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Impact of Exchange Rate Fluctuation to the Romanian Foreign Currency Reserve

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  • Lavinia Diana Vasile

    (Academy of Economic Studies, Bucharest)

Abstract

In this article, we intend to indentify the impact of the currency rate of exchange variation of the two main currencies which represent Romania’s foreign currency reserve and the stress test it submits the latter. Up to the present moment there not established a cause-effect relationship or correlation between the foreign currency exchage rate was variation and the foreign currency reserve. In this respect we used an econometrics model based on cointegration analysis of the three series of data corresponding to the period of time 31.01.1995-31.06.2006 (the EURO exchange rate, the USD exchange rate and the foreign currency reserve).

Suggested Citation

  • Lavinia Diana Vasile, 2006. "Impact of Exchange Rate Fluctuation to the Romanian Foreign Currency Reserve," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 8(8(503)), pages 85-90, October.
    • Handle: RePEc:agr:journl:v:8(503):y:2006:i:8(503):p:85-90
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