Oil Palm Industry Economic Journal Vol. 10 (1) March 2010 p. 26-34

Effective Exchange Rate (EER) Effects on Exports of Oil Palm Products to Selected Markets

Ahmad Borhan A Nordin
Received:    Accepted:    Available Online:


The exchange rate is an important economic variable that influences the sale and purchase of agricultural commodities that are internationally and domestically traded. The study explores the relationship of an effective exchange rate for Malaysia and major importing countries on the export volume of various oil palm products. The result indicates evidence of a relationship between the Malaysian exchange rate and the export of crude palm oil, palm kernel expeller and palm-based finished products. Moreover, the relationship also exists for processed palm oil, processed palm kernel oil and oleochemical products to China, and for processed palm oil to India. However, there is no relationship between the exchange rate of European Union and the export of Malaysian oil palm products to that region.

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