Oil prices and GCC exchange rates

Rasasi, Moayad Al

doi:10.1080/15567249.2015.1132284

Cited by 13 publications

(6 citation statements)

References 25 publications

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“…They found that decreasing OP deteriorated exports and external surplus as well. Al Rasasi (2017) investigated the OP and exchange rate relationship in GCC region. They found that rising OP helped to appreciate the GCC currencies.…”

Section: Literature Reviewmentioning

confidence: 99%

Oil Price and Capital Formation Nexus in GCC Countries: Asymmetry Analyses

Alkhateeb

Mahmood

2020

IJEEP

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Oil price (OP) may support the oil dependent economies in term of macroeconomic performance. We investigate the asymmetrical effect of OP on capital formation of gulf cooperation council (GCC) countries. We found long and short relationship in all GCC models. Increasing OP has positive effect on capital formation of all GCC countries except Oman and Qatar in long run. Decreasing OP has positive effect on capital formation in UAE, Saudi Arabia and Bahrain. Increasing OP has positive effect on capital formation of Bahrain and UAE and carries negative impact in Kuwait and Qatar in short run. Decreasing OP positively affects the capital formation of Bahrain and Saudi Arabia and has negative effect in Kuwait, Oman and UAE. Moreover, asymmetrical effect of OP on capital formation is verified in GCC countries except UAE in long run and in all GCC countries except Bahrain and Kuwait in short run.

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Section: Literature Reviewmentioning

confidence: 99%

Oil Price and Capital Formation Nexus in GCC Countries: Asymmetry Analyses

Alkhateeb

Mahmood

2020

IJEEP

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“…In the GCC region, Metwally [33] probed a relationship between oil price downturns and external surplus and found that the fall in oil exports significantly decreased the external surpluses. Al Rasasi [42] tested a nonlinear relationship between oil prices and real exchange rates and found that oil prices appreciated the local currency. Metwally and Perera [29] explored the impact of decreasing oil prices on government spending.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Metwally [33] GCC countries A positive relationship was found between oil exports and external surpluses. Al Rasasi [42] GCC countries Increasing oil prices resulted in appreciation.…”

Section: Ahad and Anwer [14]mentioning

confidence: 99%

The Oil Price and Trade Nexus in the Gulf Co-Operation Council Countries

Alkhateeb

Mahmood

2020

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The present study investigates the asymmetrical impacts of oil prices and real exchange rates on the trade balances in the Gulf Co-operation Council countries. Using panel estimates, we found the symmetrical positive effect from the oil prices and the asymmetrical positive effect from the real exchange rates on the trade balances. For country-specific results, increasing oil prices showed a positive effect on the trade balances in Oman, Saudi Arabia, and the UAE and a negative effect in Kuwait. Decreasing oil prices carried a positive relationship with the trade balances in Bahrain, Oman, Qatar, and the UAE. The oil prices showed an asymmetrical impact on the trade balances in all countries, except Saudi Arabia. Moreover, the depreciation helped to improve the trade balances in Bahrain, Oman, Qatar, and the UAE. The appreciation worsened the trade balances in Oman, the UAE, and Saudi Arabia and improved the trade balance in Kuwait. Moreover, the asymmetrical relationships between the real exchange rates and the trade balances were corroborated in all of the investigated countries.

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“…They find evidence supporting the validity of the Dutch disease for only three countries; i.e., the US dollar tended to depreciate relative to the Bolivian boliviano, Mexican peso, and Norwegian krone. To this end, there are other studies (Huang and Guo, 2007;Thalassinos and Politis, 2012;Uddin et al, 2014;Al Rasasi & Yilmaz, 2016;Al Rasasi, 2015, 2017, 2018 documenting the essential role of oil prices in capturing the behavior of exchange rates.…”

Section: Literature Reviewmentioning

confidence: 99%

Oil Prices and the U.S. Dollar Exchange Rate: Evidence from the Monetary Model

Rasasi¹

2018

RAE

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This paper analyzes how changes in global oil prices affect the US dollar (USD) exchange rate based on the monetary model of exchange rate. We find evidence indicating a negative relationship between oil prices and the USD exchange rate against 12 currencies. Specifically, the analysis of the impulse response function shows that the depreciation rate of the USD exchange rate ranges between 0.002 and 0.018 percentage points as a result of a one-standard deviation positive shock to the real price of crude oil. In the same vein, the forecast error variance decomposition analysis reveals that variation in the USD exchange rate is largely attributable to changes in the price of oil rather than monetary fundamentals. In last, the out-of-sample forecast exercise indicates that oil prices enhance the predictability power of the monetary model of exchange rate.

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Oil prices and GCC exchange rates

Cited by 13 publications

References 25 publications

Oil Price and Capital Formation Nexus in GCC Countries: Asymmetry Analyses

Oil Price and Capital Formation Nexus in GCC Countries: Asymmetry Analyses

The Oil Price and Trade Nexus in the Gulf Co-Operation Council Countries

Oil Prices and the U.S. Dollar Exchange Rate: Evidence from the Monetary Model

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