FACTORS INFLUENCING RATE OF RETURN OF GOVERNMENT SAVINGS BANK’S FOREIGN EXCHANGE SERVICES

Abstract

 This research aims to study factors influencing rate of return of Government Savings Bank’s foreign exchange services. There were three economic factors included in this study as follows : Interbank Rate, Inflation Rate and Current Account. Data used in the study were secondary data from January 2008 to December 2017, total of 120 months. The analysis methods include both descriptive and inferential statistics by using econometric software to compute the multiple regression equation (Ordinary Least Squares : OLS) to estimate the coefficients of the independent variable to the dependent variable.

The results found that Interbank Rate negatively correlates with rate of return of Government Savings Bank’s foreign exchange services at statistically significant at 0.05 level, Current Account positively correlates with  rate of return of Government Savings Bank’s foreign exchange services at statistically significant at 0.05 level. Whereas Inflation rate is not correlated with rate of return of the Government Savings Bank’s foreign exchange services at statistically significant at 0.05 level.