Print ISSN: 2204-1990

Online ISSN: 1323-6903

Keywords : Exchange Rate

The Effect Of The Exchange Rate On Demand For Money In Sudan: The Question Of Asymmetry

Dr Omer Ahmed Sayed

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 1318-1332

In this study, we intended to examine the asymmetric effect of exchange rates on demand for money in Sudan. Applying the Non-linear ARDL model to annual data for the period 1960 to 2019, using inflation, real GDP, and profit margin of Murabaha as control variables. Few studies found that test the non-linearity effect of the exchange rate on money demand in Sudan. This paper tried to fill this gap by testing the impact of the Sudanese Pound exchange rate non-linearity on the money demand in Sudan. The findings show that asymmetric effect of the exchange rate on money demand both the short run as well as long run were found. The policy implication of our results is that assuming a symmetry relationship between the exchange rate and demand for money may affect the economic planning negatively. Thus, non-linear ARDL assumes to be more suitable than the linear ARDL for examining such a relationship.

Pak Rupee As A Currency And Currency War

Sarfraz Hussain; Muhammad Rafiq; Abdul Quddus; Nisar Ahmad; Tien Phat Pham

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 88-95

The purpose of this article is to discuss the daily currency wars around the world. Also, it outlines important currencies. There is a debate about the risk of currency wars and the options to handle them. The impact of the exchange rate on the Pakistani economy is also part of this debate. With less domestic savings, emerging economies such as Pakistan have to go international to get more foreign money. There are always competitors in the foreign exchange market. Fights are now commonplace. Currency wars must be recognized and dealt with properly.

Trading with National Currency: Is the Turkish Lira Stable?

Ayman M. Bakr

Journal of Contemporary Issues in Business and Government, 2021, Volume 27, Issue 1, Pages 3459-3474

The purpose of this paper is to study the stability of using national currencies for trading between Turkey and its partners in order to mitigate the risks of exchange rate volatility. We have employed wavelet coherence technique to data extracted for the Turkish lira against the currencies of its major trade partners: Germany, Russia, China, Italy, and UK. The time series cover the period from March 1996 to October 2019. Our findings show that the Turkish lira exchange rate with the German, Russian, Italian, and UK currency pairs is stable in the long-term. The exchange rate between the Turkish lira and the Chinese yuan needs further studying before a decision can be taken. The findings have important implications for policymakers and traders.

Steps to be followed when home currency is weak


Journal of Contemporary Issues in Business and Government, 2020, Volume 26, Issue 2, Pages 591-597
DOI: 10.47750/cibg.2020.26.02.079

The study of the research paper deals with the money market and the appreciation of home currency value. The exchange rate mainly depends on the value of the home currency and the investments made by the people in the country. Investment plays a major role in currency appreciation. Trading with more than one currency at global level is called as Foreign Exchange. The Forex market deals with the currency exchange at global level. The value of home currency depends on the rate of exchange. The exchanging rate of currency can affect the trading factors of the country. Even the currency value can be determined by the import export of the country. Inflation plays a vital role in the Forex market. The inflation is expected to have a pessimistic impact on the exchange rate, low inflation does not assure favorable exchange during high inflation rate has a negative impact. Investments made by people of the country helps to avoid inflation.