Nigerian Stock Exchange Outlook in Relation to Cross-Exchange Rates and COVID-19 Global Pandemic: An

The article looked at the prognosis for the Nigerian Stock Exchange (NSE) in terms of cross-exchange rates and the worldwide pandemic of COVID-19. The All-shares index (ASI), cross rates on the US dollar (USEXR), and UK pound sterling (UKEXR) monthly data sets spanned the years 2008 to 2020. The variables are I in the Auxiliary Autoregressive Order Three (AAR(3)) order of integration test (OIT) and ADF unit root test (1). For the long-run relationship test, the Johansen co-integration test was applied. Short-run and long-run vector error correction models (VECM) and a single multivariate regression equation were specified. The findings revealed that USEXR has a considerable negative impact on the NSE market in both the short and long term. In the short and long term, UKEXR has a considerable beneficial influence on NSE. UKEXR has a negative impact on NSE at lag 1. USEXR, on the other hand, has a stronger negative impact on NSE than UKEXR. This might be due to USEXR's global market position. The COVID-19 pandemic has a negative impact on the NSE prognosis, although it is statistically negligible over the research period. Throughout general, the negative impact of cross currency rates on the NSE market is mirrored in the economy. As a result, the government should establish laws and refrain from undertaking initiatives that weaken the naira in the foreign currency market.

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