Cover IMF Working Papers
An Assessment of the Exchange Rate Pass-Through in Angola and Nigeria
Author: Ana Lariau, Moataz El-Said, and Ms. Misa Takebe
Series:
IMF Working Papers
Volume/Issue:
Volume 2016: Issue 191
Language:
English
Publication Date:
20 Sep 2016
DOI:
https://doi.org/10.5089/9781475537529.001
ISBN:
9781475537529
ISSN:
1018-5941
Pages:
31
Keywords:
WP; price; pass-through; pass-through effect; Nigeria; Exchage rate path-through; monetary policy; inflation; Sub-Sahara Africa; oil-producing countries; exchange rate pass-through; pass-through elasticity; pass-through to inflation; interaction term; pass-through elasticity half; headline inflation; pass-through coefficient; long-run exchange rate pass-through to inflation; Import prices; Exchange rate pass-through; Consumer price indexes; Exchange rates; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.5 MB) Download Epub
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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund