Value Of Currency Research Articles

The Effect of Inflation, Bi Rate, JUB, Exchange Rate, and SBIS on the Jakarta Islamic Index in 2010-2023

Purpose: Despite variations in economic indicators such as inflation, central bank interest rates, monetary supply, currency valuations, and Islamic financial products, the Jakarta Islamic Index maintains steady stock trading performance. The study examines how various economic factors influenced the Jakarta Islamic Index (JII) between 2010 and 2023. In particular, it explores how the index's behavior is shaped by inflationary pressures, Bank Indonesia's benchmark rate, money circulation, foreign currency exchange rates, and Islamic-compliant certificates issued by Bank Indonesia.Design/Method/Approach: The study utilizes quantitative methods, analyzing data collected over time from credible institutions such as Bank Indonesia, the Financial Services Authority, the Central Statistics Agency, and other reputable sources. Various analytical approaches are employed, including classical assumption testing, multiple linear regression, individual and collective significance evaluations, and determination coefficient analysis. This research employs various analytical techniques to examine how multiple economic variables (including inflation rates, the Bank Indonesia interest rate, money supply levels, currency exchange rates, and Bank Indonesia Sharia Certificates) potentially influence or correlate with the performance of the Jakarta Islamic Index.Findings:The study's results indicate that among the economic factors analyzed, such as Inflation, BI Rate, Money Supply, and Bank Indonesia Sharia Certificates, most did not show significant individual effects on the Jakarta Islamic Index. The exchange rate, however, emerged as the only factor with a notable individual impact. Collectively, when all these economic variables were considered together, they were found to have a combined influence on the Jakarta Islamic Index.Originality/Values: This study's findings offer valuable information for both investors and policymakers, shedding light on the intricate workings of the Islamic capital market and pinpointing crucial economic factors that shape its performance.ABSTRACTPurpose: Despite variations in economic indicators such as inflation, central bank interest rates, monetary supply, currency valuations, and Islamic financial products, the Jakarta Islamic Index maintains steady stock trading performance. The study examines how various economic factors influenced the Jakarta Islamic Index (JII) between 2010 and 2023. In particular, it explores how the index's behavior is shaped by inflationary pressures, Bank Indonesia's benchmark rate, money circulation, foreign currency exchange rates, and Islamic-compliant certificates issued by Bank Indonesia.Design/Method/Approach: The study utilizes quantitative methods, analyzing data collected over time from credible institutions such as Bank Indonesia, the Financial Services Authority, the Central Statistics Agency, and other reputable sources. Various analytical approaches are employed, including classical assumption testing, multiple linear regression, individual and collective significance evaluations, and determination coefficient analysis. This research employs various analytical techniques to examine how multiple economic variables (including inflation rates, the Bank Indonesia interest rate, money supply levels, currency exchange rates, and Bank Indonesia Sharia Certificates) potentially influence or correlate with the performance of the Jakarta Islamic Index.Findings:The study's results indicate that among the economic factors analyzed, such as Inflation, BI Rate, Money Supply, and Bank Indonesia Sharia Certificates, most did not show significant individual effects on the Jakarta Islamic Index. The exchange rate, however, emerged as the only factor with a notable individual impact. Collectively, when all these economic variables were considered together, they were found to have a combined influence on the Jakarta Islamic Index.Originality/Values: This study's findings offer valuable information for both investors and policymakers, shedding light on the intricate workings of the Islamic capital market and pinpointing crucial economic factors that shape its performance.

Національний банк України як суб'єкт адміністрування торгівлі валютними цінностями

Abstract. The article is devoted to the definition of the features of the functioning of the currency market in modern conditions, the analysis of existing challenges and threats caused by military actions, the economic situation of the state, the activities of entities that play an important role in the public administration of banking and financial legal relations. A thorough analysis of the peculiarities of the implementation of functions by the National Bank of Ukraine in the field of public administration of currency trading is presented. Particular attention is paid to determining the competence of the National Bank of Ukraine as a subject of currency control. It was established that in Ukraine it is the National Bank of Ukraine that plays an important role as the subject of foreign exchange control, in particular, regarding compliance with the rules of regulation of foreign exchange transactions in relation to banks, persons who have received a license to carry out foreign exchange transactions, implements scheduled and unscheduled inspections. The effective organization of public administration of the defined sphere of financial relations is achieved through the adoption of normative legal acts of the Board of the National Bank of Ukraine. The peculiarities of the organization and implementation of financial monitoring and currency supervision by the National Bank of Ukraine are analyzed. It was determined that an important area of activity of the National Bank of Ukraine is the protection of the rights of consumers of financial services, supervision of compliance by banks and other providers of financial services with the current laws on the protection of consumer rights. The transformational changes in the banking system that have been taking place in recent years under the leadership of the National Bank of Ukraine, including the digitization of the state's banking sector, have been analyzed. It was found out that the military actions led to the radical actions of the National Bank of Ukraine in the sphere of administration of trade in currency values, which helped to calm the panic of the population in the conditions of the beginning of the war in the country. Keywords: currency; foreign exchange market; foreign exchange values; public administration; trading of foreign exchange values; public administration of trading of foreign exchange values.

D. I. Mendeleev on the unity of measures, weights and money: an analysis from the point of view of modern metrology

The article analyzes the validity of D. I. Mendeleyev's statement made in 1867 about the need to maintain the unity of measures, weights and money to ensure fair trade and rapprochement between nations. It is shown that under the conditions of the monetary system and the “gold standard” monetary system, it was the observance of the unity of measures, weights and money that allowed states to sovereignly establish and maintain a stable value of their money for a sufficiently long time. This, in turn, ensured confidence in the stable value of money, equality of trading parties, and fair trade in states that supported the unity of measures, weights and money. The global financial and market system created in the 21st century abandoned the observance of the metrological principles of the unity of measures, weights and money, replacing the stable “material” value of national money with its market price. The negative consequences of this step became apparent quite quickly. The value of national currencies ceased to be stable, the international market became unequal. It is shown that in the conditions of the modern global financial and market system, fair international trade is impossible in principle. The article proposes and substantiates the need to return to the unity of measures, weights and money, which allows ensuring the stability of means of payment, equality of trading parties.

Konsep Terms Of Trade dan Dampaknya Terhadap Ekonomi Suatu Negara

Terms of Trade (ToT) is a crucial indicator in international trade that illustrates the ratio between a country's export prices and import prices. This concept provides an overview of a country's purchasing power in the global market and reflects the relative benefits gained from trade. An increase in ToT indicates enhanced purchasing power, leading to benefits such as trade surpluses, strengthened currency value, and economic growth. Conversely, a decline in ToT negatively impacts a country, causing inflation, trade deficits, and weakened public purchasing power. Factors such as global commodity price fluctuations, exchange rates, export-import demand, and trade policies significantly influence ToT. This study highlights the importance of understanding ToT as a strategic tool in formulating trade and economic policies, especially for countries reliant on commodity exports. With proper understanding, countries can mitigate the adverse effects of ToT fluctuations and enhance societal welfare through adaptive and responsive policies.

Enhancing foreign exchange reserve security for central banks using Blockchain, FHE, and AWS

In order to maintain the value of the national currency and control foreign debt, central banks are vital to the management of a nation’s foreign exchange reserves. These reserves, however, are vulnerable to a variety of hazards, including as money laundering, fraud, theft, and cyberattacks. These are issues that traditional financial systems frequently face because of their vulnerabilities and inefficiency. Using modern innovations in a blockchain-based solution can help tackle these serious issues. To protect data privacy, the Microsoft SEAL library is utilized for homomorphic encryption (FHE). For the development of smart contracts, Solidity is employed within the Ethereum blockchain ecosystem. Additionally, Amazon Web Services (AWS) is leveraged to provide a scalable and powerful infrastructure to support our solution. To guarantee safe and effective transaction validation, our method incorporates a hybrid consensus process that combines Proof of Authority (PoA) with Byzantine Fault Tolerance (BFT). The administration of foreign exchange reserves by central banks is made more secure, transparent, and operationally efficient by this all-inclusive approach.

Investigation of Inflation and Wage Dynamics in Nigeria: New Empirical Insights

The current inflationary pressure in Nigeria is eroding the purchasing power of the salaried workers and the value of the national currency with the proposition that it could worsen the welfare of the citizens despite the abject and extreme poverty that prevails in the country. The paper therefore made an empirical investigation into the inflation and wage dynamics in Nigeria. The variables were tested for unit roots using ADF tests. The unit roots shows that all the variables are non-stationary at levels except the Consumer Price Index of Transportation (CT) and Wages and Salaried Workers as Proportion of Total Employment (WSW). Employee compensation including remittances (COMP), inflation rate (INFR), WSW and Consumer Price Index of Transportation (CT) are stationary at first difference. Autoregressive Distributed Lag (ARDL) model was used in the methodology. The ARDL long-run result shows that the Consumer Price Index for Food (CF) has the highest impact on the Compensation of Employees (COMP). For every 1 percent change in COMP, CF changes by 19 percent. As INF rises, COMP falls. This is shown by the negative coefficient of INFR. The long-run result also suggests that for every 1 percent change in COMP, CT increases by 9%.The short-run dynamic model showed that a 6% fall in the lag period of inflation level led to a 1% increase in employee compensation and a one-year previous period fall of 30% in WSW, bringing about I% increase in employee compensation. The long-run model showed that the variables are co-integrated which indicates that variation in the short run will be corrected in the long run with 59% speed of adjustment. The study shows that the main drivers of inflation in Nigeria are Consumer Price Index for Food (CF) and Consumer Price Index for Transportation (CT) which directly have negative impact on Employee Compensation (COMP). In line with the above findings, It was recommended that maximum price legislature, demonetisation of currency, exercising great caution in incurring public debt, drastic reduction in government expenditure and adoption of rational wage policy can be a viable macroeconomic policy option.

Does Political Stability Matter for the UK and the USA? The Time Variant Analysis through Rolling Window Causality Approach

Abstract The study aims to examine the time-varying causality between political stability and economic growth. Secondly, study also evaluates the effect of political stability on economic growth of the United Kingdom and the United States. Therefore, a time-series model is proposed to assess the framework’s constancy with time, which assumes that the coefficients are stable throughout time. A rolling window technique has been applied to the dataset from the year 2002 to 2019, respectively. The results indicate that the time-varying positive bidirectional causality is present between political stability and economic growth for a particular subsample, verifying the effect of political stability on economic growth and vice versa. Hence, our results exhibit that the connection between two-series would benefit the economy due to the positive yet significant relationship. Therefore, uncertain political conditions would directly affect the economy’s growth rate in terms of tourism, currency value, investment, and other growth factors. Whereas, if the uncertainty regarding the political environment reduces, it would be advantageous for economic development.

Analysing Real Exchange Rate Effects on the Trade Balance in South Africa

For years, policymakers and economists have been researching the significance of the native currency value versus other currencies in favouring the country’s trade balance and total. Therefore, this study investigates the impact of the real exchange rate change on the trade balance in South Africa. The study used annual time series data from 1980 through 2022. This study used the ARDL technique to analyse data. Variables used in this study include the trade balance, real exchange rate, terms of trade, money supply, South Africa’s gross domestic product, and the Chinese gross domestic product. Bounds tests showed that the variables are cointegrated. According to the empirical findings, the real exchange rates have significantly influenced the trade balance positively in the short run but in the long run, have a negative significant influence on the trade balance. The terms of trade have a positive significant influence on the trade balance in the short run, but it appears to be positively significant in the long run. The money supply in the short run has an insignificant negative relationship with the trade balance but in the long run, has a significant positive relationship with the trade balance. The SA gross domestic product has a significant negative impact on the trade balance both in the short and long run. Lastly, the Chinese gross domestic product has a negative insignificant relationship with the trade balance in the short. However, in the long run, it has a positive significant relationship with the trade balance. This proves that a rise in Chinese GDP, as a proxy for foreign economic activity, boosts South African exports to the rest of the world in the long term. As a result, the trade balance improves as China imports minerals from South Africa for production purposes. The dependence on currency depreciation to enhance trade in South Africa can improve its trade balance, but it may also damage the economy due to the country’s reliance on imports. However, the advice to weaken the South African currency should not be so harsh as to have a negative impact on the importation of key capital goods critical to the growth and development of the South African economy. It is recommended that the government reduce demand for imported products and boost domestic manufacturing, which might lead to domestic products being exported. The central bank must also stabilize the currency to increase competitiveness by decreasing the overseas price of exports and increasing the cost of imports.

Economic Motives for Committing Crimes of Encroachment on Money and Wealth

The main issue is to explain the economic motives that cause the encroachment of money and wealth. The aims of this study are to: identify general economic motives, such as; (economic developments and economic instability), Also specific economic motives, such as; (Poverty and unemployment) are related to crimes of encroachment of money and wealth. The descriptive analytical method was used in the study. The type of research is an analytical theoretical research. In light of theoretical directions such as capitalist system theory and subculture theories, the study concluded that the capitalist system in managing the country's economy. Causes crimes of encroachment on people's money and wealth, regarding the theory of Differential Opportunity theory, our research shows that the lack of legitimate opportunities to achieve material goals among the poor, opens the door to crimes. The Developments of the economic status in society; especially in the industrial and commercial sectors, with weak supervision of societal rules and laws, encourage financial crimes. Especially, fraud and dishonesty in trust, in an attempt to improve the economy, get rich and satisfy desires, it was found that the economic instability of prices, incomes and currency values in society create a bad and unbalanced economic situation for individuals. Poverty and unemployment also cause the loss of human potential to provide the basic necessities of life for one’s family, which then becomes a strong motivation for the crimes of encroachment on money and wealth.

The Safe Heaven Appeal of Gold: A Comparative Analysis of Gold Price and Nifty50 Index during Financial Crises

The historical view of gold as a trustworthy investment has made it a popular choice as a place of refuge resource during seasons of financial strife. This study looks at how the bullion market responds to financial crises and how the perceived safety of gold during a period of uncertainty affects market behaviour. This research looks at how gold prices, investor actions, and market liquidity have changed throughout various economic downturns, like the Coronavirus pandemic and the 2008 monetary emergency. The paper evaluates the effect of gold's safe-haven status on market performance and investor trust using both quantitative and qualitative methods. The findings show that although demand for gold rises during times of crisis, other factors like market speculation, fluctuations in interest rates, and changes in currency values also have an impact on price movements of gold. The study highlights the complex relationship that exists between the market dynamics of gold and its role as a protective asset, providing a comprehensive understanding of the metal's behaviour during financial instability. These findings offer insightful guidance for investors and policymakers navigating economic downturns and add to the larger discussion on asset diversification and risk management techniques.

Система публічного адміністрування nоргівлі валютними цінностями

The article is devoted to the definition of the system of public administration of trade in currency values, the problem of theoretical substantiation of its elements, the main types of manifestations of the administration of this sphere, the study of the subjects of the implementation of administration functions, the study of the current legislation regulating this sphere of public-legal relations. Particular attention is paid to the definition of the content of the category “trade in currency values”, the disclosure of the legal nature and features of the category “public administration”, the outline of the approaches to the definition of its content and constituent elements available in domestic science. The definition of the system of public administration of trade in currency values and its constituent elements was carried out within the framework of the instrumental theory in law. It was established that, taking into account the initial provisions of the instrumental theory, the instruments of public administration of currency trading in Ukraine should be considered the norms of the current legislation, which determine the procedure for carrying out, in particular, the licensing of this activity, its control, taxation, the application of other management measures, prohibitions in this sphere, activity and law-enforcement acts of public administration bodies that carry out such management activities are empowered to impose administrative and financial sanctions. A proper definition of the category “administration of trade in currency values in Ukraine” is proposed. It was determined that the administration of trade in foreign exchange values takes place on the basis of complexity, reasonableness, flexibility of implementation and adaptability to the conditions of application of control and other measures, the expediency of their application, and orientation towards the consistent solution of current and long-termtasks of the state’s currency policy. The peculiarities of the functioning of subjects of the administration of currency trade in Ukraine, including the National Bank of Ukraine, the Ministry of Economy of Ukraine, the National Commission for Securities and the Stock Market, the State Tax Service of Ukraine and the Cabinet of Ministers of Ukraine in general, have been determined. It was found that the main subject of the administration of the outlined spheres of public legal relations is the National Bank of Ukraine. It is he who implements administrative, regulatory, control and other instruments in the field of currency relations. At the same time, other areas of implementation of the administration are disclosed, in particular, the activity of public administration bodies within the framework of taxation procedures of the researched activity is outlined.

Analysis of Monetary policy in Muslim Majority Countries: Tunisia

This research aims to analyze the monetary policy of Tunisia, a country with a Muslim-majority population, from both conventional and Islamic perspectives. Monetary policy, under the responsibility of the Central Bank, seeks to maintain currency stability and ensure overall economic strength. Islamic monetary policy specifically incorporates principles such as the prohibition of usury (riba), currency stability, the avoidance of excessive speculation, promoting productive financing, distributive justice, inflation control, and transparency. Tunisia, with its majority Muslim population, provides an interesting case for examining how Islamic principles are reflected—or not—in its monetary policy. This study employs a descriptive qualitative methodology, utilizing secondary data from library research, including websites and scientific journal articles. The findings show that Tunisia's monetary policy has a significant impact on economic indicators such as price stability, currency value, and overall economic growth, contributing to benefits like increased employment, higher purchasing power, improved investment levels, and sustainable economic prosperity. Key tools include interest rates, open market operations, reserve requirements, foreign currency interventions, selective credit policies, and macroprudential regulations.

Export of agricultural products as a determinant of currency security of Ukrainian economy

Purpose. The purpose of this study is the development of the methodological approach for estimation the impact of agri-food exports on the monetary sphere of Ukraine in order to substantiate the prospective directions of the export potential of agricultural products as the factor in ensuring the currency security of Ukraine. Methodology / approach. The following methods were used: literature review in determining the main trends in the export of agricultural products based on the analysis of publications; economic and statistical analysis to assess the impact of key factors on the formation of the export potential of agricultural products and its impact on exchange rate formation; ARDL modelling, Dickey-Fuller, and Engle-Granger tests to estimate the impact of different factors on exchange rate changes. Results. The paper highlights the immediate and delayed influence of selected factors on the dynamics of the exchange rate in Ukraine, showing that the export of food products and raw materials for their production can significantly strengthen the national currency in the long-run. The continuous growth in food exports contributes to a slower appreciation of the exchange rate, which ultimately leads to a stronger national currency. Therefore, the strategy of focusing on increasing food exports can play a vital role in bolstering the Ukrainian currency in the long-run by exerting a positive influence on the exchange rate dynamics and contributing to the overall economic stability. Originality / scientific novelty. The study contributes to the understanding of the complex interplay between war, food security, and economic stability. The novelty implies the ARDL model of the influence of agricultural exports on the currency and exchange rate sphere of the Ukrainian economy. Additionally, the analysis adds new dimension to the discussion on the strategic importance of the agricultural sector for foreign exchange reserves and currency accumulation. Practical value / implications. The practical value is that understanding the relationship between export volumes, global prices, and exchange rate movements can help in predicting and managing currency fluctuations more effectively. By identifying the time frames for the return of exchange rate shocks to their long-term equilibrium and the impact of various factors on currency valuation, the study aims policy-making processes at ensuring currency security for the state.

Implementation of Gold Bullion Funding as Alternative Instruments to Overcome the Problem of Currency Fluctuation

Infrastructure development has an important contribution in improving the national economy and realizing people's welfare. However, there are still problems in the implementation, namely the government's limited ability to fund infrastructure development projects. For this reason, the government has actually attempted to create a mechanism in the form of Public Private Partnership (PPP) by emphasizing risk sharing between the government and the private sector. However, this effort did not run smoothly because there were other risks, one of which was related to project financing which was at risk of currency value fluctuations. This situation shows that there is a need for a solution to optimize project financing in Indonesia through the Gold Bullion Funding (GBF) mechanism. The research method used is normative legal research by utilizing a qualitative method in analyzing data or secondary data through searching regulations and literature related to the object of the problem. Based on the research results, the author initiated the GBF mechanism to answer problems related to the implementation of project finance in PPPs. Regarding its implementation, the GBF mechanism will refer to the OJK regulation regarding the implementation of bullion business activities in order to optimize the government's role in forming the bullion ecosystem in Indonesia. With this mechanism, problems related to currency fluctuations in project finance in Indonesia can be resolved so that development can be realized that is effective, efficient and provides benefits to society.

Legal aspects of currency restrictions introduced by the National Bank of Ukraine for business under martial law

The article examines the definition of such concepts as «currency», «currency transaction», «currency values» and «currency regulation» in the legislation of Ukraine and scientific works of domestic scientists. The introduced currency restrictions and prohibitions were analyzed in accordance with the Resolution of the NBU Board «On the operation of the banking system during the introduction of martial law» No. 18 of February 24, 2022. In addition, a number of resolutions of the NBU Board in 2023–2024 regarding softening and optimization of a number of currency restrictions in order to prevent an unproductive outflow of capital to protect Ukraine’s international reserves and preserve the stability of the currency market were also studied. Thus, the introduction of the regime of managed flexibility of the exchange rate by the NBU was considered, in accordance with the Strategy for easing currency restrictions. The emphasis is placed on the fact that the main criterion for determining the priority of easing currency restrictions is the urgency of correcting distortions in the market and supporting economic recovery, taking into account the relevant risks for exchange rate stability and international reserves in accordance with the Roadmap developed by the NBU. The author drew attention to the limitation of cross-border transfers by Ukrainian ТЕОРЕТИКО-ПРИКЛАДНІ ТА ГАЛУЗЕВІ АСПЕКТИ 480 • АЛЬМАНАХ ПРАВА • 2024 • Випуск 15 • companies aimed at the execution of court decisions regarding foreign companies, settlement agreements concluded in the course of court proceedings and agreements concluded as a result of the court’s review of cases on recognition and granting of permission to execute the judgment of a foreign court. The author draws the attention of businesses to the observance of the deadlines for settlement of operations on export and import of goods, which amount to 180 calendar days and apply to operations carried out from April 5, 2022. Based on the analysis of court practice, it is proposed to make appropriate changes to Clause 14 of the above-mentioned Resolution of the Board of the National Bank of Ukraine No. 18 regarding the addition of clauses 46 and 47 to the list of exceptions to restrictions: «46) all transactions related to the implementation of the Convention on the Recognition and Enforcement of Foreign Court Decisions in Civil or Commercial Matters from July 2, 2019; 47) transactions related to the implementation by resident legal entities of private form of ownership of decisions of foreign courts and settlement agreements concluded by the parties in the process and/or as a result of consideration of the case by the court, including cases regarding the recognition and granting of permission for the implementation of decisions of foreign courts in Ukraine». Key words: currency, currency values, currency operations, currency regulation, currency restrictions, bank, National Bank of Ukraine, banking legislation.

국제 비교를 통한 교통법규 위반 범칙금 수준 분석

Punishment for violations of road traffic laws is mostly imposed in the form of financial sanctions such as fines. While Korea's per capita gross product has increased by 264% over the past 30 years, fines for violating traffic laws have not changed, and as a result, some point out that the unrealistic financial penalties level does not function properly as a deterrent to violations. Accordingly, this study attempted to compare the fines for traffic law violations in major countries and Korea and suggest an appropriate increase level. Since there are differences in income scale, prices, and currency values from country to country, to control this, economic indicators such as GDP per capita, minimum wage, comparative price level, and Big Mac index were used to compare financial penalties levels under the assumption that income and price levels were the same. As a result of the study, it was confirmed that, except for drunk driving, the financial penalties level in Korea is at least 2 to 3 times lower, and in particular, the financial penalties for speeding is about 5 to 7 times lower. In light of these results, it seems that the level of fines for violations of traffic laws in Korea needs to be reexamined. However, the low level of sanctions does not necessarily represent the need for strengthening regulations, so it is time for additional research and social discussion to establish appropriate measures to increase fines in the future.

CLASSIFICATION MODEL FOR INDIAN CURRENCY USING DEEP LEARNING

The field of deep learning has revolutionized computer vision and image recognition, enabling significant advancements in various domains. Image recognition, in particular, has become a prominent use case for deep learning, finding applications in diverse fields for tasks such as image filtering and categorization. One domain where image processing plays a crucial role is the banking sector, where it is used to classify and verify currency notes. In this project, our aim is to propose a machine learning model specifically designed for the classification of Indian currency notes and coins. The model will have the capability to accurately classify and identify the denomination value of paper notes as well as coins. This classification system can be instrumental in detecting fake and counterfeit currencies, providing a valuable tool for ensuring the integrity of financial transactions. Furthermore, the proposed model can be integrated into existing notes and coins counters, as well as vending machines, to automate the classification process and enhance efficiency. By leveraging machine learning techniques, this project aims to streamline currency recognition processes and provide a reliable solution for accurately identifying the denomination value of Indian currency, benefiting various industries and sectors that deal with cash transactions. Keywords—Deep Learning, Convolutional Neural Network, Image Classification, Feature Extraction, Currency Recognition, Data Augmentation

Between Exchange Rate Returns and Crude Oil Returns in Oil-Importing Countries

Fluctuations in the financial markets stem from the reactions of investors to both market activities and more wide-ranging macroeconomic indices. This research examines the interconnectivity between returns on exchange rates and crude oil prices for ten oil-importing countries. Quarterly data spanning the period from 2000Q1 to 2022Q4 was used in the estimation. Returns had to be calculated from raw data, which were exchange rates and crude oil prices. The research methodologies include quantile regression and VAR-GARCH estimations. The study revealed a long-term association between crude oil market returns and foreign exchange markets, with currency fluctuations negatively impacting crude oil returns. The spill-over effect from the currency market to the oil market is weaker than the transmission effect from the oil market to the currency market of oil-importing countries. In particular, it was empirically established that shocks from past volatility in the currency markets of countries that import oil had commensurately lower volatility in the oil market by 6 percent. Whereas, the spillover from the crude oil market to the currency market depicts that increased turbulence on the crude oil market in the current period stimulated 55.66 percent amplified volatility in the currency market for oil-importing nations. Oil returns had a volatility persistence value of 0.1255, ratifying the weak volatility persistence of oil returns. The size of the volatility persistence of exchange rate returns is 0.997, an indication of high volatility persistence for currency returns. The study found the absence of leverage effects for currency values given a positive coefficient with a magnitude of 0.8529. In other words, bad news does not cause higher turbulence in exchange rate returns than good news will. For crude oil returns, the size of the leverage effects term is -0.0529, which is negative and significant (p<.05), implying that bad news in oil-importing economies has asymmetric impacts on the volatility of returns on crude oil prices. In effect, the oil price returns react more strongly to bad news than these returns react to good news. The findings of the study underscore the intricate relationships between local currencies and energy prices within the context of a global financial market, highlighting the significance of understanding these dynamics for effective decision-making and risk management in an increasingly interconnected world. It was recommended, among others, that international collaboration amongst countries is crucial given the global nature of energy markets.

Relationship Between Exchange Rate and Inflation in Afghanistan

Afghanistan is an import dependent country and has been facing perpetual trade balance deficit for decades. In case of imperfect competition in the market or existence of market monopoly, there is a higher chance of reflecting the exchange rate changes on the prices of the goods. In Addition, countries with low level of domestic production and higher amounts of imports usually experience higher degree of the exchange rate pass-through effect on inflation. Countries with high import volumes and low export levels often face a deficit in foreign currency inflows and an excess in outflows. These countries need substantial foreign currency to purchase and import goods from both neighboring and international markets, increasing domestic demand for foreign currencies and consequently leading to domestic currency depreciation. This study investigated the relationship between exchange rates and inflation in Afghanistan, examining how exchange rates impact inflation and the benefits associated with exchange rate mechanisms. The primary research questions include: What is the relationship between exchange rates and inflation in Afghanistan? How does the exchange rate influence inflation in the country? What are the benefits of exchange rate systems? The hypothesis posits that higher inflation typically depresses a country's currency value and that exchange rates directly affect inflation. Additionally, exchange rates determine the value of currency exchanges between different nations. This research aims to elucidate the relationship between exchange rates and inflation in Afghanistan, assess the impact of exchange rates on inflation, and explore the benefits of exchange rate systems. The methodology involves a binary system and utilizes secondary data collected from books, websites, and research papers. Findings indicate that Afghanistan's reliance on imports results in a persistent trade balance deficit, with a significant portion of goods, especially non-food items, being imported due to insufficient domestic production. To import goods, Afghanistan requires foreign currencies, which are typically earned through exports of goods and services as of a result, Afghanistan will experience stability in the exchange rate and in the domestic prices.

Mobile Application for Recognizing Colombian Currency with Audio Feedback for Visually Impaired People

Context: According to the census conducted by the National Department of Statistics (DANE) in 2018, 7.1% of the Colombian population has a visual disability. These people face conditions with limited autonomy, such as the handling of money. In this context, there is a need to create tools to enable the inclusion of visually impaired people in the financial sector, allowing them to make payments and withdrawals in a safe and reliable manner. Method: This work describes the development of a mobile application called CopReader. This application enables the recognition of coins and banknotes of Colombian currency without an Internet connection, by means of convolutional neural network models. CopReader was developed to be used by visually impaired people. It takes a video or photographs, analyzes the input data, estimates the currency value, and uses audio feedback to communicate the result. Results: To validate the functionality of CopReader, integration tests were performed. In addition, precision and recall tests were conducted, considering the YoloV5 and MobileNet architectures, obtaining 95 and 93% for the former model and 99% for the latter. Then, field tests were performed with visually impaired people, obtaining accuracy values of 96%. 90% of the users were satisfied with the application’s functionality. Conclusions: CopReader is a useful tool for recognizing Colombian currency, helping visually impaired people gain to autonomy in handling money.