An Assessment of the Exchange Rate Pass-Through in Angola and Nigeria
September 20, 2016
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Summary
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.
Subject: Consumer price indexes, Exchange rate pass-through, Exchange rates, Foreign exchange, Import prices, Inflation, Prices
Keywords: Consumer price indexes, Exchage rate path-through, exchange rate pass-through, Exchange rate pass-through, Exchange rates, Global, headline inflation, Import prices, inflation, interaction term, long-run exchange rate pass-through to inflation, monetary policy, Nigeria, oil-producing countries, pass-through, pass-through coefficient, pass-through effect, pass-through elasticity, pass-through elasticity half, pass-through to inflation, price, Sub-Sahara Africa, WP
Pages:
31
Volume:
2016
DOI:
Issue:
191
Series:
Working Paper No. 2016/191
Stock No:
WPIEA2016191
ISBN:
9781475537529
ISSN:
1018-5941
