Exchange Rate Behaviour in the West Africa Monetary Zone: A GARCH Approach

Micheal Oshinloye, Olaronke Onanuga () and Abayomi Onanuga

MPRA Paper from University Library of Munich, Germany

Abstract: This study employs Generalized Autoregressive Conditional Heteroscedasticity (GARCH) to explore the level of exchange rate volatility in West African Monetary Zone for the period 1980-2014. Our empirical findings reveal that the Gambian dalasi experiences the least volatile official exchange rate while the Liberia dollar is the most volatile in the Zone. There is the need for the government of Gambia and Nigeria to control overshooting dynamics experienced by dalasi and naira. All the countries should exercise monetary and fiscal measures on time to put their exchange rate volatility under check.

Keywords: Exchange rate Volatility; GARCH; West African Monetary Zone (search for similar items in EconPapers)
JEL-codes: C10 F02 F31 (search for similar items in EconPapers)
Date: 2015-01-04
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Citations: View citations in EconPapers (1)

Published in Fountain Journal of Management and Social Sciences 1.4(2015): pp. 50-59

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:83324

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