The Relationship Between Reserve Items and Exchange Rate in Malaysia: Evidence from Non-linear Model

The objectives of this study are first, to examine a nonlinear long-run relationship between exchange rate and reserve related item in Malaysia. Second, the causal rate, item, money supply, interest foreign direct investment, price Third, forecast Malaysia for next 50 years. To achieve our objective, we employed autoregressive distributed lag model (NARDL), Toda Yamamoto causality test variance decomposition. We utilize time series dataset from 1982 2018. find items significant have negative with rate. However, it limits only decrease will encourage Ringgit be depreciated. On other hand, expected influence more fluctuation cause FDI inflow