Brexit referendum: impact on the exchange rate (Pound/INR) Online publication date: Mon, 21-Dec-2020
by Neetu Chadha; Divya Jain
International Journal of Business Competition and Growth (IJBCG), Vol. 7, No. 2, 2020
Abstract: Present study is an attempt to empirically analyse the exchange rate volatility of Pound/INR with respect to Brexit referendum and its policy implications on Indian economy. The exchange rate data of Pound/INR collected over a span of six years, split into two halves: pre-Brexit-period (1/7/2013 to 23/06/2016) and post-Brexit-period (24/06/2016 to 31/06/2019). The data series were tested empirically using GARCH (1,1) model which represented that beta coefficient value is greater in post-Brexit period indicating that volatility in that period is persistent and that takes long time to vanish and the alpha coefficient is higher in case of pre-Brexit period that means the volatility reaction to market movements are quite intense than the post-Brexit period. Vote in favour of Brexit on 23rd June 2016 started the firing from gun on pounds downward trend which was further followed by initial sharp drop and various slumps and persistent decline. This left the pound sterling to Indian rupee exchange rate 8% lower than pre-referendum levels.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Competition and Growth (IJBCG):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook