Determinants of foreign exchange reserves in Serbia and North Macedonia
Determinants of foreign exchange reserves in Serbia and North Macedonia
Author(s): Mile Bošnjak, Vlatka Bilas, Gordana KordićSubject(s): Politics, Economy, National Economy, Supranational / Global Economy, Economic policy, International relations/trade
Published by: Економски факултет Универзитета у Београду
Keywords: international foreign exchange reserves; quantile regression; foreign exchange rate; GDP; monetary aggregates
Summary/Abstract: This paper employs a quantile regression approach to explore the determinants and properties of international foreign exchange reserves in Serbia and North Macedonia, at various foreign exchange levels. The observed period covers quarterly data for 2005q1-2019q1. The results reveal quantile-dependent determinants of foreign exchange reserves and enable comparison between the two countries, showing co-movements between monetary policy and economic fluctuations. Following the estimates obtained in this research, the paper compares the role of foreign exchange reserves in Serbia and North Macedonia.
Journal: Economic Annals
- Issue Year: 65/2020
- Issue No: 226
- Page Range: 103-120
- Page Count: 18
- Language: English
