monthly inflation data from NBS (the idea here is to examine the correlation between shilling depreciation and inflation). Data span from first quarter of January 2006 to similar quarter in 2012. This is seen as the most fluctuated period when the shilling wobbles more than other period since independence in December 1961, to hit the lowest level of 1,860/- against US dollar quoted by commercial banks. In total this is almost six years period and to have the required sample size, the study will take weekly exchange rates - from the first week of January 2006 to the last week of March 2012. This will gives us 314 weekly samples of exchange rates and amount the BoT used to intervene into the market. 4.3 Hypothesis Based on theoretical and empirical literature and the view of the objective and questions the research raised the following hypothesis, which are tested to determine the effectiveness of the intervention on the IFME. The questions are:- IFEM intervention has no significant impact on shilling directions - to either direction BoT net sales of foreign currency at IFEM does not cause significantly fluctuation on shilling exchange rate Net trading of the commercial banks at IFEM does not cause significant impact on shilling exchange rate The fluctuations of shilling exchange rate are not a significant result of neither BoT net nor commercial banks at the IFEM
monthly inflation data from NBS (the idea here is to examine the correlation between shilling depreciation and inflation). Data span from first quarter of January 2006 to similar quarter in 2012. This is seen as the most fluctuated period when the shilling wobbles more than other period since independence in December 1961, to hit the lowest level of 1,860/- against US dollar quoted by commercial banks. In total this is almost six years period and to have the required sample size, the study will take weekly exchange rates - from the first week of January 2006 to the last week of March 2012. This will gives us 314 weekly samples of exchange rates and amount the BoT used to intervene into the market. 4.3 Hypothesis Based on theoretical and empirical literature and the view of the objective and questions the research raised the following hypothesis, which are tested to determine the effectiveness of the intervention on the IFME. The questions are:- IFEM intervention has no significant impact on shilling directions - to either direction BoT net sales of foreign currency at IFEM does not cause significantly fluctuation on shilling exchange rate Net trading of the commercial banks at IFEM does not cause significant impact on shilling exchange rate The fluctuations of shilling exchange rate are not a significant result of neither BoT net nor commercial banks at the IFEM
DISSERTATION_%2D_ELINAZA.docx