Exchange Rate Assessment in a Resource - Dependent Economy : The Case of Botswana.
Corinne. Deléchat
Bok Engelsk 2008 · Electronic books.
| Annen tittel | |
|---|---|
| Utgitt | International Monetary Fund
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| Omfang | 1 online resource (31 pages)
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| Utgave | 1st ed.
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| Opplysninger | Intro -- Contents -- I. Introduction -- II. External Sector Developments and Key Vulnerabilities -- A. Balance of payments -- B. Evolution of REER indices -- III. Equilibrium Exchange Rate Estimation -- A. Behavioral equilibrium exchange rate approach -- B. Estimation results -- IV. External Sustainability Approach -- V. Export Performance and Nonprice Competitiveness Indicators -- A. External sector outcomes -- B. Nonprice indicators of competitiveness -- VI. Summary and Conclusions -- References -- Appendix -- Tables -- 1. Assumptions -- 2. Comparative Costs of Infrastructure Services in the Late 1990s -- 3. Comparativeness Rankings -- Figures -- 1. Balance of Payments Trends -- 2. Real Effective Exchange Rate Indices -- 3. Determinants of the Real Effective Exchange Rate -- 4. Equilibrium Real Exchange Rate Estimation -- 5. External Sustainability Assessment -- 6. Export Performance Indicators -- 7. Governance Indicators -- Appendix Tables -- 1. Unit Root Tests -- 2. Test for Model Reduction -- 3. Cointegration Tests: Trace Test and Maximum Eigenvalue -- 4. Results of Cointegration Estimation -- 5. Residuals Tests -- Appendix Figures -- 1. Breakdownpoint Chow Tests -- 2. Equilibrium REER Estimation: Cointegration Residuals.. - The paper combines various methodologies to assessing the level of the exchange rate in Botswana, explicitly taking into account the implications of its dependency on diamond exports. Real exchange rate estimation indicates that, after a period of overvaluation, Botswana's real effective exchange rate is now broadly in line with economic fundamentals. The projected current account path is also consistent with external sustainability, defined to ensure sufficient savings of diamond wealth in order to maintain a stable import and consumption path through 2050. Sustaining consumption over the longer term will however require to address obstacles to non-diamond exports' competitiveness.
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| Emner | |
| Sjanger | |
| Dewey | |
| ISBN | 1451913982. - 9781451913989
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