Exchange Rate Assessment in a Resource - Dependent Economy: The Case of Botswana

WPIEA2008083 Image
Price:  $18.00

Author/Editor: Corinne Deléchat, Matthew Gaertner
Release Date: © March, 2008
ISBN : 978-1-45186-944-6
Stock #: WPIEA2008083
English
Stock Status: Available

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Description

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.

Taxonomy

Balance of trade , Competition , Exports , International trade




More publications in this series: Working Papers


More publications by: Corinne Deléchat ; Matthew Gaertner