Supply and demand shocks in the global oil market: How much do they matter for exchange rates in OPEC members?

Jungho Baek

Resources Policy, 2023, vol. 81, issue C

Abstract: The current article uses the SVAR and ARDL methodologies to study the dynamic responses of exchange rates for OPEC's 13-member countries to oil supply shocks, aggregate demand shocks, and oil-specific demand shocks. We discover that the timing and the direction of the responses of the OPEC currencies appear to differ with the cause of the oil price shocks. We also reveal that the effects of the three oil shocks could be viewed as a short-run phenomenon for the OPEC currencies.

Keywords: ARDL; Exchange rates; Oil demand shocks; Oil supply shocks; OPEC; SVAR (search for similar items in EconPapers)
JEL-codes: C32 O53 Q43 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000144

DOI: 10.1016/j.resourpol.2023.103306

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