“Determinants of exchange rate in Ghana”
| dc.contributor.author | Taaju , Abdu Rahim | |
| dc.date.accessioned | 2025-07-16T10:13:11Z | |
| dc.date.available | 2025-07-16T10:13:11Z | |
| dc.date.issued | 2016-05 | |
| dc.description | Thesis submitted to the Department of Economics of the College of Social Sciences and Humanities, Kwame Nkrumah University of Science and Technology, in Partial fulfillment of the requirement for the award of the Master of Science degree in Economics. | |
| dc.description.abstract | ABSTRACT The purpose of this work was to find out the determinants of the Ghana cedi performance against international currencies by using data covering the period 1985- 2014. The Ghana Cedi in recent times has suffered substantial loss of value against the major trading foreign currencies especially the US dollar which the researcher uses as the proxy in this work. The Cedi depreciation is believed to be partly responsible for a rising inflation and interest rate in Ghana and imposes economic challenges to the country. The researcher investigates the macroeconomic variables that influence the cedi exchange rate. Secondary data was employed for analysis and presentation of the issues. The use of Eviews and the Vector Auto-Regressive (VAR) model have been employed in this work. Also used are the Akaike Information Criterion and Final Prediction Error to estimate the VAR due to the sample size of less than 60, the Augmented Dickey- Fuller(ADF) unit root test, Johansen cointegration test, Granger causality as well as variance decomposition. Government borrowing, consumer price index, and domestic interest rate were found as statistically significant, influencing the performance of the Cedi against the US Dollar in the long run. Exports and imports were revealed to have no such effect on exchange rate movements. Policy measures recommended to arrest the situation includes proper and effective coordination between monetary and fiscal authorities to reduce revenue leakages. Creation of good investment climate and development of domestic bond market are also recommended to reduce pressure on the local currency and put it in a stable position. | |
| dc.description.sponsorship | KNUST | |
| dc.identifier.uri | https://ir.knust.edu.gh/handle/123456789/17462 | |
| dc.language.iso | en | |
| dc.publisher | KNUST | |
| dc.title | “Determinants of exchange rate in Ghana” | |
| dc.type | Thesis |