reasons why nations are involved in trade and the impact of exchange rate dynamics on trade in the international sphere with examples from Nigerian trade patterns with other nations of the world.

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