ABSTRACT
This study examines the impact of dollar increases on the Nigerian economy, focusing on key economic indicators such as trade balance, inflation, and GDP growth over the period 2012-2021. Descriptive statistics reveal significant variability in exchange rates, trade balances, inflation rates, GDP, and dollar increases. Analysis of historical trends indicates fluctuations in economic indicators, with notable periods of currency depreciation, trade balance, inflation spikes, and GDP growth. Correlation analysis demonstrates nuanced relationships between dollar increases and economic indicators, with varying impacts on trade balances, inflation, and GDP. Regression analysis further explores the combined impact of dollar increases, trade balances, and inflation on GDP, revealing significant effects of inflation while other factors show negligible impact. Recommendations include measures to manage inflation, enhance trade balances, stabilize exchange rates, promote economic diversification, and encourage continuous monitoring and research to inform evidence-based policymaking. Implementation of these recommendations can help Nigeria navigate challenges posed by dollar increases and foster sustainable economic development.
