ANALYSIS OF THE LEGAL FRAMEWORK OF CURRENCY TRADING AND EXCHANGE IN NIGERIA: A COMPARATIVE STUDY OF NIGERIA AND UNITED STATES (US)

Abstract

The status of currency trading and exchange in Nigeria is a pivotal ingredient and a key determinant factor of the level of output growth of the country, and to facilitate such, effective foreign exchange policies are highly recommended. This is geared towards the preservation of the domestic currency (Naira), the maintenance of a favorable external reserve position, ensuring external balance without compromising the need for internal balance, and the overall goal of macroeconomic stability. The main objective of this research is to investigate the true position of the casual relationship between the Nigerian exchange rate and dollars through a comparative study of the economies of these respective jurisdictions. By examining the regulatory environment in both countries, we can identify areas where Nigeria can improve its policies to promote a more conducive environment for currency trading. The study employs a qualitative research approach, examining relevant laws, regulations, and case studies in both jurisdictions. The research focused on comparing the regulatory environments, licensing requirements, and enforcement mechanisms in both countries. Through a thorough analysis of relevant laws, regulations, and case studies, the research provides valuable insights into the differences and similarities between the two jurisdictions. This comparative study aims to contribute to the existing literature on currency trading and exchange regulations in emerging markets like Nigeria. The findings in relation to this research boil down to the internal defects that pose a threat to Nigeria's domestic currency boost, which can be corrected through a review of the policies and legal framework existing in relation to the economy as well as corresponding adherence to the dictates of international organizations. In the overall, this study will contribute to the ongoing discourse on economic development and foreign exchange management in Nigeria.