Analysis of oil price, trade openness and business cycle on ex-change rate in Indonesia

View Full Paper

Ask AI

Bookmark

Authors

Discussion

Analysis shows oil prices negatively affect exchange rates in Indonesia, highlighting trade openness' limited role.

Oil prices significantly decrease the rupiah exchange rate over the long term, affecting stability.
The ARDL method reveals that trade openness has no impact on exchange rates in either short or long term.
Business cycle variables show consistent negative influence on exchange rates, indicating economic resilience is key.
Ensuring stability in macroeconomic conditions can help stabilize the exchange rate and boost exports.

Kurniawan et al. (2024) studied this question.

View Full Paper

Ask AI

Bookmark