Preview

Determinants of Exchange Rate in Mogadishu

Powerful Essays
Open Document
Open Document
3771 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Determinants of Exchange Rate in Mogadishu
Exchange Rate Determinants in Mogadishu in 2011

Ibrahim Mohamed Ibrahim
SIMAD University ibrahimkhaliil@yahoo.com Abstract

The purpose of this study was to examine the determinants of the exchange rate this study was set to analyze the Exchange Rate determinates in Somalia in due to 2011. There are two factors that are assumed to have strong relations with exchange. Descriptive and regression analysis was used to draw up the satisfactory conclusion. SOS-1 and SOS-2 were determinants of exchange rate. The findings of this study showing that Somalia exchange rate is strongly affected by the above mentioned factor. This can observed from R squared that indicates 96% of the variation in exchange rate is explained by variation in independent variables. Speculators should eye on these factors to minimize the exchange fluctuation.
Key words: exchange rate, SOS-1, SOS-2
------------------------------------------------------------------------------------------------------------

1: INTRODUCTION
1.1 Introduction to the variables
The exchange rates of the world are so different according to nation’s currency and the ways exchange rate works or operates are different from other exchange rate markets depend on more factors like spot rates. Exchange rate plays a crucial role in exchange rate markets and all brokers or speculators needs to know how the daily exchange rates are operating in market rate. In this will have the following section? A section on the independent variables of this study will be presented. 1.1.1 SOS-1
Somali shilling-1 means yesterday and it has an effect for the day before every day exchange rate and Somali shilling cope with different currencies such as USD (US dollar), pound, riyal, Kenya shilling and also Ethiopian currency if the Somali shilling of today is $1= SOS 22, it may was yesterday went up or down. 1.1.2 SOS-2
Somali shilling-2 means the day before yesterday and deal with different world currencies

You May Also Find These Documents Helpful

  • Better Essays

    Eco 372 Team Paper

    • 1490 Words
    • 6 Pages

    Moffatt, M. (n.d.). A beginner 's guide to exchange rates and the foreign exchange market.…

    • 1490 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    In the dynamic global market, companies of all sizes, whether small, medium or transnationals interact with foreign companies and in most cases operate with currencies that are different from those that they commonly use. Foreign companies use foreign currencies for their expenditures, hedging strategies, and investing and financing activities. As a result these business activities must be reflected on the financial statements in the corporation’s reporting currency. FASB 52 and IAS 21 provide the appropriate guidance on the consideration of which functional currency should be implemented by the foreign subsidiaries. This case focuses in Sparkle a Nigerian subsidiary of a joint venture formed by U.S. – based companies with US functional currency; This Company is assessing several factors that will be discussed in the following paragraphs to determine its functional currency.…

    • 1571 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Fins1612 Notes

    • 17846 Words
    • 72 Pages

    Page 3: Introduction to the Financial System Page 7: Commercial Banks Page 12: The Share Market and the Corporation Page 15: Corporations Issuing Equity into the Share Market Page 19: Investors in the Share Market Page 24: Short-term Debt Page 28: Medium- to Long-term Debt Page 32: Interest Rate Determination and Forecasting Page 37: The Foreign Exchange Market Page 40: Factors that Influence the Exchange Rate Page 42: Futures Contracts and Forward Rate Agreements Page 47: Options…

    • 17846 Words
    • 72 Pages
    Powerful Essays
  • Good Essays

    Exchange rates are determined by : Changes in a Country’s Income, Changes in a Country’s Prices, Changes in Interest Rates, and Changes in Trade Policy.…

    • 411 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Intro to Business

    • 576 Words
    • 2 Pages

    1) First, describe in your own words the significance and differences in foreign currency exchange rates.…

    • 576 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In our paper, we will choose Indian Rupee (INR) as a foreign currency of our choice of discussion. According to the requirement of the topic, first of all, we will try to project the trend of movement of Indian Rupee against US Dollar (US$) for the time period of 2005 – 2010 in figure: 1 below:…

    • 878 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Both ideas are vital to understanding the foreign exchange (FX) market’s future evolution, as we shall endeavor to show, :-…

    • 4423 Words
    • 18 Pages
    Powerful Essays
  • Better Essays

    I, Mustafa Mohamed Ibrahim does hereby declare that “the impact of inflation on the living standard in Somaliland household consumption,…

    • 12431 Words
    • 50 Pages
    Better Essays
  • Best Essays

    international syllabus

    • 1198 Words
    • 6 Pages

    (I) Exchange Rate and International Financial Economics, by John N. Kallianiotis, Palgrave MacMillan, N.Y., 2013…

    • 1198 Words
    • 6 Pages
    Best Essays
  • Powerful Essays

    regtt

    • 1134 Words
    • 5 Pages

    This test covers the functions of financial institutions and markets in the allocation of funds…

    • 1134 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    In Pakistan floating exchange rate is used for the international transactions. In it, the government does not actively intervene in the currency markets to achieve a desired exchange rate level. In a country where floating exchange rate is followed the exchange rate market is determined by the demand and supply for a particular currency relative to the other currency. Therefore there are fluctuations on the exchange rate and it moves freely according to the demand and supply of that particular currency. Refer figure 3.…

    • 2009 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Like any price, the exchange rate deviates from the cost basis - the purchasing power of currencies – under the influence of supply and demand of currency. The ratio of the supply and demand depends on several factors. It reflects connections with other economic categories - cost, price, money, interest, balance of payments, etc. There is a complex of interweaving and nomination of decisive factors. Among them are the following.…

    • 1186 Words
    • 4 Pages
    Good Essays
  • Good Essays

    This project attempt to study the intricacies of the foreign exchange market. The main purpose of this study is to get a better idea and the comprehensive details of foreign exchange risk management.…

    • 1409 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    With the demise of the foreign currency exchange rates during the 1970’s and after the collapse of the Bretton Woods Agreement, the world economy has undergone drastic changes. This has signaled an increase in currency market volatility and trading opportunity. The foreign exchange market has played a vital role in the last decade or so in guiding the purchase and sale of goods, services and raw materials globally. The market directly affects each country’s bond, equities, private property, manufacturing and all assets that are available to foreign investors. The Bangladesh Taka, which is the domestic currency of Bangladesh and the country’s foreign exchange, had been strictly regulated until the early 1990s. At that time, Bangladesh Bank used to regulate the local currency’s parity against the international currencies. The cross border movement of currencies was also regulated. Bangladesh Bank used to publish a daily foreign exchange rate sheet that had two sets of rates; one being the rates for commercial banks to transact with their customers and the other being rates for the commercial banks to transact with Bangladesh Bank.…

    • 4568 Words
    • 19 Pages
    Powerful Essays
  • Satisfactory Essays

    EF5043

    • 671 Words
    • 6 Pages

    The objective of this course is to enable you to understand and apply the tools and…

    • 671 Words
    • 6 Pages
    Satisfactory Essays

Related Topics