Determinants of Exchange Rates in Pakistan Finance Essay
This study investigates the determinants of exchange rate in Pakistan using time series data. This study examines the determinants of exchange rate in Pakistan using time series data Summary. The objective of the study is to check the effect of the determinants of exchange rate on the context of Pakistan for the years 1991-2019. The data source is: The long-run estimates indicate a significant negative relationship between exchange rates and terms of trade, trade openness and economic growth. However, the present study has contributed to the literature in five distinctive ways by analyzing the dynamics and key determinants of the exchange rate in Pakistan. First, we examine the impact of an exchange rate devaluation on Pakistan's trade balance, using data - a simultaneous four-equation model. Empirical results confirm that money supply, debt and foreign exchange reserve balance are all significant determinants of the Pakistan Rupee-US exchange rate in relative terms. The determinants of exchange rate volatility and determining the factors that influence exchange rate volatility in Turkey over a period of time. Methodology- In this study the. Tang et al. found that GDP, real exchange rate, financial development, corporate tax, macroeconomic uncertainty and social uncertainty. examined both economic and social determinants of foreign direct investment in Pakistan for the The results indicated that the coefficient of market size, openness and inflation. Product, exchange rate and unemployment rate on inflation rate in Pakistani economy. The study used time series data from the period. The exchange rate is the rate at which one currency trades against another in the foreign exchange market. If the current exchange rate is 1 to 1.42, that means if you go to America you will get 100. In the same way, if an American came to Britain, he would have to pay, get 100. Although in real life the dealer has a profit-oriented approach. Design methodology. A sample bank has been selected from Karachi stock exchange for the period -2011. Arch-Garch and unit root cannot be applied to check stationarity and volatility due to small sample size. This study investigates the main determinants of the RER exchange rate misalignment for the period -2011. Pakistan's financial account is not yet complete. liberalized.