Aug 2026· Journal of Accounting and Financial Management· 0 citations
Abstract
Nigerian investors diversifying into international markets face a significant obstacle in the form
of foreign exchange risk, but there is a startling lack of empirical data on its effects. This study
closes this gap by carefully examining the impact of Naira volatility (NGN/USD, NGN/GBP, and
NGN/EUR) on the risk-adjusted performance of international portfolios. We use comparative
hedging simulations and multivariate regression using monthly data from 2010–2023, which
includes Nigeria’s 2016 capital liberalisation, several currency crises, and the 2023 Naira float.
Key findings show that oil price fluctuations and inflation discrepancies increase losses, and that
a 1% increase in forex volatility lowers real risk-adjusted returns (Sortino ratio) by 0.62% (*p*
< 0.001). Importantly, despite transaction costs, forward contracts through Nigeria's Investors' &
Exporters' window prove to be the best hedge, providing net returns during crises that are 10.8
percentage points higher than unhedged portfolios.
This study examines the impact of exchange rate volatility on the profitability and performance
of commercial banks in Nigeria from 2015 to 2024. Using a quantitative research approach
and explanatory design, it analyzes how exchange rate fluctuations influence key metrics such
as return on equity (ROE) and non-performing loan (NPL) ratios. The findings reveal a
significant negative effect of exchange rate volatility on profitability and a positive link to loan
defaults. Secondary data from the Central Bank of Nigeria (CBN) and bank financial
statements were analyzed using descriptive and inferential statistics, with a multivariate
regression model validating the results. The study highlights that GDP growth positively
impacts profitability and reduces loan defaults, while inflation has mixed effects. It emphasizes
the importance of exchange rate stability and effective risk management strategies, such as
hedging and portfolio diversification, for Nigerian banks. Policymakers are urged to adopt
measures like economic diversification and maintaining foreign reserves to mitigate adverse
effects. This research offers valuable insights into macroeconomic factors affecting financial
institutions and provides guidance for stakeholders in Nigeria's banking sector.
Aliyu Idris· International Journal of Eco...· 2 citations
In the context of accelerating globalisation and currency volatility, effective foreign exchange (FX)
risk management has become essential for business sustainability and performance. This study
investigates the relationship between FX risk mitigation strategies and key business performance
indicators, focusing on firms operating in four emerging African economies—Nigeria, Ghana,
Kenya, and South Africa. Using a mixed-methods approach, the research integrates survey data
from 108 financial officers and interviews with 20 treasury executives to assess the adoption and
impact of hedging tools, forecasting technologies, and exposure management practices. The
findings reveal that firms employing structured FX hedging instruments and real-time forecasting
tools report significantly higher financial stability, stronger returns on assets, and reduced
earnings volatility. Conversely, firms with unhedged currency exposure, particularly small and
medium-sized enterprises (SMEs), experienced performance deterioration due to depreciation
risks and foreign procurement costs. Regression analysis confirms a positive correlation between
FX risk management practices and financial performance, with technology adoption acting as a
performance-enhancing catalyst. The study concludes that institutionalising FX policies and
expanding access to hedging for SMEs are critical for growth and resilience. These insights offer
practical implications for corporate treasuries, policy makers, and financial service providers
navigating volatile currency environments.
G. O. Aina· Journal of Accounting and Fi...· 0 citations
This study examines the impact of inflation and interest rates on the performance of Malaysian Real Estate Investment Trusts (M-REITs) during the period 2015–2025. Employing a panel fixed effects regression model with robust standard errors, the study evaluates M-REIT performance across four indicators: total return, dividend yield, price volatility, and net asset value (NAV) growth. The sample comprises all M-REITs listed on Bursa Malaysia over the study period, with macroeconomic data sourced from the Department of Statistics Malaysia (DOSM) and Bank Negara Malaysia (BNM). The empirical findings indicate that inflation, as measured by the Consumer Price Index (CPI), exerts no statistically significant influence on total returns, dividend yield, or price volatility, but exhibits a marginally positive association with NAV growth, suggesting limited inflation-hedging capacity operating primarily through asset value appreciation. In contrast, the Overnight Policy Rate (OPR) demonstrates a statistically significant positive relationship with total returns, dividend yield, and volatility, indicating that monetary tightening amplifies yield compensation demands and heightens market risk for M-REIT investors. Collectively, these results establish interest rate movements as the dominant macroeconomic driver of M-REIT performance, whilst inflation plays a comparatively peripheral role. The study contributes Malaysia-specific empirical evidence to the extant REIT literature and offers practical implications for investors, fund managers, and policymakers navigating inflationary and elevated interest rate environments.
Husnizam Hosin, Mohd Lizam, Muhammad Syukri Abdullah· International journal of res...· 0 citations
This project provides an empirical investigation into the impact of major global currency movements on the valuation of the Indian Rupee (INR) over the decade from 2015 to 2025. Utilizing quantitative methodologies, including Pearson correlation analysis and multiple regression modeling, the study examines the relationship between the INR and five key global currencies: the US Dollar (USD), Euro (EUR), British Pound (GBP), Japanese Yen (JPY), and Chinese Yuan (CNY). The findings indicate a consistent, long-term depreciating trend of the Rupee, with the JPY/INR pair exhibiting the highest relative instability. Statistical analysis reveals a perfect positive correlation among global currencies relative to the INR, highlighting the systematic nature of external pressure on India’s exchange rate regime. Furthermore, the study identifies that macroeconomic factors, such as interest rate differentials, global crude oil prices, and capital flows, serve as primary drivers of these fluctuations. The research concludes by emphasizing the need for robust corporate hedging strategies, diversified trade invoicing, and proactive monetary management by the Reserve Bank of India to navigate global financial volatility and safeguard economic stability.
Umamaheswararao Gobbilla, M Anil· Research Digest on Engineeri...· 0 citations
This study examines the impact of Foreign Institutional Investors (FIIs), also referred to as Foreign Portfolio Investors (FPIs), on the growth, liquidity, and trading performance of the Indian capital market over the period 2015–2025. The primary objective is to assess whether foreign institutional investment contributes to market development and efficiency or leads to changes in market dynamics. Using secondary data collected from reliable financial and regulatory sources, the study evaluates the relationship between FII/FPI investment flows and key indicators of capital market performance. The empirical analysis is based on three widely recognized market indicators: the Market Capitalization Ratio (MCR), which measures the size of the capital market relative to Gross Domestic Product (GDP); the Turnover Ratio (TR), which reflects market liquidity and trading efficiency; and the Value Traded Ratio (VTR), which assesses trading activity in relation to the overall economy. To obtain accurate and meaningful results, the study applies the Augmented Dickey–Fuller (ADF) test to verify the stability of the time-series data and uses the Pairwise Granger Causality test to identify the direction of influence between FII/FPI investment flows and the selected indicators of the Indian capital market. The findings provide evidence on the extent to which foreign institutional investment influences market liquidity, trading activity, and overall market development. The study contributes to the understanding of the role of FIIs/FPIs in the Indian capital market and offers useful insights for policymakers, regulators, investors, and researchers in designing strategies that promote sustainable market growth while maintaining financial stability.
Mamta Singh· International Journal of Inn...· 0 citations
Foreign exchange risk has become one of the most significant financial challenges for organizations involved in international trade, foreign investment, and cross-border financial transactions. Exchange rate fluctuations directly affect import costs, export earnings, profitability, cash flows, and overall business performance. This study examines the emerging trends in managing foreign exchange risk in India by analysing various types of currency risks, modern hedging techniques, derivative instruments, technological innovations, and regulatory developments. A descriptive research design was adopted using both primary and secondary data collected from 100 respondents through a structured questionnaire. For analytical purposes, Multiple Regression Analysis was applied to examine the influence of hedging strategies, technological adoption, and regulatory support on effective foreign exchange risk management. The findings indicate that forward contracts, currency futures, options, swaps, artificial intelligence, digital treasury management systems, fintech solutions, and regulatory initiatives significantly strengthen foreign exchange risk management. The study concludes that technology-driven financial solutions and strategic risk management practices enhance organizational resilience, financial stability, and global competitiveness.
Malle Jayanth Yadav, M. Rajitha· International Journal of Cre...· 0 citations
