De Jure versus De Facto Exchange Rate Regimes in Sub-Saharan Africa

Slavov, Slavi

doi:10.1093/jae/ejt005

Cited by 10 publications

(9 citation statements)

References 7 publications

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“…Reserves have been accumulated as well as spent; this increase is particularly prominent during the latter part of the sample. The pattern is similar regardless of each country's choice of exchange rate regime or central bank objective; Slavov () notes that all five countries' central banks follow some sort of monetary targeting. The International Monetary Fund (IMF) (in the to its 2011 annual report) notes this as well and also classifies the three original EAC members as having de facto floating exchange rates.…”

Section: Resultsmentioning

confidence: 99%

Measuring Exchange Market Pressure and Its Contagion in the East African Community

Hegerty

2013

South African J Economics

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As the members of the East African Community seek to further integrate their economies, issues of compatibility arise. How interlinked are these countries' exchange markets, and which currencies are most likely to influence their neighbours? This study constructs monthly indices of exchange market pressure (EMP) for Burundi, Kenya, Rwanda, Tanzania and Uganda over the past decade. Two methods of constructing these indices are shown to exhibit large differences. Vector autoregressive approaches are then applied to the main EMP series and a set of global stock price proxies. Kenya, the dominant economy, is shown to have the largest effect on the region but is not itself affected by other regional currencies. Foreign stock price declines increase EMP for all countries except Tanzania, which is also the least integrated in terms of trade. This suggests that financial integration in the region is uneven -with implications for a successful common currency. JEL Classification: F36, F41

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Section: Resultsmentioning

confidence: 99%

Measuring Exchange Market Pressure and Its Contagion in the East African Community

Hegerty

2013

South African J Economics

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“…As recommended in the previous studies (see Slavov 2011), The Gambia needs to implement a more floating exchange rate regime rather than manage float and minimize tracking US dollar. It may consider pegging the dalasi towards basket of currencies.…”

Section: Conclusion and Policy Recommendationsmentioning

confidence: 97%

An Assessment of External Price Competitiveness for the Gambia

Cham

2016

AEF

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This paper assesses The Gambia's competitiveness. A variety of econometrics techniques and survey based indicators suggest that recently, The Gambia has lost its competitiveness compared to the comparator countries. The econometrics techniques employed shows that the dalasi appreciated by 3 to 6 percentage points in real terms. However, these rates are broadly inline with fundamentals and there is zero misalignment. Survey based indicators suggested that The Gambia lagged behind in access to credit, tax rates, and protect investors and national work ethnics. The Gambian authorities need to implement serious reform on tax policies; introduce legislation to promote public private partnership and revamp the public sector.

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“…The main reason for this seems to be the financial sector weaknesses. Slavov (2011) countries of Cameroon and Gabon (Thiam, 2011). The last group of countries are from Southern Africa, namely Lesotho, Namibia and Swaziland and they are pegged on par to the South African rand.…”

Section: African Countriesmentioning

confidence: 99%

“…Given that sub-Saharan Africa are exposed to frequent and large external shocks such as terms of trade or donour flows, one would expect a more, rather than less flexible exchange regime. According to Slavov (2011), numerous reasons for the existence of this "fear of floating" may provide some insight into this puzzling question. Depreciations are generally associated with financial distress and not, as conventional theory predicts, with export-led growth.…”

Section: African Countriesmentioning

confidence: 99%

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Choice of Exchange Rate Regime in a Selection of African Countries

Jordaan

2015

Journal of African Business

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An exchange rate regime has an important impact on macroeconomic policies within developing countries and therefore essential in macroeconomic policy formation. The main research question is to determine how the variety of determinants would influence the exchange rate regime choice for a selection of 19 African developing countries. A distinction is made between three groups of variables, namely economic fundamentals, economic stabilisation aspects and currency crises factors, all affecting a country's exchange regime choice. The probability of these determinants is then estimated to establish whether the selected countries would choose a fixed, an intermediate or a flexible exchange regime.

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De Jure versus De Facto Exchange Rate Regimes in Sub-Saharan Africa

Cited by 10 publications

References 7 publications

Measuring Exchange Market Pressure and Its Contagion in the East African Community

Measuring Exchange Market Pressure and Its Contagion in the East African Community

An Assessment of External Price Competitiveness for the Gambia

Choice of Exchange Rate Regime in a Selection of African Countries

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