Depending on methods of transmission, cashless policy could significantly redirect macroeconomic
variables. However, the influence of cashless policy tools on the Nigerian exchange rate management has not been
extensively discussed in the academic literature. Therefore, this study assessed the nexus between cashless policy and
exchange rate in Nigeria covering the period of 2014Q1 and 2023Q4. The variables captured in this study include
exchange rate (measured by official exchange rate) and cashless policy instruments – the value of Automated Teller
Machine (ATM), the value of Point of Sale (POS), the value of Mobile Payment (MP), the value of WebPay (WP) and the
value of cheques. The data were gathered from Central Bank of Nigeria (CBN) statistical bulletin of 2023. The techniques
such as descriptive statistics, correlation analysis, ADF unit root test, co-integration test, and Autoregressive Distributed
Lag (ARDL) were used to analyze the data collected. The results of ARDL show the existence of short run connection
between cashless policy instruments and exchange rate in Nigeria. Majorly, ATM, and Mobile Payment are the main
instruments of exchange rate stability in the short run. However, there is no long run interaction among the variables of
study. The study concludes that cashless policy implementation serves as lubricant to lessen exchange rate problem in
Nigeria within a short period. It was therefore suggested that the Nigeria’s apex institution should persuade banks to
provide quality ATM services for their customers as this will help to boost confidence of the customers and facilitate
online payment system rather than physical payment transaction.