A Roadmap to a Successful Exchange Rate Regime Transition: Takeaways from 6 African Transitions
This article investigates the role of monetary policies in the success of exchange rate regime transition and the mitigation of related risks. We adopted a comparative methodology for three types of regime switches using 3 GARCH family models and data from 6 African countries over two decades. Our...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Vilnius University Press
2023-12-01
|
| Series: | Organizations and Markets in Emerging Economies |
| Subjects: | |
| Online Access: | https://www.journals.vu.lt/omee/article/view/25155 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832593112817467392 |
|---|---|
| author | Hamza Bouhali Ahmed Dahbani Brahim Dinar |
| author_facet | Hamza Bouhali Ahmed Dahbani Brahim Dinar |
| author_sort | Hamza Bouhali |
| collection | DOAJ |
| description |
This article investigates the role of monetary policies in the success of exchange rate regime transition and the mitigation of related risks. We adopted a comparative methodology for three types of regime switches using 3 GARCH family models and data from 6 African countries over two decades. Our main findings are that a gradual and well-prepared transition improves its outcome and allows the market more flexibility in absorbing domestic and external volatilities, even during a crisis. The results of this study will provide policymakers with a road map to succeed in the exchange rate regime transition and mitigate the inherent risks.
|
| format | Article |
| id | doaj-art-81f1c54dff64409cb7817c4800fe14ed |
| institution | Kabale University |
| issn | 2029-4581 2345-0037 |
| language | English |
| publishDate | 2023-12-01 |
| publisher | Vilnius University Press |
| record_format | Article |
| series | Organizations and Markets in Emerging Economies |
| spelling | doaj-art-81f1c54dff64409cb7817c4800fe14ed2025-01-20T18:21:46ZengVilnius University PressOrganizations and Markets in Emerging Economies2029-45812345-00372023-12-0114310.15388/omee.2023.14.7A Roadmap to a Successful Exchange Rate Regime Transition: Takeaways from 6 African TransitionsHamza Bouhali0https://orcid.org/0000-0003-4846-2979Ahmed Dahbani1https://orcid.org/0000-0003-3257-0609Brahim Dinar2Mohammed V University, MoroccoHassan II University, MoroccoHassan II University, Morocco This article investigates the role of monetary policies in the success of exchange rate regime transition and the mitigation of related risks. We adopted a comparative methodology for three types of regime switches using 3 GARCH family models and data from 6 African countries over two decades. Our main findings are that a gradual and well-prepared transition improves its outcome and allows the market more flexibility in absorbing domestic and external volatilities, even during a crisis. The results of this study will provide policymakers with a road map to succeed in the exchange rate regime transition and mitigate the inherent risks. https://www.journals.vu.lt/omee/article/view/25155Exchange RateMonetary PolicyCOVID19GARCH |
| spellingShingle | Hamza Bouhali Ahmed Dahbani Brahim Dinar A Roadmap to a Successful Exchange Rate Regime Transition: Takeaways from 6 African Transitions Organizations and Markets in Emerging Economies Exchange Rate Monetary Policy COVID19 GARCH |
| title | A Roadmap to a Successful Exchange Rate Regime Transition: Takeaways from 6 African Transitions |
| title_full | A Roadmap to a Successful Exchange Rate Regime Transition: Takeaways from 6 African Transitions |
| title_fullStr | A Roadmap to a Successful Exchange Rate Regime Transition: Takeaways from 6 African Transitions |
| title_full_unstemmed | A Roadmap to a Successful Exchange Rate Regime Transition: Takeaways from 6 African Transitions |
| title_short | A Roadmap to a Successful Exchange Rate Regime Transition: Takeaways from 6 African Transitions |
| title_sort | roadmap to a successful exchange rate regime transition takeaways from 6 african transitions |
| topic | Exchange Rate Monetary Policy COVID19 GARCH |
| url | https://www.journals.vu.lt/omee/article/view/25155 |
| work_keys_str_mv | AT hamzabouhali aroadmaptoasuccessfulexchangerateregimetransitiontakeawaysfrom6africantransitions AT ahmeddahbani aroadmaptoasuccessfulexchangerateregimetransitiontakeawaysfrom6africantransitions AT brahimdinar aroadmaptoasuccessfulexchangerateregimetransitiontakeawaysfrom6africantransitions AT hamzabouhali roadmaptoasuccessfulexchangerateregimetransitiontakeawaysfrom6africantransitions AT ahmeddahbani roadmaptoasuccessfulexchangerateregimetransitiontakeawaysfrom6africantransitions AT brahimdinar roadmaptoasuccessfulexchangerateregimetransitiontakeawaysfrom6africantransitions |