_____________________________________________________________________________________________________ *Corresponding author: E-mail: david.umoru@edouniversity.edu.ng, david.umoru@yahoo.com; Asian J. Econ. Busin. Acc., vol. 23, no. 18, pp. 105-116, 2023 Asian Journal of Economics, Business and Accounting Volume 23, Issue 18, Page 105-116, 2023; Article no.AJEBA.103429 ISSN: 2456-639X Reactions of Stock Prices to Changes in Exchange Rate and Monetary Policy Rate of Central Banking System: Symmetry or Asymmetry Solomon Edem Effiong a , Odion Jonah Benson a and David Umoru b* a Department of Economics, Wellspring University, Irhirhi Airport Road, Benin City, Edo State, Nigeria. b Department of Economics, Edo State University, Uzairue, Iyamho, Nigeria. Authors’ contributions This work was carried out in collaboration among all authors. Authors SEE and OJB designed the study, wrote the protocol and wrote the first draft of the manuscript. Author DU reviewed the literature specified the models and performed the statistical analysis. All authors read and approved the final manuscript. Article Information DOI: 10.9734/AJEBA/2023/v23i181061 Open Peer Review History: This journal follows the Advanced Open Peer Review policy. Identity of the Reviewers, Editor(s) and additional Reviewers, peer review comments, different versions of the manuscript, comments of the editors, etc are available here: https://www.sdiarticle5.com/review-history/103429 Received: 26/05/2023 Accepted: 24/07/2023 Published: 05/08/2023 ABSTRACT This study examines the reactions of stock prices to variations in the monetary policy rate of the central banks and exchange rate shock, which is if the responses are similar or differ in a comparative analysis between developed and emerging stock markets. Data were obtained on daily stock market prices, exchange rates, and variations in policy rate. The panel non-linear autoregressive distributed lag (NARDL) estimation method was utilized for this study. The NARDL showed the existence of a significant asymmetric long-run link between stock market price, exchange rate, and variation in monetary policy rate variables. For developing countries, the long- run results show that a percentage rise in the currency rate stimulated a 0.596% increase in the price of stock while it resulted in a 0.574% drop in the prices of stock. The same results were Original Research Article