• Febrio Kacaribu University of Indonesia
  • Syahda Sabrina University of Indonesia
  • Teuku Muhammad Riefky Hasan University of Indonesia
Keywords: Real exchange rate, Trade openness, Money supply shock, Panel data


This study examines the relationship between trade openness and exchange rate volatility. We use panel data of 52 countries and document trade openness has a negative and statistically significant effect on exchange rate volatility. The second explanatory variable considered in the model is money supply shock which is found to have a positive and statistically significant effect on exchange rate volatility. Our results survive battery of robustness checks.


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How to Cite
Kacaribu, F., Sabrina, S., & Hasan, T. M. R. (2021). DOES THE SERVICE TRADE OPENNESS MITIGATE REAL EXCHANGE RATE VOLATILITY?. Buletin Ekonomi Moneter Dan Perbankan, 24(2), 237 - 254.