Factors affecting the real exchange rate of Malaysia Ringgit / Mohamad Luqman Zulkifli

• Main Author: Zulkifli, Mohamad Luqman
• Format: Thesis
• Language: English
• Published: 2022
• Subjects: Malaysia
• Online Access: https://ir.uitm.edu.my/id/eprint/96283/1/96283.pdf; https://ir.uitm.edu.my/id/eprint/96283/

Using quarterly data from 2009 to 2020, the goal of this study is to look at the influence of independent variables on the actual exchange rate of the Ringgit Malaysia. The independent variables (current account balance, trade openness, and crude palm oil price) are regressed on the real exchange rate of Ringgit Malaysia (USD/MYR) using a multiple linear regression model with E-Views. Thomson Reuter's Eikon DataStream, Refinitiv DataStream, and Bloomberg provided the data for this study, which was subsequently analysed using multiple linear regression. Furthermore, econometric tests were run to see how factors related to the real exchange rate of the Malaysian Ringgit, or USD/MYR. To acquire tests such as descriptive analysis, correlation analysis, regression analysis, heteroskedasticity testing, and normality tests, the tests were done using an interactive programme known as E-views 12th student version. Onto the tests, because the probability is less than the 5% significance level, the regression analysis on the T-test indicated that only Current Account Balance (CAB) has a meaningful link with the real exchange rate of USD/MYR. Other factors, such as Trade Openness (TOP) and Crude Palm Oil Price (CPO), however, have a P-value larger than 5% significance level, suggesting that they are not significant.