Seasonality of Exchange Rates in Ghana

International Journal of Research in Economics and Social Sciences (IJRESS), Volume 5, Issue 3, March 2015

11 Pages Posted: 11 Apr 2015

See all articles by Barnes Evans

Barnes Evans

University of Mysore - Department of Studies in Economics and Cooperation

Vincent Tawiah

Griffith University; University of Mysore - Department of Commerce; University of Cape Coast; Dublin City University Business School

Date Written: March 10, 2015

Abstract

The seasonality of Ghanaian economic activities such as agriculture, consumption, money supply among others which affect exchange rate gives the impression that, the Cedi-US Dollar rate also follows a particular pattern within the year. Using quarterly interbank Exchange rate data from 2000 to 2014, sourced from Bank of Ghana, this study has established the quarterly behaviour of the Cedi against the US Dollar. To achieve this, both statistical analysis and econometric model including trend, F-Test, K-Test and regression were computed with the aid of X-12 Census ARIMA program provided by the US Census Bureau. Whiles the trend analysis suggest seasonal depreciation of the Cedi with peak in the fourth quarter, the regression results indicates statistically insignificant average mean difference between the quarters. However, the moving seasonality test showed a cyclical pattern of seasonal frequencies evolving from year to year. The general conclusion we established from the study is that depreciation of the Ghana cedi to the dollar follows a moving seasonality with a pattern constantly repeated year to year.

Keywords: Cedi, US Dollar, quarters, seasonality, depreciation

Suggested Citation

Evans, Barnes and Tawiah, Vincent, Seasonality of Exchange Rates in Ghana (March 10, 2015). International Journal of Research in Economics and Social Sciences (IJRESS), Volume 5, Issue 3, March 2015, Available at SSRN: https://ssrn.com/abstract=2593036

Barnes Evans

University of Mysore - Department of Studies in Economics and Cooperation ( email )

Manasagangothri
Mysore
India

Vincent Tawiah (Contact Author)

Griffith University ( email )

PMB 50
Gold Coast Queensland 9726
Australia

University of Mysore - Department of Commerce ( email )

Mysore
India

University of Cape Coast ( email )

PMB, UCC, GHANA
Department of English
Cape Coast, Central Region
Ghana

HOME PAGE: http://ucc.edu.gh

Dublin City University Business School ( email )

Dublin 9
Ireland

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
61
Abstract Views
470
rank
388,543
PlumX Metrics