Analysis of World Crude Palm Oil Prices on the Real Exchange Rate: A Case Study of Indonesia and Malaysia

2015 ◽  
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Palm Oil ◽  
Oil Prices ◽  
Crude Palm Oil ◽  
The Real

scholarly journals ANALISIS PENGARUH HARGA CRUDE PALM OIL (CPO) DUNIA TERHADAP NILAI TUKAR RIIL RUPIAH

2014 ◽  
Vol 16 (4) ◽  
pp. 315-338
Author(s):  
Hilda Aprina
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Palm Oil ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Simultaneous Equation Model ◽  
Crude Palm Oil ◽  
The Real ◽  
World Price ◽  
The World

Indonesia is a biggest producer of Crude Palm Oil (CPO) in the world. Production and export volumes continued to increase from year to year. CPO products have an important role in the Indonesian economy, one of them as the country’s largest foreign exchange earner in the plantation sector. Given that Indonesia has adopted a floating exchange rate regime since 1978, the export of commodities such as palm oil will have an important influence on the real exchange rate. Therefore, this study aimed to see how much the world price of CPO influence the development of the real exchange rate of rupiah. The analytical method used is a simultaneous equation model using time series data from 1984 to 2011. The results showed that the increase in CPO price will lead to real exchange rate rupiah appreciated. Therefore, Indonesia as a major producer of CPO should be able to control the world price of crude palm oil in order to control the stability of the real exchange rate of the rupiah. Keywords : world CPO price, simultaneous equation model, the real exchange rate of rupiah.JEL Classification: E2

scholarly journals Oil Prices and the Real Exchange Rate in Nigeria

2012 ◽  
Vol 4 (6) ◽  
Author(s):  
Victor E. Oriavwote ◽  
Nathanael O. Eriemo
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Oil Prices ◽  
The Real

Oil prices and the real exchange rate in oil-exporting countries

2012 ◽  
Vol 36 (4) ◽  
pp. 375-382 ◽  
Author(s):  
Usama Al-mulali ◽  
Che Normee Binti Che Sab
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Oil Prices ◽  
The Real

scholarly journals THE IMPACT OF CRUDE PALM OIL PRICE ON RUPIAH’S RATE

2014 ◽  
Vol 16 (4) ◽  
pp. 295-314
Author(s):  
Hilda Aprina
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Palm Oil ◽  
Exchange Rate Regime ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Crude Palm Oil ◽  
The World ◽  
The Stability ◽  
The Impact

Indonesia is a largest producer of Crude Palm Oil in the world, with increasing production and export from time to time. Since Indonesia now adopts a floating exchange rate regime, the export of such commodity may influence the real exchange rate, and this is the aim of this paper. By applying simultaneous equation model on data from 1984 to 2011, we conclude that the increase in CPO price will lead to an appreciation of Rupiah’s real exchange rate. As a major producer of CPO, the authority should be able to control the world price of crude palm oil to help controlling the stability of Rupiah’s rate. Keywords: CPO, simultaneous equation, real exchange rate.JEL Classification: E2

scholarly journals THE INFLUENCE OF OIL PRICES ON INDONESIA’S EXCHANGE RATE

2019 ◽  
Vol 21 (3) ◽  
pp. 303-322 ◽  
Author(s):  
Seema Wati Narayan ◽  
Telisa Falianty ◽  
Lutzardo Tobing
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Exchange Rate Regime ◽  
Oil Prices ◽  
The Real ◽  
Float Exchange Rate ◽  
Long Run ◽  
The Us ◽  
Us Dollar

This study tests for a long-run relation between oil prices and the rupiah–US dollarexchange rate. We discover, first, that the long-run cointegration relation between oilprices and the real exchange rate (RER) is sensitive to different exchange rate regimesin Indonesia. Second, we find a long-run cointegrating relation between oil prices andthe RER over the float exchange rate regime. However, in the managed float period,there is no evidence of a long-run relation between oil prices and the RER. In the longrun, higher oil prices lead to an appreciation of the rupiah against the US dollar in thefloat period (post-August 1997 period). We demonstrate that these results are robust todifferent data frequencies.

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