External debts and real exchange rates in developing countries: evidence from Chad.

The objective of this work is to analyze the effect to external debts on the real exchange rate rate in Chad from 1975 to 2014. The generalized method of moment is used. Findings show that external debts positively and significantly affect the real exchange rate at 5% significant level. Moreover, debt servicing affects negatively and significantly real exchange rate. The main recommandation goes to Chadian government, it should adopt a budgetary policy, in such a way to reorient its debt towards economic sectors that is able to boost economic growth and reinforce that the strategies contribute re-equilibrate industrial activities.