DETERMINANTS OF REAL EXCHANGE RATE IN SOUTH AFRICAINTRODUCTION There are many examinations in the literature that have experimentally explored the impacts or determinants of exchange rate fluctuation on economic indicators in many countries. South Africa is the southernmost nation in Africa. South Africa neighbor countries are Namibia, Botswana, Zimbabwe, Mozambique, Switzerland and Lesotho In this paper, we identify the fundamental determinants of the long-run exchange rate in South Africa. We then estimate the equilibrium real exchange rate for this country using a dataset covering the period 1975–2012. In order to account for possible short-run fluctuations in the real exchange rate, we conducted a cointegration test using the ARDL bounds testing procedure. First, we found terms of trade, trade openness, government consumption, net foreign assets and real commodity prices to be the long-run determinants of the real exchange rate in South Africa. Second, we found that nearly 68.06% of the real exchange-rate disequilibrium is corrected annually. It begins with a review of literature on the determinants of the real exchange rate and provides an updated background on the exchange rate system in South Africa. An empirical model linking the real exchange rate to its theoretical determinants is then specified.
Oct 24, 2016 Abstract. This study investigates the determinants of real effective exchange rate in Nigeria for the period between 1960 and 2015 using the
Feb 23, 2016 US government bond yield, South African real GDP, the South The South African rand/US dollar (ZAR/USD) exchange rate (units of the rand Sekantsi (2011) conducted a study on “the impact of real exchange rate volatility on trade in the context of South Africa's exports to the US” and found that a the real interest rate, have also been found to be significant determinants of the between energy prices and the real exchange rate in South Africa, mainly The CMA is an asymmetric currency union dominated by South Africa. Namibia's currency, the Namibian Dollar, is pegged to the South African Rand on a one to As Figure 18.6 "South Africa-United States exchange rate, June 2006" shows, the nominal interest rate equals the real interest rate plus inflation expectations.
Feb 23, 2016 US government bond yield, South African real GDP, the South The South African rand/US dollar (ZAR/USD) exchange rate (units of the rand
Feb 23, 2016 The South African rand/US dollar (ZAR/USD) exchange rate (units of the A higher real interest rate differential between South Africa and the Abstract: This paper is an econometric investigation of the determinants of the real value of the South African rand over the period 1984-2006. The results show Feb 23, 2016 US government bond yield, South African real GDP, the South The South African rand/US dollar (ZAR/USD) exchange rate (units of the rand Sekantsi (2011) conducted a study on “the impact of real exchange rate volatility on trade in the context of South Africa's exports to the US” and found that a the real interest rate, have also been found to be significant determinants of the between energy prices and the real exchange rate in South Africa, mainly The CMA is an asymmetric currency union dominated by South Africa. Namibia's currency, the Namibian Dollar, is pegged to the South African Rand on a one to
It begins with a review of literature on the determinants of the real exchange rate and provides an updated background on the exchange rate system in South Africa. An empirical model linking the real exchange rate to its theoretical determinants is then specified.
This is especially true of an index of the real prices of South African mineral commodities, which even drives out real income as a significant determinant of the log real exchange rate of the domestic currency per United States dollar, table. 2 shows the volatility of the ZAR compared to selected emerging markets.
Oct 24, 2016 Abstract. This study investigates the determinants of real effective exchange rate in Nigeria for the period between 1960 and 2015 using the
determinants such as differential interest rates (DINTR), differential gross domestic Aguire and Calderon (2007) found that real exchange rate correlates Ricci, L. (2003) Estimation of the Equilibrium Real Exchange Rate for South Africa. Analyzing a large cross country data set, and controlling for other standard investment determinants, Serven [2003] finds a strong negative effect of real exchange Oct 24, 2016 Abstract. This study investigates the determinants of real effective exchange rate in Nigeria for the period between 1960 and 2015 using the determinants of the real exchange rate are somewhat different in the perfect most pronounced in Sub-Saharan Africa, South Asia and especially Europe and Sep 11, 2002 Determinants of the rand exchange rate. 5 Real effective exchange rate South African consumers, corporates, foreign exchange dealers,.