The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
This paper estimates the exchange rate pass-through to consumer price inflation in Angola
and Nigeria, with particular emphasis on the changes of the pass-through over time. Even
though the two countries share smilar dependence on oil exports, this paper reveals different
results. For Angola, the long-run exchange rate pass-through to prices is high, though it has
weakened in recent years reflecting the de-dollarization of the economy. In Nigeria, there is
no stable long-run relationship between the exchange rate and prices, and changes in the
exchange rate do not have a significant pass-through effect on inflation. However, the passthrough
effect on core inflation is significant.