ABSTRACT
This work is intended to critically examine the effect of the current exchange rate policy on the manufacturing sector. Anammco Manufacturing Company was used as the case study. The exchange rate regime is a very crucial monetary tool for shaping the thrust and direction of a national’s economy. In 1995 a dual exchange rate policy was introduced and this policy was still maintained in 1996-2003.
Review of related literature highlighted the evolution of exchange rate and the various mechanisms and institutions that have come to be referred to as part of the international monetary system (IMS). It also pointed to the fact that various exchange control measure had been used before the SAP. And how the current exchange rate policy have affected the manufacturing sector.
The research method adopted was the survey method and the sample company was Anammco, Manufacturing Company.
Questionnaire was used to collect data while percentages were calculated for the responses given to the questionnaire. The study found out that the current exchange rate policy was an important factor in increasing the unit cost of production. It also discovered that it encouraged local sourcing of hitherto imported inputs and findings alternative inputs locally and that low capacity utilisation during this period of the current exchange rate was caused by the inadequacy of supply of forex to the manufacturing sector.
Finally, it recommended that government should correct the perceived deficiencies of the programme, adequate incentives should be provided to the local manufacturing firms that are engaged in the production of import- substitutes of industrial inputs. It also recommended that banks and other financial institutions should be encouraged to give more financial assistance to the manufacturing sector, and the publics, and private sector should step up financial allocation to research and development activities.
TABLE OF CONTENTS
COVER PAGEI
TITLE PAGEII
APPROVAL PAGEIII
DEDICATIONIV
ACKNOWLEDGEMENTV
ABSTRACTVII
TABLE OF CONTENTSIX
CHAPTER ONE
1.INTRODUCTION1
1.1GENERAL BACKGROUND TO THE SUBJECT MATTER1
1.2PROBLEMS ASSOCIATED WITH THE
SUBJECT MATTER5
1.3PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH.7
1.4THE IMPORTANCE OF STUDYING THE AREA9
1.5DEFINITION OF IMPORTANT TERMS9
1.6(CHAPTER) REFERENCE (USING APA METHOD)11
CHAPTER TWO
2.LITERATURE REVIEW12
2.1THE ORIGIN OF THOUGHT WITHIN THE
SUBJECT AREA15
2.2SCHOOL OF THOUGHT RELEVANT TO THE PROBLEM OF STUDY18
2.3DIFFERENT METHODS OF STUDYING THE PROBLEM23
2.4SUMMARY25
2.5REFERENCES28
CHAPTER THREE
3.CONCLUSION29
3.1DATA PRESENTATION (HIGHLIGHTS OF THE STUDY)29
3.2ANALYSIS OF THE DATA30
3.3RECOMMENDATION38
3.4CONCLUSIONS41
3.5REFERENCES42