تأثير سعر الفائدة على سعر صرف الجنيه المصري

Abstract EN

The study aims to test the effect of the interest rate on the value of the Egyptian pound, and the vectors self-regression model (VAR) was used, using the annual data for Egypt during the period (June 1991 - June 2020).

The effect was measured through two models.

The first model includes the variables of the nominal exchange rate, the domestic interest rate, the interest rate on foreign deposits and the ratio of foreign deposits to total deposits in Egypt.

The second model includes the variables of the nominal exchange rate, the ratio of foreign deposits to total deposits in Egypt, and the difference Interest rate (the interest rate on the Egyptian pound - the interest rate on foreign deposits).

The two models concluded that the relationship between the interest rate (on the local or foreign currency) and the Egyptian pound exchange rate is an independent relationship, as there is no effect of the behavior of the local interest rate on deposits in the Egyptian pound or interest on deposits in foreign currency or interest rate differences on the exchange rate of the Egyptian pound.

There is also no causal relationship from the domestic interest rate or interest rate differentials to the exchange rate.