September 20, 2016/IMF Working Paper No. 16/191

Author/Editor: Ana Lariau; Moataz El-Said; Misa Takebe

This paper estimates the exchange rate pass-through to consumer price inflation in Angola and Nigeria, with particular emphasis on the changes of the pass-through over time.

Even though the two countries share smilar dependence on oil exports, this paper reveals different results.

For Angola, the long-run exchange rate pass-through to prices is high, though it has weakened in recent years reflecting the de-dollarization of the economy.

In Nigeria, there is no stable long-run relationship between the exchange rate and prices, and changes in the exchange rate do not have a significant pass-through effect on inflation.

However, the pass-through effect on core inflation is significant.

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