The Impact of Electronic Clearing on Currency in Circulation in Mozambique

Samuel Garicai Arone

doi:doi:10.11648/j.ajtas.20200905.14

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The Impact of Electronic Clearing on Currency in Circulation in Mozambique

Samuel Garicai Arone

Published in American Journal of Theoretical and Applied Statistics (Volume 9, Issue 5)

Received: 21 August 2020 Accepted: 8 September 2020 Published: 21 September 2020

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Abstract

Similar to the experience of other countries, payment habits in Mozambique have been changing. Indeed, innovations in transaction technology such as electronic payments have revolutionized the payment landscape in the economies. Although, in general, cash has remained the dominant payment instrument, it is important to analyze the extent to which its course has been influenced by several alternative payment instruments used in the intermediation of commercial transactions. Among the alternative payment instruments, this paper examines the impact of some of the components of interbank electronic clearing subsystem, namely interbank cheques clearing and interbank electronic funds transfer, on currency in circulation in Mozambique, using monthly data between 2010 and 2019. Preliminary analysis of the data revealed a decreasing trend in interbank cheques clearing against an increase in interbank electronic funds transfer, which is in line with the trends registered in some countries referenced in this paper. A Vector Error Correction Model was used based on the cointegration behavior of the variables used. The empirical results suggested that, interbank cheques clearing substitute currency while interbank electronic funds transfer complement it. Thus, this allows us to conclude that, generally, the beneficiaries of interbank electronic funds transfer convert funds ordered into cash, whereas the beneficiaries of cheques transacted via interbank clearing prefer to keep funds into deposits. However, the statistical significance of the latter was tenuous.

Published in	American Journal of Theoretical and Applied Statistics (Volume 9, Issue 5)
DOI	10.11648/j.ajtas.20200905.14
Page(s)	210-218
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Cointegration, Cheques Clearing, Currency in Circulation, Interbank Funds Transfer, Vector Error Correction Model

References

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[2]	Assembleia da República. (2008). Lei nº 2/2008, of 27^th February. Maputo.
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[4]	D. Hendry. (1995). Dynamic Econometrics. Oxford University Press.
[5]	D. Perkins. (2019). Long Live Cash. The Potential Decline of Cash Usage and Related Implications. Congress Research Service. Washington.
[6]	Digital Check Corp. (2019). The Reappering Cheque: Why Cheuqe Usage is on the Rise in Some Developing Countries. USA.
[7]	E. Hjalmarsson and P. Österholm. (2007). Testing for cointegration using the Johansen methodology when variables are near-integrated. IMF Working Paper 07/141. (Washington: International Monetary Fund).
[8]	E. Tellez. (2017). The Ongoing Decline of the Cheque System. Reserve Bank of Australia. Quarter Bulletin/June, pp. 57-65.
[9]	F. Hayashi. (2000). Econometrics. Princeton University Press.
[10]	H. Lütkepohl. (2005). New Introduction to Multiple Time Series Analysis. Springer. New York.
[11]	https://www.bcv.cv/ (consulted on 10/07/2020).
[12]	https://www.bna.ao/ (consulted on 10/07/2020).
[13]	https://www.boz.zm/ (consulted on 10/07/2020).
[14]	J. Hamilton. (1994). Time Series Analysis. Princeton University Press.
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[16]	R. Davidson and J. MacKinnon. (1993). Estimation and Inference in Econometrics. Oxford: Oxford University Press.
[17]	S. Durlauf and L. Blume. (2010). Macroeconometrics and Time Series. Rhe New Palgrave Economic Collections. Palgrave Macmillan. United Kingdom.
[18]	T. Kokola. (2010). Payments, Securities and Derivatives, and the Role of the Eurosystem. European Central Bank.
[19]	V. Silva, E. Ramalho and C. Vieira. (2016). The Use of Cheques in the European Union: a Cross-Country Analysis. University of Evora. Portugal.
[20]	W. Wei. (2006). Time Series Analysis: Univariate and Multivariate Methods. 2nd Ed, Addison-Wesley.
[21]	www.bancomoc.mz (consulted on 10/07/2020).

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Samuel Garicai Arone. (2020). The Impact of Electronic Clearing on Currency in Circulation in Mozambique. American Journal of Theoretical and Applied Statistics, 9(5), 210-218. https://doi.org/10.11648/j.ajtas.20200905.14

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Samuel Garicai Arone. The Impact of Electronic Clearing on Currency in Circulation in Mozambique. Am. J. Theor. Appl. Stat. 2020, 9(5), 210-218. doi: 10.11648/j.ajtas.20200905.14

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AMA Style

Samuel Garicai Arone. The Impact of Electronic Clearing on Currency in Circulation in Mozambique. Am J Theor Appl Stat. 2020;9(5):210-218. doi: 10.11648/j.ajtas.20200905.14

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@article{10.11648/j.ajtas.20200905.14,
  author = {Samuel Garicai Arone},
  title = {The Impact of Electronic Clearing on Currency in Circulation in Mozambique},
  journal = {American Journal of Theoretical and Applied Statistics},
  volume = {9},
  number = {5},
  pages = {210-218},
  doi = {10.11648/j.ajtas.20200905.14},
  url = {https://doi.org/10.11648/j.ajtas.20200905.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20200905.14},
  abstract = {Similar to the experience of other countries, payment habits in Mozambique have been changing. Indeed, innovations in transaction technology such as electronic payments have revolutionized the payment landscape in the economies. Although, in general, cash has remained the dominant payment instrument, it is important to analyze the extent to which its course has been influenced by several alternative payment instruments used in the intermediation of commercial transactions. Among the alternative payment instruments, this paper examines the impact of some of the components of interbank electronic clearing subsystem, namely interbank cheques clearing and interbank electronic funds transfer, on currency in circulation in Mozambique, using monthly data between 2010 and 2019. Preliminary analysis of the data revealed a decreasing trend in interbank cheques clearing against an increase in interbank electronic funds transfer, which is in line with the trends registered in some countries referenced in this paper. A Vector Error Correction Model was used based on the cointegration behavior of the variables used. The empirical results suggested that, interbank cheques clearing substitute currency while interbank electronic funds transfer complement it. Thus, this allows us to conclude that, generally, the beneficiaries of interbank electronic funds transfer convert funds ordered into cash, whereas the beneficiaries of cheques transacted via interbank clearing prefer to keep funds into deposits. However, the statistical significance of the latter was tenuous.},
 year = {2020}
}

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TY  - JOUR
T1  - The Impact of Electronic Clearing on Currency in Circulation in Mozambique
AU  - Samuel Garicai Arone
Y1  - 2020/09/21
PY  - 2020
N1  - https://doi.org/10.11648/j.ajtas.20200905.14
DO  - 10.11648/j.ajtas.20200905.14
T2  - American Journal of Theoretical and Applied Statistics
JF  - American Journal of Theoretical and Applied Statistics
JO  - American Journal of Theoretical and Applied Statistics
SP  - 210
EP  - 218
PB  - Science Publishing Group
SN  - 2326-9006
UR  - https://doi.org/10.11648/j.ajtas.20200905.14
AB  - Similar to the experience of other countries, payment habits in Mozambique have been changing. Indeed, innovations in transaction technology such as electronic payments have revolutionized the payment landscape in the economies. Although, in general, cash has remained the dominant payment instrument, it is important to analyze the extent to which its course has been influenced by several alternative payment instruments used in the intermediation of commercial transactions. Among the alternative payment instruments, this paper examines the impact of some of the components of interbank electronic clearing subsystem, namely interbank cheques clearing and interbank electronic funds transfer, on currency in circulation in Mozambique, using monthly data between 2010 and 2019. Preliminary analysis of the data revealed a decreasing trend in interbank cheques clearing against an increase in interbank electronic funds transfer, which is in line with the trends registered in some countries referenced in this paper. A Vector Error Correction Model was used based on the cointegration behavior of the variables used. The empirical results suggested that, interbank cheques clearing substitute currency while interbank electronic funds transfer complement it. Thus, this allows us to conclude that, generally, the beneficiaries of interbank electronic funds transfer convert funds ordered into cash, whereas the beneficiaries of cheques transacted via interbank clearing prefer to keep funds into deposits. However, the statistical significance of the latter was tenuous.
VL  - 9
IS  - 5
ER  -

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Author Information

Samuel Garicai Arone

Department of Sciences and Technology, Open University, Lisbon, Portugal

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APA Style

Samuel Garicai Arone. (2020). The Impact of Electronic Clearing on Currency in Circulation in Mozambique. American Journal of Theoretical and Applied Statistics, 9(5), 210-218. https://doi.org/10.11648/j.ajtas.20200905.14

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ACS Style

Samuel Garicai Arone. The Impact of Electronic Clearing on Currency in Circulation in Mozambique. Am. J. Theor. Appl. Stat. 2020, 9(5), 210-218. doi: 10.11648/j.ajtas.20200905.14

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AMA Style

Samuel Garicai Arone. The Impact of Electronic Clearing on Currency in Circulation in Mozambique. Am J Theor Appl Stat. 2020;9(5):210-218. doi: 10.11648/j.ajtas.20200905.14

Copy | Download

@article{10.11648/j.ajtas.20200905.14,
  author = {Samuel Garicai Arone},
  title = {The Impact of Electronic Clearing on Currency in Circulation in Mozambique},
  journal = {American Journal of Theoretical and Applied Statistics},
  volume = {9},
  number = {5},
  pages = {210-218},
  doi = {10.11648/j.ajtas.20200905.14},
  url = {https://doi.org/10.11648/j.ajtas.20200905.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtas.20200905.14},
  abstract = {Similar to the experience of other countries, payment habits in Mozambique have been changing. Indeed, innovations in transaction technology such as electronic payments have revolutionized the payment landscape in the economies. Although, in general, cash has remained the dominant payment instrument, it is important to analyze the extent to which its course has been influenced by several alternative payment instruments used in the intermediation of commercial transactions. Among the alternative payment instruments, this paper examines the impact of some of the components of interbank electronic clearing subsystem, namely interbank cheques clearing and interbank electronic funds transfer, on currency in circulation in Mozambique, using monthly data between 2010 and 2019. Preliminary analysis of the data revealed a decreasing trend in interbank cheques clearing against an increase in interbank electronic funds transfer, which is in line with the trends registered in some countries referenced in this paper. A Vector Error Correction Model was used based on the cointegration behavior of the variables used. The empirical results suggested that, interbank cheques clearing substitute currency while interbank electronic funds transfer complement it. Thus, this allows us to conclude that, generally, the beneficiaries of interbank electronic funds transfer convert funds ordered into cash, whereas the beneficiaries of cheques transacted via interbank clearing prefer to keep funds into deposits. However, the statistical significance of the latter was tenuous.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Electronic Clearing on Currency in Circulation in Mozambique
AU  - Samuel Garicai Arone
Y1  - 2020/09/21
PY  - 2020
N1  - https://doi.org/10.11648/j.ajtas.20200905.14
DO  - 10.11648/j.ajtas.20200905.14
T2  - American Journal of Theoretical and Applied Statistics
JF  - American Journal of Theoretical and Applied Statistics
JO  - American Journal of Theoretical and Applied Statistics
SP  - 210
EP  - 218
PB  - Science Publishing Group
SN  - 2326-9006
UR  - https://doi.org/10.11648/j.ajtas.20200905.14
AB  - Similar to the experience of other countries, payment habits in Mozambique have been changing. Indeed, innovations in transaction technology such as electronic payments have revolutionized the payment landscape in the economies. Although, in general, cash has remained the dominant payment instrument, it is important to analyze the extent to which its course has been influenced by several alternative payment instruments used in the intermediation of commercial transactions. Among the alternative payment instruments, this paper examines the impact of some of the components of interbank electronic clearing subsystem, namely interbank cheques clearing and interbank electronic funds transfer, on currency in circulation in Mozambique, using monthly data between 2010 and 2019. Preliminary analysis of the data revealed a decreasing trend in interbank cheques clearing against an increase in interbank electronic funds transfer, which is in line with the trends registered in some countries referenced in this paper. A Vector Error Correction Model was used based on the cointegration behavior of the variables used. The empirical results suggested that, interbank cheques clearing substitute currency while interbank electronic funds transfer complement it. Thus, this allows us to conclude that, generally, the beneficiaries of interbank electronic funds transfer convert funds ordered into cash, whereas the beneficiaries of cheques transacted via interbank clearing prefer to keep funds into deposits. However, the statistical significance of the latter was tenuous.
VL  - 9
IS  - 5
ER  -

Copy | Download