Effect of Macro Variables on Rupiah Exchange Rate
Journal Title: Dialektika : Jurnal Ekonomi dan Ilmu Sosial - Year 2021, Vol 6, Issue 2
Abstract
Indonesia's economy refers to an open economy. In conducting international trade, countries must compare their currencies with currencies belonging to other countries. Where, the United States currency, namely the dollar, is still the standard of world exchange rates and is used in international transactions. The effect of fluctuations in the exchange rate of the rupiah with the dollar is the occurrence of depreciation or appreciation which will affect Indonesia's economic activities. The purpose of this study is to determine the effect of inflation, the money supply (M2), the SBI interest rate, and foreign exchange reserves on the rupiah exchange rate in the short and long term. The variables that are thought to be able to influence changes in the rupiah exchange rate are the inflation rate, the money supply (M2), the SBI interest rate, and foreign exchange reserves. This research was conducted during January 2017 to December 2020, using the Error Correction Model (ECM). The result is a long-term and short-term relationship. In the short term, foreign exchange reserves and the money supply (M2) significantly affect the exchange rate. Meanwhile, in the long term, the SBI interest rate, money supply (M2), and foreign exchange reserves significantly affect the exchange rate.
Authors and Affiliations
Duwik Tri Utami, Fitrah Sari Islami
The Influence of Democratic Leadership Styles on Employee Psychological Empowerment: Literature Review
The ideas used in improving a company come from its human resources. Employees are a source of human energy that holds an important position in the implementation of the vision, mission, and objectives of an industry. Em...
Interest of ASN Riau Islands Provincial Government in Fulfillment of Competency Development
The ASN competency development paradigm underwent massive changes, most of which shifted towards learning methods that relied on technology. Meanwhile, most of the ASN in the Riau Islands Provincial Government are genera...
The Government's efforts to develop MSMEs through the Car Free Day Program in Kraksaan City
The purpose of this study is to find out the efforts of the Kraksaan City government, Proboliggo Regency in developing MSMEs through the Car Free Day (CFD) program. Based on the discussion of research results regarding t...
Analysis of Factors Influencing the Determinants of Online Shopping
Online shopping is an activity of buying and selling by utilizing the development of internet technology. The higher level of online shopping consumers has led to the phenomenon of e-commerce, like Zalora and Lazada. Con...
The Role of Internal Audit, Fraud Detection, and Prevention in Universities: A Literature Review
From time to time, transparency and accountability in universities have grown wider and encourage universities to make quality reports that are free from fraud. This study examines the role of internal audit in detecting...