EFFECT OF EXCHANGE RATE VOLATILITY ON NIGERIA'S FINANCIAL INCLUSION

This study assessed the effect of exchange rate volatility on financial inclusion in Nigeria from 2009 to 2023 using the Arch and Garch technique for volatility measurement. The study employed three models to level up financial inclusion: number of point of sale (POS), value of automated teller machine transactions, and financial knowledge. The results from the study showed that exchange rate volatility exerts a negative effect on financial inclusion through the number of points of sale (POS), while financial knowledge has a positive effect with exchange rate volatility. The findings also revealed that through higher lending rates, exchange rate volatility wields a negative effect on the financial market. The paper recommended that the value of the country currency should be enhanced to improve the efficiency and depth of the financial sector. This can be achieved by increasing local productivity. In addition, policymakers in Nigeria should work at ensuring a low and stable inflation rate to prevent hampering financial inclusion and efficiency in Nigeria.