To Construct A Mathematical Model Which Could Be Used To Produce Dependable Forecast Of The Currency In Circulation In Nigeria By The Federal Government By The Central Bank Of Nigeria.

ABSTRACT

 The circulation of currency in Nigeria today is caused by the exchange of goods and services by individual or group of individuals in the society. The aims objectives of this study is to construct a mathematical model that could be used to predict reliable and dependable total amount of currency in circulation in Nigeria. The study estimated and isolated the components of time series existing in the data. The isolation was done using the addition and multiplicative models. The data for the study was collected from the CBN annual report statement of account for year en(led December 2003 and cover the period 1998 — 2003 on monthly basis. Time series analysis was applied to estimate and isolate the components of the multiplicative and additive models, the multiplicative provided a better forecast th the additive model.