<b>Effect of Exchange Rate Fluctuation on Economic Growth in Developing Countries. A Nigeria Experience</b>

This study is to examine the “effect of exchange rate fluctuations on economic growth in developing countries. A Nigeria experience” the Research hypotheses were tested to guide the study. To achieve this, Time series data were obtained from the Central Bank of Nigeria (CBN), and World Bonk Indicators publications on trends of GDP growth rate for the assessment for the periods 1985 to 2024. The GDP was used as dependent variable indicating economic growth of Nigeria. While independent variables like Exchange rate (exchrate), interest rate (intrate), inflation rate (inflrate), and exchange rate vitality (exchratevol), were used as economic (performance) indicators. Multiple regression models (EGARCH and Granger Causality) were used to analyze the data in order to establish a functional relationship between the dependent variable and independent variables. E – View version 10 was used for running of the data. Our result revealed that there is variation on trend of exchange rate fluctuation and economic growth in Nigeria; hence the Government policies were not efficacious in the attainment to exchange rate stability in Nigeria. Again, growths in money supply impact negatively on the economy as they breed inflation and there are significant relationships among, exchange rate, interest rate and inflation rate. Therefore, the paper recommends among other things, that the monetary authorities should come up with workable macroeconomic policy that is capable of putting the economy back on a path of sustainable and non-inflationary position. This can be achieved by recognizing the importance of the linkage between the exchange rate and the growth of the economy