Exchange Rate Volatility and Nigerian Stock Market Development

Purpose: The study aims to evaluate the impact of exchange rate volatility on indicators stock market, such as returns, capitalization, liquidity, transaction volume, based Nigerian evidence. Theoretical framework: paper considers extant model rate-stock market interactions. Because diversity is important follows suggestions by El-Wassal (2013) examine variety in order offer accurate depiction how drives volatility. Design/Methodology/Approach: employs a simple static regression with autoregressive adjustment component which absorb autocorrelation. models are tested annual data (1985-2020). Findings: finds that has negative development - capitalization and volume. reveals further other correlated controls factors impinge different impacts indicators. Research, Practical & Social implications: One implication finding may discourage investors, reduce firm performance, lead reduction returns shares. Policy makers should put place growth-inducing infrastructural investments make business environment more conducive attract foreign capital, while also positioning capital several initiatives increase trading activities. Originality/Value: connection between financial markets policy importance. Although focus markets, evidence could be extended African global serve guide investors.