Independence of Central Bank of Egypt and Exchange Rate Regimes

Mustafa Kasim and Khaled Hussainey ()

Chapter 9 in Handbook of Banking and Finance in the MENA Region, 2024, pp 215-244 from World Scientific Publishing Co. Pte. Ltd.

Abstract: In this chapter, we assess macroeconomic independence using the prices of goods and services and short-term interest rates throughout a range of time periods categorized by alternative exchange rate regimes. To assess how well-floating exchange rates have increased Egypt’s macroeconomic independence from the European Union (EU) and the United States (US), the ARDL model (autoregressive distributed lag) or Bounds Test has been devised. We examine a number of hypotheses concerning global transmission, interest rate and price movement, and international trade using this empirical methodology. According to the findings, Egypt’s products market and monetary policy are, over the long term, completely independent from those of base regions like the European Union and the United States. Because of this, the Central Bank of Egypt (CBE) may decide its plan of action (policy direction) and define its goals without being impacted by shocks from the EU and the US.

Keywords: MENA; Banking Sector; Business Risk; Corporate Governance; COVID-19; Cryptocurrency; Fintech; Financial Stability; Green Finance (search for similar items in EconPapers)
JEL-codes: F3 G2 G3 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9781800614734_0009 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9781800614734_0009 (text/html)
Ebook Access is available upon purchase.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9781800614734_0009

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().