Rethinking economic reforms and foreign exchange behaviour in an emerging economy: evidence from Nigeria

Abstract

This paper examines economic reforms and the Management of foreign exchange in an emerging economy aimed at achieving the millennium development goals. Reform Programmes are not new in Nigeria as it has become a subject of public disquiet generally. Economic reform programme is expected to move the country to achieving improved standard of living. It has been established that the reform agenda has linkage with balance of payments, price stability, full employment, economic growth, protection of the environment and equity/poverty alleviation. Unrealistic
nature of the Naira has prompted series of reforms namely, Structural Adjustment Programme (SAP), guided deregulation and lastly, National Economic Empowerment and Development Strategy. To guide against past mistakes, this paper opines that current economic reform programmes should be properly focused by way of redesigning a realistic and stable rate of the currency vis-a-vis resource base, and resource mobilization programme capable of tackling poverty alleviation problems and not just
economic growth. The nature of problems as well as the felt needs of the citizens in the country should determine the policy relevance in the reform agenda. A deviation from this renders the reform programme an illusion.