scholarly journals Crude Oil Price and Exchange Rates - The Case of Malaysia and Brunei

2019 ◽  
Vol 10 (5) ◽  
pp. 1
Author(s):  
Abdul Razak Abdul Hadi ◽  
Hafezali Iqbal Hussain ◽  
Zalina Zainudin ◽  
Raja Rehan
Keyword(s):  
Exchange Rates ◽  
Crude Oil ◽  
Debt Crisis ◽  
Oil Price ◽  
Crude Oil Price ◽  
Equilibrium Relationship ◽  
National Currencies ◽  
Short Run ◽  
Data Points ◽  
Dynamic Relationships

This study is driven by the motivation to investigate the impacts crude oil price fluctuations on Malaysian and Brunei exchange rates as proxied by RM/USD and BD/USD respectively. Even though there is no specific economic theories that can help explain the interaction between commodity and foreign exchange markets, the study is research-worthy as both Malaysia and Brunei are major oil-exporting countries in South East Asia. This study is considered quite extensive involving 370 data points spanning from January 1988 till October 2018. Using Engle-Granger 2-Step Cointegration Test (1987) as an estimation tool, the empirical results show the presence of long-term equilibrium relationship between the two national currencies and crude oil price. Interestingly, there is also a significant short-run causality between them in both countries. With respect to the short-run dynamics, there is a unidirectional causality running from crude oil price to the two exchange rates. The study also posits that RM is less prone to changes in crude oil price during the period before Asian Debt Crisis in 1997. After the removal of RM peg in June 2005, RM is found to be more sensitive towards changes in crude oil price over short haul. In summary, the significant equilibrium and dynamic relationships between the national currencies and crude oil price are therefore confirmed and perhaps the quotation of crude oil price in USD could be one of the explanations.

scholarly journals PENGARUH NILAI TUKAR DAN HARGA MINYAK MENTAH DUNIA TERHADAP RETURN SAHAM PT. INDOMOBIL SUKSES INTERNASIONAL TBK. DAN PT. ASTRA INTERNASIONAL TBK. TAHUN 2006-2016

2017 ◽  
Vol 1 (2) ◽  
pp. 61
Author(s):  
Arif Fadlilah ◽  
Sri Hermuningsih
Keyword(s):  
Exchange Rates ◽  
Crude Oil ◽  
Stock Prices ◽  
Stock Return ◽  
T Test ◽  
Oil Price ◽  
Crude Oils ◽  
Crude Oil Price ◽  
F Test ◽  
Crude Oil Prices

This research is meant to find out the influence of exchange rates and crude oil price either simultaneous or partial to the stock return at PT. Indomobil Sukses Internasional Tbk. and PT Astra Internasional Tbk. The data which is applied in this research is the automotive companies’ stock prices, Rupiah exchange rates, and crude oil price from 2006 to 2016. The multiple linear regressions are applied as the analysis technique by carrying out F test and t test. Based on the F test it is found that simultaneously the rupiah exchange rates and crude oil prices have influence to the stock return. Based on the t test it is found that partially the rupiah exchange rates have no influence to PT. Indomobil Sukses Internasional Tbk stock return but have influence to PT. Astra Internasional Tbk stock return and crude oils prices have influence to stock return. t test indicates the dominant influence to the stock return PT. Indomobil Sukses International Tbk is crude oils variable and stock return PT. Astra International Tbk is exchange rates variable

scholarly journals Econometric Analysis of Determinants of Real Effective Exchange Rate in Nigeria (1960-2015)

2016 ◽  
Vol 9 (1) ◽  
pp. 62-80 ◽  
Author(s):  
Waheed Ibrahim
Keyword(s):  
Exchange Rate ◽  
Crude Oil ◽  
Terms Of Trade ◽  
Oil Price ◽  
Real Effective Exchange Rate ◽  
Crude Oil Price ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

Abstract This study investigates the determinants of real effective exchange rate in Nigeria for the period between 1960 and 2015 using the vector error correction mechanism to separate long run from the short run fundamentals. The findings from the regression estimates revealed that; terms of trade, openness of the economy, net capital inflow and total government expenditure were the major long run determinants of real effective exchange rate in the country while variables such as; broad money supply (M2), nominal effective exchange rate, structural adjustment program dummy, June 12 crisis and change to civil rule dummies were revealed as the major short run determinants of exchange rate in Nigeria between 1960 and 2015. The study concludes by recommending that since the major variable of terms of trade (crude oil price) is out of the government control, the effect of shocks due to the fluctuations of crude oil price can be minimized by shifting the economy from a mono-product nation and diversify the economy to increase productive capacity. Also, the change to civil rule dummy used in the study revealed that the system has not been friendly with the country’s real effective exchange rate, thus needing to review the system and bringing out all negative activities there in to ensure Nigeria’s currency appreciation. Guided openness is also suggested to avert the danger that unguided trade liberalization may bring into the country.

scholarly journals Pengaruh Suku Bunga, Nilai Tukar Rupiah, Inflasi Dan Harga Minyak Dunia Terhadap Ihsg Di Bei

2019 ◽  
Vol 2 (3) ◽  
Author(s):  
Reagan Wijaya Sumitra
Keyword(s):  
Exchange Rates ◽  
Crude Oil ◽  
Interest Rates ◽  
Price Index ◽  
Secondary Data ◽  
Sampling Technique ◽  
Oil Price ◽  
Share Price ◽  
Crude Oil Price ◽  
Negative Effect

This research is to analyze the influence of macroeconomic towards composite share price index in Indonesia. This research is an explanatory research with quantitative paradigm. This research is using secondary data and the sample determined by full sampling technique based on time series date that has been accessed on official website of Bank Indonesia and finance yahoo year 2013 to 2017 which is consist of 60 samples. This research used multiple linier regression analysis. Based on classic assumption test, the datas in this research has been comply the assumption. Based on the multiple linier regression test, exchange rates and crude oil price has positive effect, whereas the inflation and interest rates has negative effect on composite share price index. Based on R2 test, 73,3 %  of composite share price index influenced by interest rates, exchange rates, inflation and crude oil price. Based on F test, macro economic factors simultantly influence composite share price index. Based on t test, interest rates and exchange rates has a significant effect on composite share price index, whereas the inflation and crude oil price did not have significant effect on composite share price index.

scholarly journals A study on economic factors affecting credit ratings of Indian companies

2019 ◽  
Vol 16 (2) ◽  
pp. 326-335
Author(s):  
Rajesh Mamilla ◽  
Mehul Mehta ◽  
Abhijay Shukla ◽  
Piyush Agarwal
Keyword(s):  
Exchange Rates ◽  
Crude Oil ◽  
Industrial Production ◽  
Credit Rating ◽  
Oil Price ◽  
Economic Factors ◽  
Crude Oil Price ◽  
Factors Affecting ◽  
Independent Variables ◽  
The Impact

The objective of the research carried out is to understand the impact of selected economic variables (such as Crude Oil Price, GDP, Industrial Production, Exchange Rates, and Inflation) on credit rating of Indian companies.The sample comprises of 120 rating observations during the period 2012–2016 for a total of 24 companies of India.Measurement of central tendency – descriptive statistics is used where credit rating is used as dependent variable and five economic factors viz. Crude Oil Price, GDP, Industrial Production, Exchange Rates, and Inflation as the independent variables. Results from the analysis indicate that the credit rating responds in both linear, as well as nonlinear manner, to selected economic factors. Economic factors such as GDP, Industrial Production, and Exchange Rates have a linear relationship to credit rating, whereas Crude Oil price and Inflation have a non-linear impact upon the credit rating.

scholarly journals Investigating the Asymmetry Effects of Crude Oil Price on Renewable Energy Consumption in the United States

2021 ◽  
Author(s):  
Pritish Sahu ◽  
Sakiru Adebola Solarin ◽  
Usama Al-mulali ◽  
Ilhan Ozturk
Keyword(s):  
Renewable Energy ◽  
Crude Oil ◽  
Energy Use ◽  
Oil Prices ◽  
The United States ◽  
Oil Price ◽  
Crude Oil Price ◽  
Renewable Energy Consumption ◽  
Long Run ◽  
Short Run

Abstract The reduction in oil prices might make crude oil a cheaper alternative to renewable energy. Given this, the present paper examines the effect of fluctuation of oil prices on the use of renewable energy in the United States during the period 1970–2019. We constructed two nonlinear Autoregressive Distributed Lag (NARDL) models to examine the effect of the positive and negative oil prices shocks on the use of renewable energy in the US. The renewable energy consumption is taken as the dependent variable and GDP, Brent crude prices, population density, trade openness and price index as independent variables. The result revealed that the rise in crude oil price, GDP and population density will increase renewable energy use in the short run and in the long run as well. Moreover, the study finds that any decrease in oil prices will decrease renewable energy use in the short run and its effect will eventually diminish in the long run.

A Short-Run Crude Oil Price Forecast Model with Ratchet Effect

2008 ◽  
Vol 37 (1) ◽  
pp. 37-50 ◽  
Author(s):  
Michael Ye ◽  
John Zyren ◽  
Carol Joyce Blumberg ◽  
Joanne Shore
Keyword(s):  
Crude Oil ◽  
Forecast Model ◽  
Oil Price ◽  
Crude Oil Price ◽  
Ratchet Effect ◽  
Price Forecast ◽  
Short Run

scholarly journals Managing a Country’s Sustainabilty - The Case of Malaysia and Indonesia Public Debt

2019 ◽  
Vol 10 (5) ◽  
pp. 19
Author(s):  
Abdul Razak Abdul Hadi ◽  
Tasya Aspiranti ◽  
Tahir Iqbal ◽  
Raja Rehan
Keyword(s):  
Crude Oil ◽  
Interest Rates ◽  
Oil Price ◽  
Crude Oil Price ◽  
Ardl Model ◽  
Explanatory Variables ◽  
Indonesian Government ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

The study is driven by the motivation to examine the effects of policy interest rates and crude oil prices on Malaysian and Indonesian government borrowing within the framework of Keynesian macroeconomic theory. Using Autoregressive Distributed Lag (ARDL) model as an estimation tool over the observed period from March 2013 till June 2018, the study uncovers the absence of long-term equilibrium relationship between government borrowings and the two explanatory variables. However, based upon Error Correction Representation via ARDL model, there is a significant long-run relation (at 10% level) between Indonesian government borrowing and the two tested variables. Interestingly, this is not the case for Malaysia over both long-run and short-run relations. With respect to the short-run dynamics, there is a unidirectional causality running from crude oil price to Indonesian government borrowing. It seems crude oil price plays a significant role in influencing Indonesian government’s choice of public financing. As expected, the short-term policy rate has no significant bearing on government borrowings at all.

Long-term memory dynamics of crude oil price spread in non-dollar countries under the influence of exchange rates

Energy ◽  
2019 ◽  
Vol 182 ◽  
pp. 753-764 ◽  
Author(s):  
Siyao Liu ◽  
Wei Fang ◽  
Xiangyun Gao ◽  
Feng An ◽  
Meihui Jiang ◽  
...  
Keyword(s):  
Exchange Rates ◽  
Crude Oil ◽  
Oil Price ◽  
Long Term Memory ◽  
Crude Oil Price ◽  
Term Memory ◽  
Price Spread
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