Crude Oil Market Stocks and Dynamics of Exchange Rate Pass through Exporting African Countries

This paper investigated crude oil market shocks and dynamics of exchange rate pass through exporting Africa countries. Panel data of ten oil producing and exporting countries were collected from the world bank database and statistica.org websites. The data spanned between the period of 2011 2020. The variable of crude oil prices and exchange rate dynamics were tested for stationarity and equilibrium test using unit root and co integration techniques. Standard ARDL model estimation was used to estimate the short and long run effects of crude oil market shocks and dynamics of exchange rate pass through exporting Africa countries. The outcome showed that exchange rate EXCR and the volatility of the crude oil price volatility COP of the ten Sub Sahara crude oil producing Africa countries has short run effects and the long run relationship indicated the speed of adjustments of 0.8473 with statistical significance at 5 level. The model of ARDL is better at ARDL 2,2 for estimation. In addition, log exchange rates DEXCR 1 , and log of oil price volatility DCOP " 1 have positive impact on oil price volatility COP. Log of exchange rates DEXCR at raw value that is at level affected crude oil prices COP negatively. The paper concluded that exchange rates of crude oil exporting countries in Sub Sahara Africa countries reveals that log exchange rates DEXCR 1 , and log of oil price volatility DCOP 1 have positive impact on oil price volatility COP. Log of exchange rates DEXCR at raw value that is at level affected crude oil prices COP negatively. Change in log exchange rates DEXCR 1 , and log of oil price volatility DCOP 1 account for positive crude oil prices COP by 44.46 and 33.46 across the ten oil exporting African countries. Change in Log of exchange rates DEXCR result in 32.95 decrease in crude oil prices COP of crude oil exporting countries Africa. Therefore, recommended that, monetary policy on exchange rate must be designed by the oil producing countries in Africa to enable better microeconomic performance for sustainable growth and development. Diversification of economy to tame the level of dependence on for ex to ensure development in Africa. Amedu Mishau | Abdulazeez Aruna "Crude Oil Market Stocks and Dynamics of Exchange Rate Pass through Exporting African Countries" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-7 , December 2022, URL: https://www.ijtsrd.com/papers/ijtsrd52337.pdf Paper URL: https://www.ijtsrd.com/management/marketing/52337/crude-oil-market-stocks-and-dynamics-of-exchange-rate-pass-through-exporting-african-countries/amedu-mishau