Macroeconomic Fundamentals and the Exchange Rate Volatility

Empirical Evidence From Somalia

Bibliographic Data

ID3220083
AuthorsMohamed Ibrahim Nor (0000-0002-3695-9657, SIMAD University, corresponding author), Tajul Ariffin Masron (0000-0002-8564-2402, Universiti Sains Malaysia), Tariq Tawfeeq Yousif Alabdullah (0000-0003-1494-6983, University of Basrah)
Year2020
Volume10
Issue1
Publication date2020-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/2158244019898841
OpenAlexW3000166238
LanguageEN
Citations received2
References cited41

The purpose of this research is to investigate the effect of macroeconomic factors on the volatility of Somalia's unregulated exchange rates. While utilizing the EGARCH (exponential generalized autoregressive conditional heteroskedastic) model, this study found that the unregulated exchange rate volatility of Somalia is influenced by its own shocks and the macroeconomic factors. This study implies that although Somali shilling circulated without regulatory authority for the period of the statelessness, this circulation has been accompanied by volatile exchange rates. This phenomenon makes this study an appealing work that should be pursued further. Hence, this study contributes notably to the process of reforming the exchange rate system and the monetary policy of the post-conflict economy of Somalia. In addition, the results of this study imply that even in times of war and lawlessness the laws of economics do not change completely

Economics · Exchange rate · Financial economics · Lawlessness · Macroeconomics · Monetary economics · Somali · Global Financial Crisis and Policies · Law · Market Dynamics and Volatility · Monetary Policy and Economic Impact

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Open DOISci-HubOpen Access