Exchange Rate Management and Sectoral Output Performance

The aim of all national economies is to stabilize its exchange rate with the countries it trades with; therefore exchange rate is very vital to the economy of every country. Nigeria has adopted both fixed and fluctuating exchange rate regimes in order to realize the goal of a stable exchange rate but this has proven futile as the economy has continued to perform poorly over the years. This study is therefore aimed at examining the effect exchange rate management has on output performance of both the agricultural and the manufacturing sector. Secondary data from 1981 - 2015 were analyzed using the Ordinary Least Square technique. The findings revealed that exchange rate have a positive and significant effect on only the agriculture sector. The study recommends amongst others that efforts should be made to increase the exportation of agricultural products in order to boost exchange rate.