DOI: 10.36347/sjebm.2024.v11i07.006

Pages: 223-233

This study examined the Analysis of the Impact of Exchange Rate Dynamics on Foreign Direct Investment in Nigeria using ex-post facto research design. Findings from the study reveal that there is a causality between foreign direct investment and international trade since the P-value (0.0008) is statistical significally significant at a 5% level of significance. Additionally, a statistically a significant relationship between foreign direct investment and international trade is observed at two (2) lags. Therefore, they study recommends the central bank of Nigeria should explore the implementation of a more flexible exchange rate regime, such as a crawling peg or managed float, to effectively manage exchange rate volatility. It is advisable to develop strategic trade relationship with countries that possess stable currencies. This can potentially diversify Nigeria’s trade portfolio and reduce dependence on volatile currency markets.