The impact of the strong Euro on the real effective exchange rates of the two Francophone African CFA zones /
Zafar, Ali.
The impact of the strong Euro on the real effective exchange rates of the two Francophone African CFA zones / Ali Zafar. - Washington, D. C : World Bank, 2005. - 32p : ill. ; 27 cm. - Policy research working papers ; no. 3751 .
Also available online. "The author estimates the degree of misalignment of the CFA franc since the introduction of the Euro in 1999. Using a relative purchasing power parity-based methodology, he develops a monthly panel time series data set for both the Economic and Monetary Community of Central Africa (CEMAC) zone and the West African Economic and Monetary Union (UEMOA)zone to compute a trade-weighted real effective exchange rate indexed series from January 1999 to December 2004. The author's main finding is that the real effective exchange rate appreciated by close to 8 percent in UEMOA and 7 percent in CEMAC, influenced by volatility in the euro-dollar bilateral exchange rate and conservative monetary policies in the two zones, resulting in a partial loss of competitiveness in export markets. The lower appreciation in Central Africa can be explained by lower inflation in CEMAC than in UEMOA and by th
Includes bibliographical references.
Open access.
Foreign exchange--Africa, Sub-Saharan.
Euro.
The impact of the strong Euro on the real effective exchange rates of the two Francophone African CFA zones / Ali Zafar. - Washington, D. C : World Bank, 2005. - 32p : ill. ; 27 cm. - Policy research working papers ; no. 3751 .
Also available online. "The author estimates the degree of misalignment of the CFA franc since the introduction of the Euro in 1999. Using a relative purchasing power parity-based methodology, he develops a monthly panel time series data set for both the Economic and Monetary Community of Central Africa (CEMAC) zone and the West African Economic and Monetary Union (UEMOA)zone to compute a trade-weighted real effective exchange rate indexed series from January 1999 to December 2004. The author's main finding is that the real effective exchange rate appreciated by close to 8 percent in UEMOA and 7 percent in CEMAC, influenced by volatility in the euro-dollar bilateral exchange rate and conservative monetary policies in the two zones, resulting in a partial loss of competitiveness in export markets. The lower appreciation in Central Africa can be explained by lower inflation in CEMAC than in UEMOA and by th
Includes bibliographical references.
Open access.
Foreign exchange--Africa, Sub-Saharan.
Euro.