Economics at your fingertips  

Exchange Rate Dynamics and Monetary Integration in the EAC Countries

Simone Maciel Cuiabano () and Maxwell Opoku-Afari
Additional contact information
Simone Maciel Cuiabano: Toulouse School of Economics
Maxwell Opoku-Afari: Toulouse School of Economics

Atlantic Economic Journal, 2018, vol. 46, issue 3, 267-279

Abstract: Abstract A major challenge for most countries in Sub-Saharan Africa is the evaluation of the exchange rate. This is more so in the East African Community (EAC) where macroeconomic and exchange rate management has been particularly challenged by massive foreign aid inflows, which are partly a result of the Heavily Indebted Poor Countries initiative and other debt reliefs. In addition, improved macroeconomic management in the last decade attracted both short- and medium- to long-term inflows to the region, as foreign investors turn to developing and emerging economies for yield. In this paper, we estimate the fundamental equilibrium exchange rate model for all the countries in the EAC and assess the convergence of existing exchange rate regimes in the EAC. Our main contribution is that this exercise could serve as useful background for the ultimate decision of which exchange rate management framework will best fit the region during the transition period to monetary union.

Keywords: Real exchange rates; EAC countries; Cointegration; Exchange rate regimes; F31; F41; C32 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11293/PS2

Access Statistics for this article

Atlantic Economic Journal is currently edited by Kathleen S. Virgo

More articles in Atlantic Economic Journal from Springer, International Atlantic Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-11-06
Handle: RePEc:kap:atlecj:v:46:y:2018:i:3:d:10.1007_s11293-018-9586-6