monetary variables. We found that the exchange rates respond to the interest rate differential, consistent with the predictions … different, which shows that the exchange rate behaviour is non-linear (asymmetric). While the impact of the interest rate … differential in regime 1 and 2 leads to exchange rates appreciating although in regime 2 the results are insignificant, this occurs …

to investigate the effects of interest rate differential, exchange rate changes, and political stability on the entrance …). The study discovered an interest rate differential threshold value of 3.68 percent, indicating that an interest rate … differential high and over the predefined threshold promotes a favorable and considerable inflow of foreign capital into the nation …