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

Ana Lariau, Moataz El-Said and Misa Takebe

No 2016/191, IMF Working Papers from International Monetary Fund

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 smilar 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 passthrough effect on core inflation is significant.

Keywords: WP; price; pass-through; pass-through effect; Nigeria; Exchage rate path-through; monetary policy; inflation; Sub-Sahara Africa; oil-producing countries; exchange rate pass-through; pass-through elasticity; pass-through to inflation; interaction term; pass-through elasticity half; headline inflation; pass-through coefficient; long-run exchange rate pass-through to inflation; Import prices; Exchange rate pass-through; Consumer price indexes; Exchange rates; Global (search for similar items in EconPapers)
Pages: 31
Date: 2016-09-20
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Citations: View citations in EconPapers (7)

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