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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Impacts of Devaluation on Senegalese Households: Policy Implications
Authors:Kelly, ValerieISNI
Reardon, ThomasISNI
Diagana, Bocar
Periodical:Food Policy
Geographic term:Senegal
household budget
Economics and Trade
Agriculture, Natural Resources and the Environment
Development and Technology
External link:https://doi.org/10.1016/0306-9192(95)00027-5
Abstract:In January 1994 the franc CFA was devalued from 50 to 100 FCFA to the French franc. This article uses income and expenditure data from 1988-1991 to simulate the impact of the devaluation on real household income and identify the groups in Senegal that are most damaged. Urban households are hit hardest because they consume large quantities of imported rice and do not earn income from exportables. Surprisingly, one rural area is as negatively affected as the urban areas, one area experiences no change, and a third realizes only a small increase in real income. These small or negative effects occur because consumption of imported rice is high - which is still the case a year after devaluation - and income from the production of exportable peanuts is low. Relatively strong positive impacts were realized only in the two zones where peanuts account for a large share of total income. Attention should be given to policies to protect vulnerable groups and policies to stimulate investment by groups realizing short-run increases in income. Bibliogr., notes, ref., sum.