Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members

This paper studies the relationship between oil price and the exchange rates of OPEC members from February 1999 to March 2016. The wavelet method is applied to combine information from both time and frequency domains, which does not require stationary and decomposition of original time series data....

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Main Authors:	Alatrturi, Basheer H. M., Alshammri, Ahmad Alrazni, Tuan Hussin, Tuan Muhd Taufik, Saiti, Buerhan
Format:	Article
Language:	English English
Published:	www.econjournals.com 2016
Subjects:	HG Finance
Online Access:	http://irep.iium.edu.my/51400/ http://irep.iium.edu.my/51400/ http://irep.iium.edu.my/51400/1/2253-7699-1-PB.pdf http://irep.iium.edu.my/51400/4/51400-Oil_price_and_exchange_rates_a_wavelet_analysis_for_organisation_of_oil_exporting_countries_members_SCOPUS.pdf

id	iium-51400
recordtype	eprints
spelling	iium-514002016-12-21T02:30:30Z http://irep.iium.edu.my/51400/ Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members Alatrturi, Basheer H. M. Alshammri, Ahmad Alrazni Tuan Hussin, Tuan Muhd Taufik Saiti, Buerhan HG Finance This paper studies the relationship between oil price and the exchange rates of OPEC members from February 1999 to March 2016. The wavelet method is applied to combine information from both time and frequency domains, which does not require stationary and decomposition of original time series data. The study found that the strength of the relationship between oil price and exchange rate divides into three main categories, namely oil price leads exchange rate, exchange rate leads oil prices, and the relationship keeps changing. Countries which currencies pegged to USD are lagging against oil price changes, countries with floating exchange rates and countries with an undisclosed weighted basket of international currencies leads the changes in oil price, and countries which their currencies pegged to Special Drawing Right (SDR) experience changing relationships. This finding suggests that the central banks of OPEC member countries should give importance to shocks on oil prices, while formulating their own exchange rate policy. www.econjournals.com 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/51400/1/2253-7699-1-PB.pdf application/pdf en http://irep.iium.edu.my/51400/4/51400-Oil_price_and_exchange_rates_a_wavelet_analysis_for_organisation_of_oil_exporting_countries_members_SCOPUS.pdf Alatrturi, Basheer H. M. and Alshammri, Ahmad Alrazni and Tuan Hussin, Tuan Muhd Taufik and Saiti, Buerhan (2016) Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members. International Journal of Energy Economics and Policy, 6 (3). pp. 421-430. ISSN 2146-4553 http://www.econjournals.com/index.php/ijeep/article/view/2253
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance
spellingShingle	HG Finance Alatrturi, Basheer H. M. Alshammri, Ahmad Alrazni Tuan Hussin, Tuan Muhd Taufik Saiti, Buerhan Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members
description	This paper studies the relationship between oil price and the exchange rates of OPEC members from February 1999 to March 2016. The wavelet method is applied to combine information from both time and frequency domains, which does not require stationary and decomposition of original time series data. The study found that the strength of the relationship between oil price and exchange rate divides into three main categories, namely oil price leads exchange rate, exchange rate leads oil prices, and the relationship keeps changing. Countries which currencies pegged to USD are lagging against oil price changes, countries with floating exchange rates and countries with an undisclosed weighted basket of international currencies leads the changes in oil price, and countries which their currencies pegged to Special Drawing Right (SDR) experience changing relationships. This finding suggests that the central banks of OPEC member countries should give importance to shocks on oil prices, while formulating their own exchange rate policy.
format	Article
author	Alatrturi, Basheer H. M. Alshammri, Ahmad Alrazni Tuan Hussin, Tuan Muhd Taufik Saiti, Buerhan
author_facet	Alatrturi, Basheer H. M. Alshammri, Ahmad Alrazni Tuan Hussin, Tuan Muhd Taufik Saiti, Buerhan
author_sort	Alatrturi, Basheer H. M.
title	Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members
title_short	Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members
title_full	Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members
title_fullStr	Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members
title_full_unstemmed	Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members
title_sort	oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members
publisher	www.econjournals.com
publishDate	2016
url	http://irep.iium.edu.my/51400/ http://irep.iium.edu.my/51400/ http://irep.iium.edu.my/51400/1/2253-7699-1-PB.pdf http://irep.iium.edu.my/51400/4/51400-Oil_price_and_exchange_rates_a_wavelet_analysis_for_organisation_of_oil_exporting_countries_members_SCOPUS.pdf
first_indexed	2023-09-18T21:12:46Z
last_indexed	2023-09-18T21:12:46Z
_version_	1777411362685714432

Oil price and exchange rates: a wavelet analysis for organisation of oil exporting countries members

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