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Real Exchange Rate Volatility: Is Sub-Saharan Africa Different?


  • Michael Bleaney

    (School of Economics, University of Nottingham)

  • Manuela Francisco

    (World Bank, Washington DC, and NIPE, University of Minho)


Real effective exchange rate volatility is examined for 90 countries using monthly data for the period January 1990 to June 2006. Volatility increases with country size and the inflation rate, and is greater in developing countries. Volatility is particularly high in sub-Saharan Africa after controlling for these factors. Exchange rate regime effects, as identified by the IMF’s current de facto methodology, are significant. Free floats have higher volatility than other regimes, and crawling pegs/bands appear to be a form of real exchange rate targeting. The results are robust to alternative volatility measures.

Suggested Citation

  • Michael Bleaney & Manuela Francisco, 2016. "Real Exchange Rate Volatility: Is Sub-Saharan Africa Different?," NIPE Working Papers 3/2016, NIPE - Universidade do Minho.
  • Handle: RePEc:nip:nipewp:3/2016

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    Exchange rate regimes; inflation; volatility;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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