The Effect of Currency Fluctuation on Import and Export Trade: A Quantitative Analysis

This study examines the effect of currency fluctuation on import and export trade in Nigeria. Currency fluctuation, characterized by the volatility of the exchange rate, has a profound impact on trade flows, competitiveness, and economic stability. Using a quantitative approach, the study explores the extent to which variations in the naira exchange rate influence import and export performance between 2010 and 2023. Secondary data were obtained from the Central Bank of Nigeria (CBN) and the World Bank. Findings reveal that exchange rate depreciation tends to enhance export competitiveness but simultaneously increases import costs, thus influencing the trade balance. The study concludes that currency fluctuations, while inevitable, require sound exchange rate management and trade policies to minimize adverse effects on the Nigerian economy.