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dc.contributor.authorOkot, Anjelo
dc.contributor.authorEuropean Investment Bank
dc.date.accessioned2022-11-18T05:31:12Z
dc.date.available2022-11-18T05:31:12Z
dc.date.issued2022
dc.identifier.urihttps://library.oapen.org/handle/20.500.12657/59286
dc.description.abstract"The last three decades have witnessed substantial changes in the foreign exchange markets in Africa, with moves towards liberalisation and flexible exchange rate regimes. This has increased the influence of financial market conditions and heightened the risk of exchange rate volatility and large and sudden exchange rate movements. This paper investigates the determinants of nominal exchange rates, their volatility, and crash risk in African lower and lower-middle income countries. It combines macro-panel estimations for 15 such countries with insights from interviews with market participants. It shows the importance of these countries' distinctive export structure, concentrated in a few agricultural and mineral-based commodities, as well as recent financial integration, for exchange rate determination. It finds that terms of trade, export concentration, and export prices have a significant impact on the exchange rate level and volatility. By contrast, financial factors including the interest rate differential, international market conditions, and short-term financial flows, influence the likelihood of sudden and large exchange rate movements."
dc.languageEnglish
dc.rights.uriCopyright held by content provider
dc.subject.classificationthema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industryen_US
dc.subject.otherBusiness & Economics
dc.subject.otherFinance
dc.subject.otherFinancial Engineering
dc.titleEIB Working Paper 2022/12 - Determinants of the exchange rate, its volatility and currency crash risk in Africa’s low and lower middle-income countries
dc.typebook
oapen.identifier.doi10.2867/79307
oapen.relation.isPublishedBy66479d04-7b84-49c0-9a4d-db552a3ecc71
oapen.relation.isFundedByb818ba9d-2dd9-4fd7-a364-7f305aef7ee9
oapen.relation.isbn9789286153716
oapen.collectionKnowledge Unlatched (KU)
oapen.imprintEuropean Investment Bank
oapen.identifierhttps://openresearchlibrary.org/viewer/af0e6fb7-8217-4b36-a18f-5787b611f052
oapen.identifier.isbn9789286153716


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