Evaluating the Determinants of Exchange Rates in Emerging Markets: Evidence from Nigeria and South Africa

This paper evaluates empirically the determinants of exchange rates in emerging markets, with emphasis on Nigeria and South Africa during period 2001-2020. By applying pooled OLS regression method both panel data countries as subsamples, study finds out that under level, inflation rate, government final consumption expenditure broad money had a negative effect only was significant. On other hand, real interest current account balance, economic health, GDP per capita, gross capital formation, trade positive effects but domestic product formation were For Nigeria, rate capita non-significant while health significant rate; consequently, trade, expenditure, rate. Africa, meanwhile addition,