Departmental Papers

Impact of the Global Financial Crisis on Exchange Rates and Policies in Sub-Saharan Africa

By Stella Kaendera, S. V. S. Dixit, Nabil Ben Ltaifa

December 15, 2009

Preview Citation

Format: Chicago

Stella Kaendera, S. V. S. Dixit, and Nabil Ben Ltaifa. Impact of the Global Financial Crisis on Exchange Rates and Policies in Sub-Saharan Africa, (USA: International Monetary Fund, 2009) accessed January 13, 2025

Summary

This paper studies the evolution of the exchange rates of sub-Saharan African currencies in the context of the global financial crisis. In particular, it analyzes the reasons behind the differences in the magnitude and volatility of the exchange rates among countries. To this end, it takes a sample of seven countries, four members of the East African Community (EAC) (Kenya, Rwanda, Tanzania, and Uganda), and three others, which experienced large exchange rate losses at the onset of the crisis: Ghana, Nigeria, and Zambia. First, it analyzes the movements of the exchange rates with respect to the U.S. dollar and two other major currencies. Second, it tries to link the magnitude of their movements to key factors, relating to the external environment and the countries’ internal policies.

Subject: Currencies, Currency markets, Depreciation, Exchange rates, Financial markets, Foreign exchange, Money, National accounts, Real effective exchange rates

Keywords: British pound, Central bank, Currencies, Currency, Currency markets, Depreciation, DP, DPPP, Exchange rate, Exchange rate development, Exchange rate loss, Exchange rate volatility, Exchange rates, Exchange regime, Global, Managed currency, Real effective exchange rates, Sub-Saharan Africa, Tanzanian currency, Tanzanian shilling, Terms of trade

Publication Details

  • Pages:

    25

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Departmental Paper No. 2009/006

  • Stock No:

    IFCEREA

  • ISBN:

    9781462389889

  • ISSN:

    2616-5333

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