An Assessment of External Price Competitiveness for Mozambique

Francis Vitek

No 09/165, IMF Working Papers from International Monetary Fund

Abstract: This paper conducts an assessment of external price competitiveness for Mozambique. A variety of indicators suggest that Mozambique has recently lost external price competitiveness with respect to its major trading partners. Consistent with these indicators, an exchange rate assessment indicates that the metical is overvalued by 26 to 41 percent in real effective terms. If sustained, an overvaluation of this magnitude has the potential to retard economic growth and jeopardize external stability, calling for an adjustment of monetary policy to gradually restore external price competitiveness.

Keywords: Competition; Exchange rate assessments; Exchange rates; External sector; Mozambique; Price structures; Real effective exchange rates; Terms of trade (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr
Date: 2009-08-07

Downloads: (external link)
http://www.imf.org/external/pubs/ft/wp/2009/wp09165.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:imf:imfwpa:09/165

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund
Address: International Monetary Fund, Washington, DC USA
Contact information at EDIRC.
Series data maintained by Christopher F. Baum ().