TY  - BOOK
AU  - Slavov,Slavi T.
TI  - De Jure Versus De Facto Exchange Rate Regimes in Sub-Saharan Africa
T2  - IMF Working Papers; Working Paper
SN  - 1462304230 :
SN  - 1018-5941
PY  - 2011///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - De Jure Versus De Facto
KW  - imf
KW  - Equation
KW  - Exchange Rate Regime
KW  - Exchange Rate
KW  - Exchange Rates
KW  - Fixed Versus Floating
KW  - Gambia, The
N2  - There are 22 countries in Sub-Saharan Africa (SSA) with floating exchange rate regimes, de jure. Some target the money supply or the inflation rate; others practice "managed floating." Statistical analysis on monthly data for the past decade reveals that in most cases these exchange rate regimes can be approximated surprisingly well by a soft peg to a basket dominated by the US dollar. The weight on the dollar appears to have fallen somewhat across the continent in the aftermath of the global financial crisis. Replicating the model with weekly data for The Gambia suggests that the focus on the dollar might be even more pronounced at higher data frequencies. While there might be strong arguments in favor of limiting exchange rate volatility in SSA countries, soft-pegging to the dollar does not appear to be the best fit for them, given the currency structure of their external trade and finance. The paper concludes by discussing some policy options for SSA countries with flexible exchange rates, in the context of an illustrative recent country case
UR  - http://elibrary.imf.org/view/IMF001/12129-9781462304233/12129-9781462304233/12129-9781462304233.xml
UR  - http://www.imfbookstore.org/IMFORG/9781462304233
ER  -