The Impact Of Exchange Rate Fluctuations On The Performance Of The Emerging Islamic Stock Indices For The Period (2010-2019)

2019 ◽  
pp. 613
Author(s):  
Besseba Abdelkadir ◽  
Mohamed Samir Benayad ◽  
Mostapha Redif
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Fluctuations ◽  
Stock Indices ◽  
The Impact

The nature of the shock matters: NiGEM estimations of the macroeconomic effects of recent dollar and euro fluctuations

2018 ◽  
Vol 244 ◽  
pp. R30-R38 ◽  
Author(s):  
Sophie Haincourt
Keyword(s):  
Exchange Rate ◽  
Risk Premium ◽  
Structural Model ◽  
Domestic Activity ◽  
Exchange Rate Fluctuations ◽  
Effective Exchange ◽  
Exchange Markets ◽  
Exchange Rate Shocks ◽  
Effective Exchange Rate ◽  
The Impact

Exchange rate fluctuations have been particularly large since mid-2014, displaying divergent developments across the period. The nominal effective exchange rate of the dollar has appreciated by 15 per cent since June 2014, masking a 25 per cent appreciation to December 2016 followed by a depreciation of 8 per cent. Changes in the euro have turned positive after being negative. This article attempts to measure the impact of currency changes on domestic activity, accounting for the source of fluctuations. More specifically, by using the multi-country structural model NiGEM, we show that different types of exchange rate shocks can have different macroeconomic outcomes. Focusing on the period from January 2017 to February 2018, we show that the depreciation of the dollar, stemming mostly from changes in sentiment in foreign exchange markets, would in fact have been detrimental to US growth. A weaker currency, in this particular case, turned out to be no recipe for stronger growth. Similarly, the appreciation of the euro, triggered by a fall in the risk premium of the currency, may have been positive for growth. There are caveats to the exercise, but the results are nonetheless consistent with previous research pointing to the importance of the nature of the exchange rate shocks in estimating their impact on prices and growth.

scholarly journals Coping with the Exceptional Economic Problems in Turkey: A Field Survey on SMES

2019 ◽  
Vol 12 (2) ◽  
pp. 109-126 ◽  
Author(s):  
Ercan Özen
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
Developed Countries ◽  
Business Owners ◽  
Important Place ◽  
Exchange Rate Fluctuations ◽  
The Exchange Rate ◽  
The Impact

Abstract Developing countries need higher economic growth to reach the level of developed countries. When developing countries exceed the potential economic growth, problems, such as, high external debt and high current deficit emerge. Such situations increase the financial risk of the country; in addition, international political risks, fluctuations in capital inflows and some manipulative movements have subjected countries to extreme exchange rate fluctuations. Purposes of this research: (1) to uncover the impact of high exchange rate volatility on small business activities and (2) to determine whether the level of exposure of the exchange rate shock on business owners varies by age. The methodology of the study involved a survey administered to 390 small and medium-sized enterprises (SMEs). The findings of the study show that after a period of significant exchange rate fluctuations, business activities were negatively affected, sales decreased, and job cuts increased. On the other hand, the exchange rate effect was mostly felt by all business owners of different ages. According to the study, it can be concluded that small enterprises are vulnerable to rising exchange rate volatility. The effect on SMEs with more work experience is not different. In order to alleviate the effects of adverse exchange rate movements, enterprises should be more cautious in their activities. Two suggestions can be made at this point: (i) Governments should follow optimal growth policies and (ii) Small businesses that have an important place in the economy should be made aware of the exchange rate risk and crisis management.

scholarly journals The impact of some macroeconomic indicators on exchange rate fluctuations in Sudan in the period (1990- 2016): أثر بعض مؤشرات الاقتصاد الكلي على تقلبات أسعار الصرف في السودان في الفترة (1990- 2016)

2020 ◽  
Vol 4 (10) ◽  
Author(s):  
Abdelsamie Eltaeb Tayfor
Keyword(s):  
Exchange Rate ◽  
Time Series Regression ◽  
Econometric Methods ◽  
Exchange Rate Fluctuations ◽  
Data Collection And Analysis ◽  
Macroeconomic Indicators ◽  
Increase Productivity ◽  
The Exchange Rate ◽  
The Impact

The study aimed to identify the determinants and economic variables that affect the exchange rate in Sudan during the period (1990- 2016). The study used the descriptive analytical approach in data collection and analysis as well as the use of econometric methods in the construction of economic models and analysis of time series regression models to verify the existence of a long- term integrative relationship between independent variables and dependent variable. The results of the study showed a positive correlation between GDP, degree of economic openness, inflation and exchange rate during the study years, and an inverse relationship between money supply and exchange rate. The study recommended the need to move away from administrative decisions in determining the exchange rate, while achieving greater flexibility in the exchange rate, and increased interest in bank financing of projects that lead to increase productivity and improve GDP and thus improve the exchange rate by encouraging domestic exports.

scholarly journals Impacts of inflation on gold price and exchange rate in Vietnam: time-varying vs fixed coefficient cointegrations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pham Dinh Long ◽  
Bui Quang Hien ◽  
Pham Thi Bich Ngoc
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Gold Price ◽  
Time Varying ◽  
Coefficient Estimates ◽  
Content Type ◽  
Exchange Rate Fluctuations ◽  
The Impact ◽  
Shed Light

PurposeThe paper aims to shed light on the effects of inflation on gold price and exchange rate in Vietnam by using time-varying cointegration.Design/methodology/approachUsing cointegration techniques with fixed coefficient and time-varying coefficient, the study exams the impacts of inflation in models and compares the results through coefficient estimates.FindingsA significant inflation impacts are found with the time-varying cointegration but not with the fixed coefficient cointegration models. Moreover, monetary policy affects exchange rate not only directly via its instruments as money supply and interest rate but indirectly via inflation. Also, interest rate is one of the determinants of gold price.Originality/valueTo the best of our knowledge, this paper is the first to use time-varying cointegration to analyze the impact of inflation on the gold price and exchange rate in Vietnam. Gold price and exchange rate fluctuations are always the essential and striking issues, which have been emphasized by economists and policymakers. In macroeconometric researches, cointegration models are often used to analyze the long-term relations between variables. Attentionally, applied models show a limitation when estimating coefficients are fixed. This characteristic might not really match with the data properties and the variation of the economy. Currently, time-varying cointegration models are emerging method to solve the above issue.

scholarly journals Asymmetric Exchange Rate Pass-Through in Southeast Asian Rice Trade

2021 ◽  
pp. 1-34
Author(s):  
Taylor Wiseman ◽  
Jeff Luckstead ◽  
Alvaro Durand-Morat
Keyword(s):  
Exchange Rate ◽  
Exchange Rate Volatility ◽  
The Philippines ◽  
Distributed Lag ◽  
Asian Rice ◽  
Exchange Rate Fluctuations ◽  
Pass Through ◽  
Exchange Rate Pass Through ◽  
The Impact ◽  
Rice Trade

Abstract Asian countries consume approximately 90% of the world’s rice supply. Between 2007 and 2014, Thailand, Vietnam, and India accounted for 60% of the world’s exports of rice. A nonlinear autoregressive distributed lag (NARDL) econometric model is utilized to estimate the impact of exchange rate fluctuations on rice trade in Southeast Asia. Focusing on the largest importing countries and exporting country by volume, the analysis considers Malaysian, Indonesian, the Philippines, and Chinese rice imports from Thailand. Results show that importing countries’ state trading enterprises (STEs) generally do not follow profit-maximizing behavior in reacting to exchange rate volatility.

scholarly journals Exports, Exchange Rates and Productivity: An Analysis of the Japanese Manufacturing Sectors

2016 ◽  
Vol 6 (1) ◽  
pp. 7
Author(s):  
Atsuyuki Kato
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Sample Selection ◽  
Specific Productivity ◽  
Negative Effects ◽  
Firm Level ◽  
Transportation Equipment ◽  
Exchange Rate Fluctuations ◽  
Exchange Rate Changes ◽  
The Impact

This paper examines the effects of exchange rate changes and productivity on manufacturing exports. Using the dataset of the Japanese manufacturing firms during the period, 2002 – 2012, we discuss if exchange rate fluctuations deter export activities and if productivity and markup differences affect it. For this study, we estimate both firm specific productivity and markups by the production function based approaches and incorporate them into the Heckman sample selection model. Our results show exchange rates are important factors to affect firm-level exports as a whole while temporal aggregation should be carefully considered. In addition, this study also reveals that productivity and markup give different impacts on firm-level exports across industries. In the transportation equipment industry, negative effects of appreciation on exports are partly mitigated by higher productivity. Markups are positively related to exports in the electronics industry while negative in the transportation equipment. Neither productivity nor markup absorbs the impact of exchange rate changes in the machinery industry. Those findings imply that stability of exchange rates is very important while the effective trade policy may vary across industries following their trade structure.

scholarly journals The Impact of Currency Shocks on Sanandaj Municipality Revenues in Iran

2020 ◽  
Vol 10 (1) ◽  
pp. 1-9
Author(s):  
Shaho Heidari Gandoman ◽  
Shahla Nouri
Keyword(s):  
Exchange Rate ◽  
Data Analysis ◽  
Significant Relationship ◽  
Main Hypothesis ◽  
Statistical Population ◽  
Correlation Test ◽  
Exchange Rate Fluctuations ◽  
The Impact ◽  
The Relationship ◽  
Negative Exchange

Exchange rate fluctuations have been affecting economic demand in recent years. The purpose of this study is to review the effects of exchange shocks on Sanandaj Municipality Revenues. The statistical population is Sanandaj municipality during 2006-2018 and SPSS, Eviews softwares were used for data analysis. The results show that since the correlation test is not significant at the level of 0.95, there is no significant relationship between two variables of municipality income and exchange fluctuations. Thus, the main hypothesis is rejected. In other words, exchange shocks have no impact on Sanandaj municipality revenues. Also based on the correlation test, since the correlation test is not significant at the level of 0.95, the relationship between the two variables of municipality income and negative exchange fluctuations is not significant and the sub-hypothesis (1) is rejected, and finally based on correlation test, since the correlation test is not significant at the level of 0.95, the relationship between two variables of municipality and positive exchange fluctuations is not significant. Thus, the sub-hypothesis (2) is rejected as well. It could be concluded that, Sanandaj municipality revenues do not follow the currency rate fluctuations.

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