Since the turn of the millennium, China opened up internationally both in terms of its current account (trade) and its capital account, even though the opening of the latter happened de facto, not de jure. With respect to China being Africa's largest trading partner and developing investor in...

Since the turn of the millennium, China opened up internationally both in terms of its current account (trade) and its capital account, even though the opening of the latter happened de facto, not de jure. With respect to China being Africa's largest trading partner and developing investor in...

This paper conducts an assessment of external price competitiveness for Mozambique. A variety of indicators suggest that Mozambique has recently lost external price competitiveness with respect to its major trading partners. Consistent with these indicators, an exchange rate assessment indicates...

The paper describes three empirical models commonly used to conduct exchange rate assessments and applies them to data for Australia and New Zealand. The baseline results using data and mediumterm projections available as of October 2008, suggest that the Australian and New Zealand dollars were...

The 2008 Article IV Consultation with Solomon Islands discusses an economic outlook that hinges critically on developing nonlogging sources of growth and exports to offset the expected decline in logging activity. The country remains beset with poor infrastructure, land ownership issues, a...

The paper examines the validity of the PPP for Nigeria real exchange rate with its 28 trading partner countries for the period spanning between 1960-2011. Using the Ng and Perron unit root test, the Lagrange multiplier (LM) unit root test with one structural break, and the LM unit root test with...

Episodes of increased global risk aversion, also known as risk-off episodes, have become more frequent and severe since 2007. During these episodes, currency markets exhibit recurrent patterns, as the Japanese yen, Swiss franc, and U.S. dollar appreciate against other G-10 and emerging market...

Upon entry into the European Union, countries become members of the Economic and Monetary Union (EMU), with a derogation from adopting the euro as their currency (that is, each country joining the EU commits to replace its national currency with the euro, but can choose when to request...

The paper finds that exchange rate flexibility in emerging market countries has increased over the past decade. This "learning to float" appears to have involved a strengthening of monetary and financial policy frameworks aimed at directly addressing the key vulnerabilities that give rise to the...