Financial Dollarization and Exchange Rate Volatility in Ghana

  • George Tweneboah
Keywords: Dollarization, , exchange rate, volatility, exponential GARCH, Ghana

Abstract

This paper provide evidence on the effects of dollarization n the volatility of nominal and real Ghana cedi/U.S, dollar exchange rate forthe period january 1990 to March 2015 using exponential Generalised Autoregressive Conditional Heteroskedasticity(E-Garch) model. The Results provide evidence of a positive impact of dollarization on the votality of nominal bilateral  GHS/USD exchange rates.Thiss suggetsthat as the demand for  U.S dollars becomes  more extensive, the cedi dollar exchange rate becomes more volatile and unstable

Published
2018-02-01
Section
Articles