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

Subject Areas : International Journal of Finance, Accounting and Economics Studies

Abbas Hadi Gatea ¹ , hosein sharifi renani ^{2 *} , Abbas Ali Jumaah ³ , Bahar Hafezi ⁴

1 - Ph.D Student Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran,
2 - Associate Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran
3 - Professor of Economics, Basra University of Oil and Gas, Basra, Iraq
4 - Assistant Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran

Received: 2024-11-06 Accepted : 2025-01-18 Published : 2025-05-21

Keywords: Currency Rate, Credit, Monetary Policy, Transmission, Oil Exporting 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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