Abstract:

This study analyzes the influence currency performance has on the international business of both Nigeria and Ghana. In the context of this study, currency performance would imply currency depreciation. The research adopted the Ordinary Least Square Method for analysis after the unit root tests of variables for both countries showed it was integrated at order I(1). The theory, which the study adopts, is the Standard Theory of International trade. The results showed that currency performance positively and significantly affects foreign direct investment in Nigeria as well as Ghana. For the impact on balance of payment, the findings revealed currency performance positively affects balance of payments in Nigeria. However, this is found to be insignificant. For Ghana, the result shows that currency performance has a negative relationship with the balance of payments. From the findings, it is important that the components of the balance of payment be studied closely in order to identify trends that a country can find harmful or beneficial to its economy. Also, the capital market should be internationalized such that foreign institutional investors can invest in Nigerian-based as well as Ghanaian-based instruments.