An Assessment of the Exchange Rate Pass-Through in Angola and Nigeria
32 Pages Posted: 16 Dec 2016
Date Written: September 2016
Abstract
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 similar 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 pass-through effect on core inflation is significant.
Keywords: Exchange rate pass-through, Angola, Nigeria, Inflation, Oil prices, Consumer price indexes, Nominal effective exchange rate, Import prices, Cross country analysis, Exchage rate path-through, monetary policy, inflation, Sub-Sahara Africa, oil-producing countries
JEL Classification: E31, E52, F31, F42
Suggested Citation: Suggested Citation