Previous page | New search |
The free AfricaBib App for Android is available here
Periodical article | Leiden University catalogue | WorldCat |
Title: | Botswana's crawling-peg exchange rate system: trends and variations in the pula exchange rate |
Author: | Motlaleng, G.R. |
Year: | 2009 |
Periodical: | Botswana Notes and Records (ISSN 0525-5090) |
Volume: | 41 |
Pages: | 104-111 |
Language: | English |
Notes: | biblio. refs., ills. |
Geographic terms: | Botswana Southern Africa |
Subjects: | exchange rates monetary policy Economics, Commerce Foreign exchange rates Foreign exchange--Mathematical models |
External link: | https://www.jstor.org/stable/23237929 |
Abstract: | This paper examines trends and variations in the Botswana pula exchange rate before and after the introduction of the crawling-peg exchange rate system. The variations in the exchange rate are computed for forty months before and after the introduction of this system, the first period ranging from January 2002 to April 2005, the second from May 2005 to August 2008. The survey indicates that previous devaluations, which were not accompanied by the crawling-peg exchange rate system, were short-lived. Since the adoption of the crawling-peg exchange rate system the pula has been depreciating. Additionally, the variance and the standard deviation reveal that variations in the nominal bilateral pula exchange rates have been minimal since the adoption of the crawling-peg exchange rate system. To corroborate the foregoing, both the variance and the standard deviation are computed for the nominal and real effective exchange rate of the pula against major currencies using quarterly data. The findings also suggest that the variations have been minimal after the crawling peg. This is shown by small variance and the standard deviation of both the nominal and real effective exchange rates. This implies stability in the pula exchange rate and positive results of the crawling-peg exchange rate policy regime. Bibliogr., note, sum. [Journal abstract] |