Vol. 2 No. 1 (2026): February
Articles

FOREIGN EXCHANGE MANAGEMENT AND PROFITABILITY OF DEPOSIT MONEY BANKS IN NIGERIA

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  • Williams, Adekunle Christopher,
  • Adu, Cecilia Adurayemi
Williams, Adekunle Christopher
University Of Education Ijanikin Oto Lagos State Nigeria
Adu, Cecilia Adurayemi
University Igbesa Ogun State Nigeria

Published 2026-02-01

Keywords

  • Key words: foreign exchange management, profitability, ROA, ROE, DMBs

Abstract

This study investigated the effect of foreign exchange management on the profitability of Deposit Money Banks (DMBs) in Nigeria by obtaining data from five banks between 2020-2024.Regression analytical method was adopted for this study. It was found out that foreign reserves significantly and positively affected return on asset. The study concluded that foreign exchange management profoundly influenced bank profitability in Nigeria. It was recommended that there should be forex risk management and foreign reserves for strategic planning, and investing in exchange rate forecasting tools for DMBs.

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