An Assessment of the Exchange Rate Pass-Through in Angola and Nigeria

32 Pages Posted: 16 Dec 2016

See all articles by Ana Lariau

Ana Lariau

International Monetary Fund (IMF)

Moataz El Said

International Monetary Fund (IMF) - African Department

Misa Takebe

University of Maryland - Department of Economics

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

Lariau, Ana and El Said, Moataz and Takebe, Misa, An Assessment of the Exchange Rate Pass-Through in Angola and Nigeria (September 2016). IMF Working Paper No. 16/191, Available at SSRN: https://ssrn.com/abstract=2882629

Ana Lariau (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Moataz El Said

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Misa Takebe

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
49
Abstract Views
521
PlumX Metrics