Exchange Rate Liberalization in Selected Sub-Saharan African Countries Successes, Failures, and Lessons

By Nils Øyvind Mæhle, Haimanot Teferra, Armine Khachatryan

January 31, 2013

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Nils Øyvind Mæhle, Haimanot Teferra, and Armine Khachatryan. Exchange Rate Liberalization in Selected Sub-Saharan African Countries Successes, Failures, and Lessons, (USA: International Monetary Fund, 2013) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Many sub-Saharan African (SSA) countries liberalized their economies in the 1980s and early 1990s. This paper reviews the foreign exchange regime reforms in selected SSA, and their associated macroeconomic policies and economic performance during and after these reforms were undertaken. Before liberalization, most of the reviewed countries were characterized by extensive foreign exchange rationing, sizeable black market premiums, and declining per capita real income. Today, the countries that successfully reformed look markedly different. Rationing and parallel market spreads are a distant memory, and per capita income has increased sharply.

Subject: Currency markets, Exchange rate arrangements, Exchange rates, Financial markets, Foreign exchange, Inflation, Multiple currency practices, Prices

Keywords: Adjustable peg, Auction market, Country, Currency markets, Exchange rate, Exchange rate arrangements, Exchange rate depreciation, Exchange rate liberalization, Exchange rate regimes, Exchange rates, Government, Growth, Headline inflation, Inflation, Inflation rate, Managed float, Overvalued exchange rate, Per capita income, Proceeds, Reforms, Stabilization effort, Structural adjustment, Sub-Saharan Africa, U.S. dollar, U.S. dollar exchange rate, WP

Publication Details

Pages:

71
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2013/032
Stock No:

WPIEA2013032
ISBN:

9781557756695
ISSN:

1018-5941

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