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The impact exchange rate policy on remittances in Morocco: A Threshold VAR analysis

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  • Farid Makhlouf

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

Abstract

The aim of this paper is to study the effect of nominal exchange rate movements (MAD to EUR) on remittances in the case of Morocco. It analyses monthly data from 2005 to 2014 using a Threshold Vector Auto Regression (TVAR) model to document the impact of exchange rate policy on remittances to Morocco. The results indicate that there is one best unique threshold at Euro/Moroccan Dirham= 11.2048: under the threshold, the effect of nominal exchange rate appreciation on remittances is positive, and above the threshold the effect is negative. These empirical results provide significant implications for the Central Bank of Morocco.
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Suggested Citation

  • Farid Makhlouf, 2014. "The impact exchange rate policy on remittances in Morocco: A Threshold VAR analysis," Post-Print hal-01884854, HAL.
    • Handle: RePEc:hal:journl:hal-01884854
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    Cited by:

    1. Farid Makhlouf & Refk Selmi, 2021. "The role of remittances in times of socio-political unrest: Evidence from Tunisia," Working Papers hal-03263815, HAL.
    2. Edelbloude, Johanna & Fontan Sers, Charlotte & Makhlouf, Farid, 2017. "Do remittances respond to revolutions? The Evidence from Tunisia," Research in International Business and Finance, Elsevier, vol. 42(C), pages 94-101.

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    More about this item

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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