Macroeconomic Uncertainty and Romanian Analysts’ Forecasts accuracy: the Case of Foreign Exchange Rate Volatility

Author:Univ. Lecturer Mihaela IONAȘCU, Ph. D.

JEL: G32, M41

DOI:

Keywords:macroeconomic uncertainty, foreign exchange rate volatility, analysts’ forecasts accuracy, emergent markets

Abstract:
The paper seeks to explore the impact of macroeconomic uncertainty, such as foreign exchange rate volatility, on Romanian analysts’ forecasts accuracy. Recent empirical evidence shows that, especially in the case of emerging markets, macroeconomic uncertainty leads to a decrease in forecasts accuracy. Based on the population of Romanian companies listed on Bucharest Stock Exchange (BSE) for which analysts’ forecasts are available on Thomson Reuters I/B/E/S database between 2004 and 2010, this paper shows that, on the Emergent market of Romania, the exchange rate volatility has not significantly impacted forecasting errors.\r\n

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