Iyere, Samuel IheonkhanKolawole, Mudasiru Ibrahim2023-12-102023-12-102019-06-11Adetiloye, K.A. and Oyerinde D.T. (2009) The Impact of external reserves and investment on the wealth of Nigerians, Covenant University, Nigeria. Adetiloye, K. A (2007) An evaluation of the impact of Central Bank of Nigeria management of external reserve on the exchange rate Lagos Journal of Banking, Finance and Economic Issues Vol. 1 No. 1 pp 135-150. Aizenman, J. (2007), Huge Holding of international reserves and the emerging global economic architecture. USCS and the NBER. http://dx.doi.org/10.3386/wl3277 Aizenman, J and Lee, J. (2006), International reserves: precautionary versus mercantilist views: Theory and Evidence. NBER working paper, No. 11366. Akaninyene U.A, (2014) Foreign reserves accumulation and macro economic environment: Nigerian experience, International Journal of economics and finance Aluko, J.J. (2007), The monetization of Nigeria's foreign exchange inflows, CBN Bullion Vol.31(2). studies, Vol.8, No. 1. Alvan I (2017), https://www.premiumtimesng.com/business/business-news/229288- cbn-creates-special-window-investors-exporters.html Archer, D. and Halliday, J. (1998). The rationale for Holding foreign currency reserves. Reserve Bank of New Zealand Bulletin, Vol.61 No. 4, pp 346-354 forex- ■ Archibong P.E. (1982) The composition of Nigeria's external reserve and the structure of the balance of payment: An empirical study Aremu, J.A, Ojubamise 0. and Essienekak (2006) Dictionary of Trade Terms: Understanding Multilateral Trade System and Globalisation. Lagos, Development Information Network. Benigno^l and Fornaro L (2012) Reserve accumulation, growth and financial crisis. CEPR Discussion papers, Centre for Economic Performance, LSE. Borivije D. Kruskovic and Tina Maricic (2015) Empirical Analysis of the impact of foreign exchange reserves to Economic growth in emerging economics. Applied economics and Finance VoL 2. No. 1; Published by Redfame publishing URL: http://aef.redfame.com Broz L. (1998) The origin of Central Banking and solution to the free rider problem Harvard international Review. Summer 80-81. Campbell R.M. and Stanley L.B. (1990) Macroeconomics, Balance of Payments, Mcgraw Hill/Irwin, NY, USA, page 378-381 CBN, (2018, 2017) www.cbn.gov.ng/externalreserve.asp CBN, (2007) Building and managing external reserves for economic development. The CBN Bullion. Vol.31 No. 2 CBN ACT, (1991) Section 24, External Reserves Assets Corsetti, G.P, Presenti and Roubini (1999) What caused the Asian currency and financial crisis? Japan and the world economy pp 305-373 Diamond, R.W. (2008) Macro economics, origin, and history in Durlauf, Steven N, Blume, Lawrence E, the palgrave Dictionary of Economics, palgrave Macmillan doi 10.105719780230226203 ISBN 978033378676-5 Dooley, M.P, Folkerts-Landau, D. and Garber, P. (2004), The revived Bretons Woods Systems International Journal of Finance and Economics, vol. 9, No.4 pp. 307-313 Drama Bedi Guy Herve, (2016), An Examination of foreign exchange reserves and inflation relationship of four West African Countries (Nigeria, Ghana, Senegal Cote D' Voire), Journal of Finance arid Economics Vol. 4 No. 4 2016. Edward C, Kamin S and Rogers, J (2000) Output and real exchange rate in developing countries: An application to Mexico Journal of Development Economics, Vol.61 pp 85-109 Egwakhe, AJ and Osabuohien S.C.O (2008) external reserves and the Nigeria economy, published in African Journal of Business and Economic Research. Vol.3 No.2 Eichengreen B. and Mathiesin DJ. (2000), The currency composition of foreign exchange reserves: Retrospect and Prospect, IMF working paper.https://keffi.nsuk.edu.ng/handle/20.500.14448/747The need to account for the effect of external reserves has generated a lot of argument around the world as to where it is necessary for nation to account for external reserve or not. Thus study examines the effect of external reserves on the macro-economic stability of Nigeria. For the period of thirty-two years from 1985 to 2017. The dependent variables were GDP, Exchange rate, inflation rate and unemployment rate while the independent variable is the external reserves. The ordinary least squares was used to analyse the data, and the results showed that the external reserves have effect on unemployment rate, inflation rate, exchange rate and GDP. Therefore the study concludes that external reserves have effect on Macro- economic stability of Nigeria. The study recommends among others that the Federal Government should diversity her revenue base to Agriculture, Hospitality and tourism sectors among other sectors in order to remain stable even when there is financial and economic crisis around the world.enExternal reserves, Unemployment rate, Inflation rate, Exchange rate and GDPArticle