Estimating Egypt’s Equilibrium Real Exchange Rate

Author/Editor:

Joannes Mongardini

Publication Date:

January 1, 1998

Electronic Access:

Free Full Text (PDF file size is 1753 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

In light of the real appreciation of the Egyptian pound over the last six years and Egypt’s lackluster export growth, questions of external competitiveness and exchange rate policy have arisen. This paper sheds light on these issues by estimating empirically Egypt’s equilibrium real exchange rate, that is, the rate that is consistent with fundamentals. The results show that, while the real exchange rate was substantially overvalued before 1993, today it is only moderately above the equilibrium rate. Moreover, the analysis shows that the recent appreciation of the pound does not indicate a worsening misalignment.

Series:

Working Paper No. 98/5

Subject:

English

Publication Date:

January 1, 1998

ISBN/ISSN:

9781451842159/1018-5941

Stock No:

WPIEA0051998

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

41

Please address any questions about this title to publications@imf.org