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

Author/Editor: Ben Ltaifa, Nabil ; Kaendera, Stella ; Dixit, S. V. S.
Publication Date: December 15, 2009
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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.
Series: African Departmental Paper No. 09/03
Subject(s): East Africa | Exchange rate policy | Exchange rate stability | Sub-Saharan Africa | Kenya | Rwanda | Tanzania | Uganda | Ghana | Nigeria | Zambia

Author's Keyword(s): exchange rates | sub-Saharan Africa | East African Community | financial crisis
Publication Date: December 15, 2009
ISBN/ISSN: 978-1-58906-934-3 Format: A web quality merged PDF
Stock No: IFCERET Pages: 23
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