Rebound Effects of Exchange Rate and Central Bank Interventions in Selected ECOWAS Countries
This study examines the exchange rate rebound effects of the Central Bank intervention in the selected ECOWAS economies. An empirical understanding of these effects is very important to trade adjustment as well as the macroeconomic stability in these countries. Using the panel data modelling framew...
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| Format: | Article |
| Language: | English |
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EconJournals
2017-06-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/4522 |
| _version_ | 1797920873642983424 |
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| author | Mustapha A. Akinkunmi |
| author_facet | Mustapha A. Akinkunmi |
| author_sort | Mustapha A. Akinkunmi |
| collection | DOAJ |
| description |
This study examines the exchange rate rebound effects of the Central Bank intervention in the selected ECOWAS economies. An empirical understanding of these effects is very important to trade adjustment as well as the macroeconomic stability in these countries. Using the panel data modelling framework, the study finds that the impact of the Central Bank intervention on exchange rate is insignificant and it does not lead to the exchange rate rebound effect. In addition, monetary policy rate implemented by the monetary authorities significantly influences the level of exchange rate in a positive direction.
Keywords: Rebound effect; intervention; monetary policy rate
JEL Classifications: E58, F31, G28
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| first_indexed | 2024-04-10T14:09:00Z |
| format | Article |
| id | doaj.art-a5f57eaaddbe40a89245d8495b0d44d2 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:09:00Z |
| publishDate | 2017-06-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-a5f57eaaddbe40a89245d8495b0d44d22023-02-15T16:09:52ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-06-0173Rebound Effects of Exchange Rate and Central Bank Interventions in Selected ECOWAS CountriesMustapha A. Akinkunmi This study examines the exchange rate rebound effects of the Central Bank intervention in the selected ECOWAS economies. An empirical understanding of these effects is very important to trade adjustment as well as the macroeconomic stability in these countries. Using the panel data modelling framework, the study finds that the impact of the Central Bank intervention on exchange rate is insignificant and it does not lead to the exchange rate rebound effect. In addition, monetary policy rate implemented by the monetary authorities significantly influences the level of exchange rate in a positive direction. Keywords: Rebound effect; intervention; monetary policy rate JEL Classifications: E58, F31, G28 https://www.econjournals.com/index.php/ijefi/article/view/4522 |
| spellingShingle | Mustapha A. Akinkunmi Rebound Effects of Exchange Rate and Central Bank Interventions in Selected ECOWAS Countries International Journal of Economics and Financial Issues |
| title | Rebound Effects of Exchange Rate and Central Bank Interventions in Selected ECOWAS Countries |
| title_full | Rebound Effects of Exchange Rate and Central Bank Interventions in Selected ECOWAS Countries |
| title_fullStr | Rebound Effects of Exchange Rate and Central Bank Interventions in Selected ECOWAS Countries |
| title_full_unstemmed | Rebound Effects of Exchange Rate and Central Bank Interventions in Selected ECOWAS Countries |
| title_short | Rebound Effects of Exchange Rate and Central Bank Interventions in Selected ECOWAS Countries |
| title_sort | rebound effects of exchange rate and central bank interventions in selected ecowas countries |
| url | https://www.econjournals.com/index.php/ijefi/article/view/4522 |
| work_keys_str_mv | AT mustaphaaakinkunmi reboundeffectsofexchangerateandcentralbankinterventionsinselectedecowascountries |