Abstract
The purpose of this study is to analyze the effect of Deposit Interest Rate Regional Development Bank, Bank Deposit Interest Rate Government, Inflation, Economic Growth (Real GDP), and the money supply of the rupiah per US dollar. The study uses panel data regression analysis with the model Random Effects Model (REM) method and Pooled EGLS (cross section random effects). The results show that factors of interest rate Regional Development Bank, the interest rate on deposits Bank government, the level of inflation, economic growth, money supply have the simultaneous and significant impact on the rupiah per US dollar. While the partial test results show that the interest rate on deposits BPD and the amount of money circulating have a significant negative effect on the rupiah per US dollar. While variable economic growth (GDP) has insignificant negative impact on the rupiah per US dollar.
Highlights
International economic development is rapid, the economic relations between countries will be interlinked and lead to increased trade flows of goods and money and capital between countries
One important factor in the economy that led to the global economy is the currency exchange rate between countries, because every transaction made at this time is calculated by the value of certain currencies such as US dollars
Based on the results of the estimation parameters in the estimation model rupiah per US dollar (ER), and through testing simultaneously, the results showed that the factor interest rate Bank Government (RG) and the inflation rate (INF), positive and significant effect on the level of significant 5%, while the deposit interest rates Regional Development Bank (RL), National Economic Growth (GDP), the money supply (M1) was significantly negative effect on a significant level of 5%
Summary
International economic development is rapid, the economic relations between countries will be interlinked and lead to increased trade flows of goods and money and capital between countries. One important factor in the economy that led to the global economy is the currency exchange rate between countries, because every transaction made at this time is calculated by the value of certain currencies such as US dollars. The exchange rate of the currency of a country, especially in determining how much the value of their country's currency required to conduct transactions with other countries.
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