Volume 4, Issue 1, June 2019, Page: 15-18
The Effect of Exchange Rates on Nigerians Currency and Projecting the Naira for the Year 2025
Ledisi Giok Kabari, Department of Computer Science, Faculty of Applied Sciences, Ken Saro-Wiwa Polytechnic, Bori, Nigeria
Osuo-Genseleke Macarthy, Department of Computer Science, Faculty of Natural and Applied Sciences, Ignatius Ajuru University, Port Harcourt, Nigeria
Received: Mar. 2, 2019;       Accepted: Apr. 2, 2019;       Published: Apr. 26, 2019
DOI: 10.11648/j.ajdmkd.20190401.13      View  31      Downloads  13
Abstract
Exchange rate instability is a good pointer for monitoring Nigerian currency and it has always been a key economic indicator to sustain Nigeria and her economic growth. Linear regression is a great statistical tool used to find, predict and also to assess whether there is an undeviating correlation and dependences between numerical variables. This study investigates the instabilities in exchange rate of five countries’ currencies which includes European Euro, United Kingdom Pounds, Saudi Arabian Riyal, Switzerland swissf and the Nigerian Naira with key interest on Naira. This was done to ascertain whether changes in other countries will affect the exchange rate of Naira. The stable and fluctuating exchange rate of these countries were examined and used to plot a digital signal structure. Data used for this study is the daily exchange rate of five countries’ currencies (Euro, Pounds, Riyal, Swissf and Naira) from 12th October, 2005 to 2nd October, 2018 obtained from https://www.cbn.gov.ng/rates/exchratebycurrency.asp. We applied linear regression tool on our source data and also applied the equation for prediction on our coefficients so we were able to predict the exchange for Naira come year 2025 which gave us N311.076. The rate of accuracy (R2) and the coefficient of our model were used in predicting Nigerians exchange rate for year 2025. The 99% rate of accuracy of our model reveals that our model is perfect and the impression from this study is that the exchange rate of other countries affects Naira.
Keywords
Exchange Rate, Machine Learning, Linear Regression, Digital Signal Processing, Supervised Machine Learning, Unsupervised Machine Learning
To cite this article
Ledisi Giok Kabari, Osuo-Genseleke Macarthy, The Effect of Exchange Rates on Nigerians Currency and Projecting the Naira for the Year 2025, American Journal of Data Mining and Knowledge Discovery. Vol. 4, No. 1, 2019, pp. 15-18. doi: 10.11648/j.ajdmkd.20190401.13
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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