Exchange rate and foreign interest rate linkages for Sub-Saharan Africa floaters

Exchange rate and foreign interest rate linkages for Sub-Saharan Africa floaters / prepared by Alun Thomas.

The paper considers the determinants of exchange rate movements among sub-Saharan countries that have flexible exchange rate regimes. The determinants are based on the law of one price and interest parity conditions. Results indicate that the exchange rates have responded significantly to changes in...

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Bibliographic Details
Main Author: Thomas, Alun H. (Alun Huw) (Author)
Corporate Author: International Monetary Fund. African Department
Format: eBook
Language:English
Published: [Place of publication not identified] : International Monetary Fund, 2012.
Series:IMF working paper ; WP/12/208.
Subjects:
Foreign exchange rates > Africa, Sub-Saharan.
Interest rates > Africa, Sub-Saharan.
BUSINESS & ECONOMICS > Finance.
Foreign exchange rates
Interest rates
Sub-Saharan Africa
Online Access:Click for online access
Description
Summary:The paper considers the determinants of exchange rate movements among sub-Saharan countries that have flexible exchange rate regimes. The determinants are based on the law of one price and interest parity conditions. Results indicate that the exchange rates have responded significantly to changes in the US Treasury bill rate and to the EMBI spread in recent years. The effects are more important for countries with open capital accounts. On the other hand the paper does not provide any support for the interest rate parity theory because domestic interest rates have no bearing on exchange rate movements.
Physical Description:1 online resource : illustrations
Bibliography:Includes bibliographical references.
ISBN:1475586477
9781475586473
1475505582
9781475505580
1475558260
9781475558265
1475516932
9781475516937
Language:English.

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