Analysis of the determinants of exchange rate volatility in the SACU region

dc.contributor.authorNyandoro, Winnie Vina
dc.date.accessioned2022-01-24T13:46:29Z
dc.date.available2022-01-24T13:46:29Z
dc.date.issued2020
dc.descriptionA thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science in Economicsen_US
dc.description.abstractThe currencies of the five SACU countries have experienced notable volatility in the last decade. The purpose of this study therefore, was to identify the determinants of exchange rate volatility in the SACU region and also to determine ifthere is a long run relationship between exchange rate volatility and its determinants. The study used annual time series data from 1980 to 2017. This study uses the generalised autoregressive conditional heteroscedasticity GARCH (1 , I) approach. The results from the study revealed that interest rates and inflation were both significant factors in explaining exchange rate volatility in Lesotho. Interest rates were also found to be a determinant of exchange rate volatility in Namibia. For South Africa, Swazi land and Botswana, inflation and interest rates were not significant in explaining exchange rate volatility. Policy makers in the region should therefore start considering the possibility of macro-economic policy independence going forward . In Lesotho, targeted inflation may go a long way in reducing exchange rate volatility. In Namibia and Lesotho, there is also room to explore the possibility of changing the interest rates time and again with the aim of reducing exchange rate volatility.en_US
dc.identifier.urihttp://hdl.handle.net/11070/3103
dc.language.isoenen_US
dc.publisherUniversity of Namibiaen_US
dc.subjectExchange rate volatilityen_US
dc.titleAnalysis of the determinants of exchange rate volatility in the SACU regionen_US
dc.typeThesisen_US
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