The Impact of Macroeconomic Indicators on Indonesia’s Foreign Exchange Reserve Position
A country’s foreign exchange reserves are its foreign currency savings that can be utilized to finance international transactions. The purpose of this study is to determine how macroeconomic indicators (exports, imports, exchange rates, inflation rates, and foreign debt) influence Indonesia’s foreig...
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Muhammadiyah University Press
2022-05-01
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| Series: | Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan |
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| Online Access: | https://journals2.ums.ac.id/index.php/jep/article/view/9434 |
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| author | Surya Rahmawati Suriani Suriani |
| author_facet | Surya Rahmawati Suriani Suriani |
| author_sort | Surya Rahmawati |
| collection | DOAJ |
| description | A country’s foreign exchange reserves are its foreign currency savings that can be utilized to finance international transactions. The purpose of this study is to determine how macroeconomic indicators (exports, imports, exchange rates, inflation rates, and foreign debt) influence Indonesia’s foreign currency reserves. The researchers used secondary data in the form of monthly time series, as well as quantitative analysis using multiple linear regression. The model that was used was the Vector Error Correction Model (VECM). According to the research, future exports and external debt have a positive impact on Indonesia’s foreign exchange reserves. Indonesia’s foreign exchange reserves are negatively impacted by imports and predicted inflation rates, whereas the rupiah exchange rate has no effect. In the model, there is a short-run to long-run equilibrium relationship. The IRF results show that shocks from other independent variables have little effect on foreign exchange reserves and that the foreign exchange reserves variable contributes the most to the shocks that occur. |
| format | Article |
| id | doaj-art-26c8d5e7c8fe40cb95e627a3d222a532 |
| institution | DOAJ |
| issn | 1411-6081 2460-9331 |
| language | English |
| publishDate | 2022-05-01 |
| publisher | Muhammadiyah University Press |
| record_format | Article |
| series | Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan |
| spelling | doaj-art-26c8d5e7c8fe40cb95e627a3d222a5322025-08-20T02:41:31ZengMuhammadiyah University PressJurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan1411-60812460-93312022-05-01193010.23917/jep.v23i1.176739497The Impact of Macroeconomic Indicators on Indonesia’s Foreign Exchange Reserve PositionSurya Rahmawati0Suriani Suriani1Department of Development Economics, Faculty of Economic and Business, Universitas Syiah KualaDepartment of Development Economics, Faculty of Economic and Business, Universitas Syiah KualaA country’s foreign exchange reserves are its foreign currency savings that can be utilized to finance international transactions. The purpose of this study is to determine how macroeconomic indicators (exports, imports, exchange rates, inflation rates, and foreign debt) influence Indonesia’s foreign currency reserves. The researchers used secondary data in the form of monthly time series, as well as quantitative analysis using multiple linear regression. The model that was used was the Vector Error Correction Model (VECM). According to the research, future exports and external debt have a positive impact on Indonesia’s foreign exchange reserves. Indonesia’s foreign exchange reserves are negatively impacted by imports and predicted inflation rates, whereas the rupiah exchange rate has no effect. In the model, there is a short-run to long-run equilibrium relationship. The IRF results show that shocks from other independent variables have little effect on foreign exchange reserves and that the foreign exchange reserves variable contributes the most to the shocks that occur.https://journals2.ums.ac.id/index.php/jep/article/view/9434exchange reservesexportsimportsexchange ratesinflation |
| spellingShingle | Surya Rahmawati Suriani Suriani The Impact of Macroeconomic Indicators on Indonesia’s Foreign Exchange Reserve Position Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan exchange reserves exports imports exchange rates inflation |
| title | The Impact of Macroeconomic Indicators on Indonesia’s Foreign Exchange Reserve Position |
| title_full | The Impact of Macroeconomic Indicators on Indonesia’s Foreign Exchange Reserve Position |
| title_fullStr | The Impact of Macroeconomic Indicators on Indonesia’s Foreign Exchange Reserve Position |
| title_full_unstemmed | The Impact of Macroeconomic Indicators on Indonesia’s Foreign Exchange Reserve Position |
| title_short | The Impact of Macroeconomic Indicators on Indonesia’s Foreign Exchange Reserve Position |
| title_sort | impact of macroeconomic indicators on indonesia s foreign exchange reserve position |
| topic | exchange reserves exports imports exchange rates inflation |
| url | https://journals2.ums.ac.id/index.php/jep/article/view/9434 |
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