- Views 0
- Likes 1
Since exportation has a special share in the economic growth of many advanced and developing countries; as far as making those countries as the strongest countries, the effective factors; in turn, could pave way for progress of countries, particularly the developing countries. Since increase or decrease in currency exchange rate leads to the decrease or increase in export. Nigeria is endowed with various kinds of resources needed to place her among the top emerging economies of the World. Unfortunately, the nation has not adequately benefited from the economic prosperity expected of a nation so richly blessed. Non-oil exports are products, which are produced within the country in the agricultural, mining, quarrying and industrial sector that are sent outside the country to generate revenue for the growth of the economy, excluding oil products. These non-oil exports include products like coal, cotton, timber, groundnut, cocoa, beans, gum Arabic etc. while real exchange rate basically, can be defined as the nominal exchange rate that takes the inflation differentials among the countries into account. Its importance stems from the fact that it can be used as an indicator of competitiveness in the foreign trade of a country. Exchange rate is used to determine an individual country’s currency value relative to the other major currencies in the index, as adjusted for the effects of inflation. All currencies within the said index are the major currencies being traded today: U.S. dollar, Euro pounds, etc. This is also the value that an individual consumer will pay for an imported good at the consumer level. This price includes tariffs and transactions costs associated with importing the good.