Relationship between Exchange Rate Volatility and Interest Rates Evidence from Ghana

This paper examines the effect of interest rates on exchange rate volatilities in Ghana. It utilizes Quarterly Time Series dataset spanning 2000 Quarter 1 to 2017 2 and Autoregressive Distributed Lag model as well Vector Error Correction Model investigate long-run short-run relationships between variables. The results showed that model, volatility was seen be influenced by money supply, inflation, Central Bank’s policy rate, Ghana Stock Exchange composite index. However, found significantly its past values rate.