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Monetary policy and exchange rates in different economic contexts: Case study of South Africa
The aim of this study is to examine the relationship between the interest rate and money supply with the exchange rate in South Africa in three periods:- before the global financial crisis (GFC) (Jan 2002 – Jan 2007), during the GFC (Jan 2008 – Dec 2009) and after the GFC (Jan 2010 – Jan 2016). No c...
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| Format: | Thesis |
| Language: | English |
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Department of Finance and Tax
2023
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| _version_ | 1867613343214206976 |
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| access_status_str | Open Access |
| author | Choga, Simba |
| author2 | Chamisa, Edward |
| author_browse | Chamisa, Edward Choga, Simba |
| author_facet | Chamisa, Edward Choga, Simba |
| author_sort | Choga, Simba |
| collection | Thesis |
| description | The aim of this study is to examine the relationship between the interest rate and money supply with the exchange rate in South Africa in three periods:- before the global financial crisis (GFC) (Jan 2002 – Jan 2007), during the GFC (Jan 2008 – Dec 2009) and after the GFC (Jan 2010 – Jan 2016). No clear direction on the relationship between the monetary policy and the exchange rate has been ascertained in developing and developed economies. The Autoregressive-Distributed Lag (ARDL) model is utilized to find the objective of this study. Not much research has taken place involving the relationship of the interest rates, money supply with the exchange rate in the context of South Africa. To my knowledge this is the first study that incorporates the ARDL model to try and ascertain the type of relationship these variables have in South Africa. Therefore, new insights are yielded in the academic arena from this research's results. The results show that there is no significant relationship between the money supply and the exchange rate both in the short and long run in all three economic contexts. A significant effect is found from the interest rate on the exchange rate in the short run during and after the GFC. However, no relationship is found before the GFC between the interest rate and exchange rate. In addition, no relationship is found in the long run between the variables in all three economic contexts. The results suggest that the South African Reserve Bank SARB had a huge influence on the exchange rate during and after the GFC through changing the repo rate. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/37125 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:34:38.153Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/37125 Monetary policy and exchange rates in different economic contexts: Case study of South Africa Choga, Simba Chamisa, Edward Exchange rate ARDL model interest rate money supply The aim of this study is to examine the relationship between the interest rate and money supply with the exchange rate in South Africa in three periods:- before the global financial crisis (GFC) (Jan 2002 – Jan 2007), during the GFC (Jan 2008 – Dec 2009) and after the GFC (Jan 2010 – Jan 2016). No clear direction on the relationship between the monetary policy and the exchange rate has been ascertained in developing and developed economies. The Autoregressive-Distributed Lag (ARDL) model is utilized to find the objective of this study. Not much research has taken place involving the relationship of the interest rates, money supply with the exchange rate in the context of South Africa. To my knowledge this is the first study that incorporates the ARDL model to try and ascertain the type of relationship these variables have in South Africa. Therefore, new insights are yielded in the academic arena from this research's results. The results show that there is no significant relationship between the money supply and the exchange rate both in the short and long run in all three economic contexts. A significant effect is found from the interest rate on the exchange rate in the short run during and after the GFC. However, no relationship is found before the GFC between the interest rate and exchange rate. In addition, no relationship is found in the long run between the variables in all three economic contexts. The results suggest that the South African Reserve Bank SARB had a huge influence on the exchange rate during and after the GFC through changing the repo rate. 2023-03-02T09:14:16Z 2023-03-02T09:14:16Z 2022 2023-02-20T12:25:01Z Master Thesis Masters MCom http://hdl.handle.net/11427/37125 eng application/pdf Department of Finance and Tax Faculty of Commerce |
| spellingShingle | Exchange rate ARDL model interest rate money supply Choga, Simba Monetary policy and exchange rates in different economic contexts: Case study of South Africa |
| thesis_degree_str | Master's |
| title | Monetary policy and exchange rates in different economic contexts: Case study of South Africa |
| title_full | Monetary policy and exchange rates in different economic contexts: Case study of South Africa |
| title_fullStr | Monetary policy and exchange rates in different economic contexts: Case study of South Africa |
| title_full_unstemmed | Monetary policy and exchange rates in different economic contexts: Case study of South Africa |
| title_short | Monetary policy and exchange rates in different economic contexts: Case study of South Africa |
| title_sort | monetary policy and exchange rates in different economic contexts case study of south africa |
| topic | Exchange rate ARDL model interest rate money supply |
| url | http://hdl.handle.net/11427/37125 |
| work_keys_str_mv | AT chogasimba monetarypolicyandexchangeratesindifferenteconomiccontextscasestudyofsouthafrica |