Evaluation of Trend of Foreign Exchange Reserve and Shipping Industry Trade Performance in Nigeria

Abstract

This study focused on the evaluation of the trend of foreign exchange (FX) reserve and the performance of shipping industry trade by examining the export and import trades within the periods 2011 to 2022. The objectives were to determine the correlation between trend values of FX with export and import shipping trades in Nigeria. Provisional data on foreign exchange reserve, export, and import trades from World Bank, CBN, and Trend Economy were analyzed using Spearman’s rank correlation coefficient analysis, and it was observed that foreign exchange positively influences export and import shipping trades; however, the study infers that the impacts were not significant at 0.05 (2-tailed) significance level. It concludes that the positive correlations between the data variables inform that decrease in FX influences decrease in export and import trade which also return economic growth, development, and reduced people’s standards of living in Nigeria. However, the reserve becomes the case. The study recommends immediate policy adjustment to hold and maintain strong foreign exchange which could boost country’s reserve for better performance of the shipping industry and other sectors of the economy.

Received: 14 April 2024 | Revised: 30 May 2024 | Accepted: 24 June 2024

Conflicts of Interest 

The authors declare that they have no conflicts of interest to this work.

Data Availability Statement

The data that support this work are available upon reasonable request to the corresponding author.

Author Contribution Statement

Chinyeaka Nwokodi Nwoloziri: Conceptualization, Methodology, Software, Validation, Formal analysis, Investigation, Data curation, Writing – original draft, Visualization, Supervision. Tamunosa Felix Pieterson: Conceptualization, Methodology, Software, Formal analysis, Writing – original draft, Visualization, Project administration. Tochi Clement Nwachukwu: Conceptualization, Methodology, Software, Formal analysis, Writing – original draft, Visualization, Project administration. Arbia Hlali: Conceptualization, Validation, Writing – original draft, Writing – review & editing, Visualization, Supervision.