An Assessment of the Exchange Rate Pass-Through in Angola and Nigeria
Author | : Ana Lariau |
Publisher | : International Monetary Fund |
Total Pages | : 31 |
Release | : 2016-09-21 |
ISBN-10 | : 9781475538182 |
ISBN-13 | : 1475538189 |
Rating | : 4/5 (82 Downloads) |
Book excerpt: 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.