Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/323162 
Year of Publication: 
2024
Citation: 
[Journal:] Ekonomika [ISSN:] 2424-6166 [Volume:] 103 [Issue:] 4 [Year:] 2024 [Pages:] 39-60
Publisher: 
Vilnius University Press, Vilnius
Abstract: 
The Egyptian pound (LE) has experienced multiple devaluations over the last few years. One of the proclaimed causes was the severe rise in the prices of Egypt's two main imports - wheat and oil - that followed the eruption of the Russian-Ukraine war and inflated Egypt's import bill, resulting in an increased shortage of the US dollars and creating downward pressures on the LE. Using a nonlinear autoregressive distributed lag (NARDL) method we probe whether an asymmetric relationship exists between Egypt's exchange rate and each of the international prices of oil and wheat. Short-run asymmetric effects of oil and wheat prices on Egypt's currency rate were found, as the latter rose in response to upsurges in the oil price and fell in response to downturns in the price of wheat, with no impacts from the opposite changes in the short run. Oil price rises may thus temporarily function as a weak hedge for the LE.
Subjects: 
Exchange rate
Oil price
Wheat price
ARDL
NARDL
Egypt
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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