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February 19, 20260 citationsOpen Access

Analysis of Currency rate Channel and Credit Channel in Monetary Policy Transmission: A Case Study of Selected Oil Exporting Countries

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AAAbbas Hadi Gatea AlzawamilHRHosein Sharifi RenaniAJAbbas Ali Jumaah

Key Points

  • The main aim is to analyze the currency rate and credit channels in the context of monetary policy transmission.
  • Focused on 15 OPEC member countries from 2010 to 2023
  • Utilized the Vector Autoregressive (VAR) model for data analysis
  • Examined the impact on gross domestic product (GDP)
  • Currency rates and bank loans are key transmission channels of monetary policy
  • Both channels significantly influence GDP in the selected countries

Abstract

Purpose: Monetary policies are among the most important economic policies, through which the country's monetary authorities try to control the supply of money in a coordinated manner with other economic policies in a way that fits the goals of that country and promotes the country's gross domestic product. For this purpose, monetary policy transmission channels are important. In this regard, the main purpose of this article is analyze the currency rate channel and the credit channel in monetary policy transmission. Design/methodology/approach: The statistical population of the research is the oil exporting countries, in the end, 15 OPEC member countries including Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela which have oil revenues and available data, has been selected as the final sample of the research. The period of the research is from 2010 to 2023 and the data analysis method is based on the Vector Autoregressive model (VAR). Findings : The findings of the research showed that in the period of reviewing the selected countries, currency rates and bank loans are considered as the channels of influence and transmissions of monetary policy on the gross domestic product (GDP). Original/Value (if applicable): Based on this, it is concluded that in the investigation of monetary policy transmission channels and their effect on GDP, the two channels of currency rate and bank loans should be given more attention,

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Cite This Study

Alzawamil et al. (2024) studied this question.

synapsesocial.com/papers/6996a7b5ecb39a600b3eda11https://doi.org/10.82395/ijfaes.2025.1189588
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