Effects of Financial Policies on Foreign Currencies Exchange Rates in Sudan (1989-2010)

2012 ◽  
Author(s):  
Issam A.W. Mohamed
Keyword(s):  
Exchange Rates ◽  
Financial Policies ◽  
Foreign Currencies

scholarly journals Copula-Based Assessment of Co-Movement and Tail Dependence Structure Among Major Trading Foreign Currencies in Ghana

Risks ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 55
Author(s):  
Prince Osei Mensah ◽  
Anokye M. Adam
Keyword(s):  
Exchange Rates ◽  
Foreign Currency ◽  
Tail Dependence ◽  
Time Range ◽  
Dependence Structure ◽  
Joint Movement ◽  
Positive Dependence ◽  
Study Results ◽  
Foreign Currencies ◽  
Dependence Measures

This paper examines the joint movement and tail dependence structure between the pair of foreign exchange rates (EUR, USD and GBP) against the GHS, using daily exchange rates data expressed in GHS per unit of foreign currencies (EUR, USD and GBP) between the time range of 24 February 2009 and 19 December 2019. We use different sets of both static (time-invariant) and time-varying copulas with different levels of dependence and tail dependence measures, and the study results reveal positive dependence between all exchange rates pairs, though the dependencies for EUR-USD and GBP-USD pairs are not as strong as the EUR-GBP pair. The findings also reveal symmetric tail dependence, and dependence evolves over time. Notwithstanding this, the asymmetric tail dependence copulas provide evidence of upper tail dependence. We compare the copula results to DCC(1,1)-GARCH(1,1) model result and find the copula to be more sensitive to extreme co-movement between the currency pairs. The afore-mentioned findings, therefore, offer forex market players the opportunity to relax in hoarding a particular foreign currency in anticipation of domestic currency depreciation.

scholarly journals Islamic Currency Swap: Can Be The Best Way to Hedge Indonesia Hajj Fund?

2018 ◽  
Vol 6 (2) ◽  
pp. 145
Author(s):  
Irvan Maulana ◽  
Muhammad Rafdi
Keyword(s):  
Saudi Arabia ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Simulation Analysis ◽  
Currency Hedging ◽  
Operational Costs ◽  
Hedging Policy ◽  
Foreign Currencies ◽  
High Volatility ◽  
The Government

The operational costs of Hajj in foreign currencies will always face the risk of changes in exchange rates. Hajj operational costs will continue to grow in line with the increasing number of pilgrims. But at present, the government (BPKH) does not have a currency hedging policy to reduce the risk of fluctuating currency values. Hajj operational costs are saved in rupiah, dollar and riyal currencies. As a result, deposits of pilgrims will continue to be overshadowed by the reduction in value due to the depreciation of the rupiah against the dollar and riyals. Hedging policy is a necessity in the management of Hajj funds. This study will use an Islamic currency swap simulation analysis. According to the MUI DSN No 96 in 2015, a swap is a contract that starts a spot transaction followed by a forward agreement by setting a forward exchange rate. Then it is settled by spot transactions using the agreed forward exchange rate. The results of the study show that the dollar and riyal in 2018 are in a state of high volatility, so hedging is needed to reduce cash outflows. Based on analysis, Islamic currency swap can be the best hedging to the operational costs of Hajj in USD is with tenors 30 days, 180 days, 360 days. while the operational costs of Hajj are in Saudi Arabia Riyal currency, efficient in overnight tenors, 30 days, 90 days and 180 days. 

scholarly journals Indian Financial Sector Reforms: A Corporate Perspective

1998 ◽  
Vol 23 (1) ◽  
pp. 27-38 ◽  
Author(s):  
Jayanth R Varma
Keyword(s):  
Exchange Rates ◽  
Corporate Finance ◽  
Interest Rates ◽  
Financial Liberalization ◽  
Financial Sector ◽  
Financial Policies ◽  
Sector Reform ◽  
Slow Pace ◽  
Financial Sector Reform ◽  
The Government

Until the early 90s⁄ corporate finance managers in India were given very little freedom in the choice of key financial policies as the government regulated the pricing of debt and equity instruments and directed the flow of credit. Financial sector reform over the last six years has exposed managers to complex financial choices amidst increased volatility of interest rates and exchange rates, and made them accountable to an increasingly competitive financial marketplace. Nevertheless, the slow pace of financial liberalization so far has given Indian corporates the luxury of learning slowly and adapting gradually. Gradualism has also meant that there is a large unfinished agenda of financial sector reforms. According to Jayanth Varma⁄ Indian companies should now prepare themselves for further changes that lie ahead. The East Asian crisis is a warning for the Indian corporate sector to pursue more prudent and sustainable financial policies.

An Analysis of Demand for Money in the Lao People’s Democratic Republic

2012 ◽  
pp. 47-62
Author(s):  
Dat Tran Tho ◽  
Hoa Ha Quynh ◽  
Phaysith Somphao
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Foreign Currency ◽  
Democratic Republic ◽  
Lao Pdr ◽  
Lao People’S Democratic Republic ◽  
Demand Functions ◽  
Lao People's Democratic Republic ◽  
Expected Inflation ◽  
Foreign Currencies

This paper is aimed at exploring the dynamic relationship between money bal- ance and four other macroeconomic variables: real GDP, expected inflation, exchange rates, domestic and foreign interest rates by modeling and testing for sta- bility of money demand functions in the Lao People’s Democratic Republic (PDR) during the period of 1993:Q1-2010:Q2. Demands for narrow money, broad money and board money in foreign currencies were estimated. The estimated results sug- gested that all demand functions are stable. They can be intermediate targets of the Bank of the Lao PDR. The substantial results point out: (i) there is an evidence of ample influence of exchange rates and interest rate on money balances in the Lao PDR; (ii) expected inflation indicates the effect of high inflation episodes on money balances, especially in terms of foreign currency, and (iii) the local currency, the Kip, is used predominantly for transaction purposes rather than foreign currencies.

Application of Artificial Neural Network (Ann) in Modeling Foreign Currency Exchange Rates

2018 ◽  
Vol 6 (10) ◽  
Author(s):  
George Kiplagat Kipruto ◽  
Dr. Joseph Kyalo Mung’atu ◽  
Prof. George Otieno Orwa ◽  
Nancy Wairimu Gathimba
Keyword(s):  
Neural Network ◽  
Neural Networks ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Performance Metrics ◽  
Exchange Rate Volatility ◽  
Foreign Currencies ◽  
Exchange Rates Volatility

Investors, Policy makers, Governments etc. are all consumers of exchange rates data and thus exchange rate volatility is of great interest to them. Modeling foreign exchange (FOREX) rates is one of the most challenging research areas in modern time series prediction. Neural Network (NNs) are an alternative powerful data modeling  tool that has ability to capture and represent complex input/output relationships. This study describes application of neural networks in modeling of the Kenyan currency (KES) exchange rates volatility against four foreign currencies namely; USA dollar (USD), European currency (EUR), Great Britain Pound (GBP) and Japanese Yen (JPY) foreign currencies. The general objective of the proposed study is to model the Kenyan exchange rate volatility and confirm applicability of neural network model in the forecasting of foreign exchange rates volatility. In our case the Multilayer Perceptron (MLP) neural networks with back-propagation learning algorithm will be employed. The specific objectives of the study is to build the neural network for the Kenyan exchange rate volatility and examine the properties of the network, finally to forecast the volatility against four other major currencies. The proposed study will use secondary data of the mean daily exchange rates between the major currencies quoted against the Kenyan shilling. The data will be acquired from the central bank of Kenya's (CBK) website collected for ten years of trading period between the years 2005 to 2017. The data will be analyzed using both descriptive and inferential statistics, with the aid of R's neuralnet package. A number of performance metrics will be employed to evaluate the model. Conclusion and recommendations will be made at the end of the study.

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