![]() Current spot rates provide better forecasting results in predicting Future spot compared to the forward rate. Based on the sample period used, empirical evidence suggests that spot rates and forward rates are significant in predicting future spots for EUR, JPY and AUD currencies. The Stochastic and Chow Test models are selected and their use has been evaluated using quality and precise testing measures. The samples used are from Bank Indonesia for spot rates in January – March 2019 and future spot in April – June 2019, and from Jakarta Futures exchange for forward rates in January – March 2019. The variables used in this study are spot rates, forward rates and future spots. ![]() The research uses regression models for market-based forecasting methods. Empirical evidence suggests that spot rates provide better forecasting results compared to forward rates. Based on the research conducted by Chiang (1986) of the samples used, empirical evidence indicates spot rates and forward rates are significant as predictors of future spots. The forward rate is used in forecasting, as the exchange rate reflects the market estimate of the spot rate at the end of the forecasting period. The current spot rate can be used as forecasting, as the exchange rate reflects the market estimate of the spot rate in a short period of time. The process of making forecasting from market indicators, known as market-based forecasting, is usually developed based on spot rates and forward rates. It was found that this phenomenon was caused by the impact of the recent Covid-19 pandemic.Investors, multinational companies and governments require a rate forecasting to make informed decisions about the hedging of debts and receivables, funding and short-term investments, capital budgeting and long-term financing. ![]() While there are also a couple of industry sectors that actually experienced growth during this time, such as the information and communication sector as well as the health service and social activities sector. Especially in the manufacturing sector, construction sector, transportation sector, and accommodation sector. Based on the study that was conducted, In the year 2019 to 2020 almost all industry sectors in Indonesia experienced a decline on its GDP. ![]() This study utilizes the literature study method with the quantitative data that was collected through official online sources. This study was done with the goal to analyze Indonesia’s national income growth based on various industry sectors from the year 2016 to 2020 based on its GDP (Gross Domestic Product). Universitas Internasional Batam, Kota Batam, IndonesiaĬovid-19, GDP, Indonesia, Industry Sectors, National Income Abstract ![]()
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