Examining Predictors of Currency Strength in Developing and Transition Economies

Anna Myslytska, Anton Kruk and Yaroslav Khomych

MPRA Paper from University Library of Munich, Germany

Abstract: In the globalized world, the strength of a country's currency is paramount, especially for developing and transition economies. This research endeavors to identify the key predictors for currency strength in such countries, with a spotlight on Ukraine, particularly in the aftermath of Russia's invasion. Leveraging cross-country regression analysis, the study examines the factors influencing exchange rates. The findings highlight the role of economic prosperity, import dynamics, and government spending as vital determinants of currency strength, while interest rates, exports, and inflation were found to have less significance. For policymakers, this implies a need to bolster economic growth, manage imports, and ensure prudent fiscal policies. This study not only augments the academic discourse on international finance but also offers actionable insights for economies like Ukraine striving for currency stability.

Keywords: Exchange Rates; Developing Countries; Transition Economies (search for similar items in EconPapers)
JEL-codes: E00 E6 F4 (search for similar items in EconPapers)
Date: 2023-07-10
New Economics Papers: this item is included in nep-cis, nep-mon and nep-tra
References: Add references at CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/118660/1/MPRA_paper_118660.pdf original version (application/pdf)

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:pra:mprapa:118660

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().