Tanzania’s Equilibrium Real Exchange Rate

Tanzania's real effective exchange rate (REER) has depreciated sharply since end-2000, reversing the appreciation that took place in the second half of the 1990s. Single-country and panel data estimates, and the external sustainability approach, suggest that Tanzania's REER is currently mo...

Full description

Bibliographic Details
Main Author: Hobdari, Niko
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2008
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
LEADER 02292nmm a2200457 u 4500
001 EB000930102
003 EBX01000000000000000723698
005 00000000000000.0
007 cr|||||||||||||||||||||
008 150128 ||| eng
020 |a 9781451869972 
100 1 |a Hobdari, Niko 
245 0 0 |a Tanzania’s Equilibrium Real Exchange Rate  |c Niko Hobdari 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2008 
300 |a 23 pages 
651 4 |a Tanzania, United Republic of 
653 |a Investments, Foreign 
653 |a Finance 
653 |a Short-term Capital Movements 
653 |a Currency; Foreign exchange 
653 |a Current Account Adjustment 
653 |a Balance of payments 
653 |a Real effective exchange rates 
653 |a Long-term Capital Movements 
653 |a Trade: General 
653 |a Exports and Imports 
653 |a International economics 
653 |a Foreign Exchange 
653 |a Exports 
653 |a Exchange rates 
653 |a Foreign exchange 
653 |a Current account deficits 
653 |a Foreign direct investment 
653 |a International Investment 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
028 5 0 |a 10.5089/9781451869972.001 
856 4 0 |u https://elibrary.imf.org/view/journals/001/2008/138/001.2008.issue-138-en.xml?cid=21989-com-dsp-marc  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a Tanzania's real effective exchange rate (REER) has depreciated sharply since end-2000, reversing the appreciation that took place in the second half of the 1990s. Single-country and panel data estimates, and the external sustainability approach, suggest that Tanzania's REER is currently modestly undervalued relative to its estimated equilibrium level. Looking forward, a modest trend appreciation of the equilibrium REER is expected, consistent with continued high GDP growth and an expected recovery in terms of trade. In addition, capital inflows to Tanzania could be significantly higher than currently expected, to take advantage of Tanzania's natural resources and strong policy framework. If so, these inflows would contribute to an additional appreciation by as much as 20 percent of the equilibrium REER.