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Forecasting the Southeast Asian Currencies against the British Pound Sterling Using Probability Distributions

Authors

Ahmad Abubakar Suleiman Aliko Dangote University of Science and Technology

DOI:

https://doi.org/10.63017/jdsi.v1i1.5

Abstract

The current study aimed to identify the most suitable probability distribution function (pdf) for modeling the exchange rates of three countries. Financial data is essential to many people and to the management of a country. Volatility in financial data influences individual and the country's economic growth. This volatility in the exchange rates between the Malaysian Ringgit (MYR), Singapore Dollar (SGD), and Thailand Thai Baht (THB) against British Pound Sterling (GBP) is found to be very high which make it difficult to model and forecast. This is what has necessitated the development of an accurate and reliable approach for assessing and reducing the risks of trading in any of these currencies.

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The fitted pdfs on the histogram of GBP/THB exchange rate along with their CDF (c), Q-Q (b), and probability plots

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Published

2023-08-28 — Updated on 2023-12-19

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How to Cite

Suleiman, A. A. (2023). Forecasting the Southeast Asian Currencies against the British Pound Sterling Using Probability Distributions. Data Science Insights, 1(1), 31–51. https://doi.org/10.63017/jdsi.v1i1.5 (Original work published August 28, 2023)