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The objective of the study was to measure the causal relationship existing between foreign exchange Parallel Premium and balance of payment position in Nigeria using grander causality methodology for analysis. The analyses from the pair wise granger causality result reveals that Foreign Exchange Parallel Premium and Balance of payment in Nigeria have a unidirectional relationship On the basis of the above findings, the study concludes that foreign exchange Parallel Premium has been seen to have a serious unidirectional influences to Macroeconomic standings and financial system operation in Nigeria.It was recommended that the nexus between Foreign Exchange Parallel Premium and balance of payment series needs to be effectively managed by eliminating black market activities in exchange rates. This Strategy will boast the economy given the fact that the economic standing of any nation can be enhanced by effective management of exchange rate volatility and black market problems.
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Ezema et al. (2020) studied this question.
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