PRESS RELEASE
AI Boosts Currency Stability Across Emerging Markets — New University of Abuja Study Reveals
Abuja, Nigeria
A new study led by Dr. Chukwuemeka Ifegwu Eke of the University of Abuja’s Department of Economics and Sustainable Development Centre has revealed that Artificial Intelligence (AI) readiness significantly enhances exchange-rate stability across emerging economies.
Drawing on panel data from 25 emerging nations between 2010 and 2024, the research—titled “Predictive Artificial Intelligence and the Stability of Financial Equilibrium in Emerging Economies: Dynamic and Lagged Adjustment Analyses”—demonstrates that countries with higher levels of AI development and digital finance adoption experience less currency volatility and faster adjustment to financial shocks.
“Our findings show that AI capacity, fintech innovation, and digital inclusion now play measurable roles in stabilizing exchange rates,” said Dr. Eke. “This means emerging economies can leverage technology not only for growth but also for financial resilience.”
The study employed advanced econometric models, including fixed-effects and dynamic lag adjustment analyses, to estimate how AI, fintech transactions, and macroeconomic fundamentals influence financial equilibrium.
Results indicate that:
A 1-point increase in AI readiness correlates with a measurable reduction in exchange-rate volatility.
Fintech expansion initially raises volatility during early adoption phases but stabilizes as digital finance systems mature.
Inflation and tight monetary policy remain key drivers of short-term instability, while AI, internet penetration, and mobile money use consistently dampen shocks.
The dynamic model reveals that currency-market shocks decay within 2–3 years, implying a stable adjustment path for digitally advanced economies.
“This research underscores the need for African and Asian economies to integrate AI into monetary policy design,” Dr. Eke added. “Technological literacy and AI infrastructure are now as vital to financial stability as traditional fiscal discipline.”
The paper also recommends that governments:
Strengthen AI governance frameworks in central banks and financial institutions.
Promote digital financial inclusion through mobile platforms and central bank digital currencies (CBDCs).
Support AI-based forecasting systems for real-time policy response to market shocks.
The findings contribute to ongoing policy discussions by the World Bank, IMF, and African Development Bank on the intersection of AI, fintech, and economic governance in developing regions.
For media inquiries or collaboration, contact:
📩 Dr. Chukwuemeka Ifegwu Eke
Department of Economics / Sustainable Development Centre
University of Abuja, Nigeria
✉️ Chukwuemeka.eke@uniabuja.edu.ng
