Investigate How Changes in Exports, Remittances and Fdi and their Impacts on Reserves After Currency Floating. (Case Study: Turkey)
Doaa Wafik Nada1, Assem Tharwat2

1Doaa Wafik, Nada1Higher Institute of Administrative Sciences Egypt.
2Assem Tharwat, College of Business Administration, American University, Emirates, UAE.
Manuscript received on 28 April 2019 | Revised Manuscript received on 10 May 2019 | Manuscript Published on 17 May 2019 | PP: 597-615 | Volume-7 Issue-6S4 April 2019 | Retrieval Number: F11260476S419/2019©BEIESP
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Abstract: Currency devaluation is a monetary policy followed by some countries for variety of reasons, such as achieving a specific exchange rate objective or reviving competitiveness in the global market. The reasons for adopting currency devaluation differ from country to country and the results are as well influenced by several internal factors related to the economy and politics of the state or even external factors. In this paper, we will investigate how currency devaluation of the Egyptian pound could cause a positive effect on the Egyptian total foreign reserves minus gold. In addition, we will draw on the Turkish experience in devaluation and then provide recommendations on how to increase the positive impact of devaluation on the Egyptian total foreign reserves using time series data from 1985 to 2016 derived from a multiple linear regression model for Turkey. After analyzing the results, we found out that exports are the most important factor in supporting foreign reserves and are highly benefiting from the decision of floating the currency, taking into consideration that each country has different conditions therefore this experiment will beconsidering generating policies fitting Egypt.
Keywords: Devaluation, Monetary Policy, Egyptian Pound, Foreign Reserves, Multiple Linear Regression Models, Turkish Experience.
Scope of the Article: Regression and Prediction