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Oil price movements and exchange rate: evidence from selected net oil exporting countries in Africa

This dissertation investigates the long and the short run relationships as well as the causal relationship between oil price movements and exchange rates. The study uses daily data for a 12-year period commencing in January 2007 and December 2018, focuses on four net oil exporting African countries,...

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Main Author: Mdluli, Thobeka
Other Authors: Alhassan, Abdul Latif
Format: Thesis
Language:English
Published: Graduate School of Business (GSB) 2022
Subjects:
Africa
oil price movements
oil price exchange rate
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access_status_str Open Access
author Mdluli, Thobeka
author2 Alhassan, Abdul Latif
author_browse Alhassan, Abdul Latif
Mdluli, Thobeka
author_facet Alhassan, Abdul Latif
Mdluli, Thobeka
author_sort Mdluli, Thobeka
collection Thesis
description This dissertation investigates the long and the short run relationships as well as the causal relationship between oil price movements and exchange rates. The study uses daily data for a 12-year period commencing in January 2007 and December 2018, focuses on four net oil exporting African countries, namely, Nigeria, Angola, Algeria and Egypt. The data was analysed using the time series techniques covering unit root, cointegration and causality analyses. The results of the study found that in the long run, oil prices movements are observed to be negatively related to the returns on the Nigerian Naira, Egyptian Pounds and Algerian Dinar indicating that an oil price increases result in the depreciation of the exchange rates for each of the aforementioned countries. In the short run, oil prices movements are observed to be positively related to the returns on Nigerian Naira, Egyptian Pounds and Algerian Dinar indicating that oil price increase results in the appreciation of the exchange rates. The causality results show evidence of bidirectional causality for the Nigerian Naira and the Angolan Dinar, unidirectional causality for the Egyptian pound and lastly no evidence of causality was found for the Angolan Kwanza. This dissertation suggests the policymakers to stabilize the effects of oil price movements through expansionary monetary policy, to shield African economies from sudden economic depression.
format Thesis
id oai:open.uct.ac.za:11427/36409
institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:32:05.102Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2022
publishDateRange 2022
publishDateSort 2022
publisher Graduate School of Business (GSB)
publisherStr Graduate School of Business (GSB)
record_format dspace
source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/36409 Oil price movements and exchange rate: evidence from selected net oil exporting countries in Africa Mdluli, Thobeka Alhassan, Abdul Latif Africa oil price movements oil price exchange rate This dissertation investigates the long and the short run relationships as well as the causal relationship between oil price movements and exchange rates. The study uses daily data for a 12-year period commencing in January 2007 and December 2018, focuses on four net oil exporting African countries, namely, Nigeria, Angola, Algeria and Egypt. The data was analysed using the time series techniques covering unit root, cointegration and causality analyses. The results of the study found that in the long run, oil prices movements are observed to be negatively related to the returns on the Nigerian Naira, Egyptian Pounds and Algerian Dinar indicating that an oil price increases result in the depreciation of the exchange rates for each of the aforementioned countries. In the short run, oil prices movements are observed to be positively related to the returns on Nigerian Naira, Egyptian Pounds and Algerian Dinar indicating that oil price increase results in the appreciation of the exchange rates. The causality results show evidence of bidirectional causality for the Nigerian Naira and the Angolan Dinar, unidirectional causality for the Egyptian pound and lastly no evidence of causality was found for the Angolan Kwanza. This dissertation suggests the policymakers to stabilize the effects of oil price movements through expansionary monetary policy, to shield African economies from sudden economic depression. 2022-05-03T08:24:24Z 2022-05-03T08:24:24Z 2021 2022-05-03T08:23:44Z Master Thesis Masters MCom http://hdl.handle.net/11427/36409 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce
spellingShingle Africa
oil price movements
oil price exchange rate
Mdluli, Thobeka
Oil price movements and exchange rate: evidence from selected net oil exporting countries in Africa
thesis_degree_str Master's
title Oil price movements and exchange rate: evidence from selected net oil exporting countries in Africa
title_full Oil price movements and exchange rate: evidence from selected net oil exporting countries in Africa
title_fullStr Oil price movements and exchange rate: evidence from selected net oil exporting countries in Africa
title_full_unstemmed Oil price movements and exchange rate: evidence from selected net oil exporting countries in Africa
title_short Oil price movements and exchange rate: evidence from selected net oil exporting countries in Africa
title_sort oil price movements and exchange rate evidence from selected net oil exporting countries in africa
topic Africa
oil price movements
oil price exchange rate
url http://hdl.handle.net/11427/36409
work_keys_str_mv AT mdlulithobeka oilpricemovementsandexchangerateevidencefromselectednetoilexportingcountriesinafrica

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