Exchange rate pass-through to domestic prices in Nigeria: an empirical investigation

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dc.contributor.authorZubair, Abdulrasheed
dc.contributor.authorOkorie, George
dc.contributor.authorSanusi, Aliyu A.
dc.date.accessioned2018-10-15T07:58:37Z
dc.date.available2018-10-15T07:58:37Z
dc.date.issued2013-03
dc.description.abstractThis paper uses the impulse response from an estimated structural autoregressive model of the inflation process to estimate the dynamic exchange rate pass-through to consumer prices for Nigeria, using quarterly data for the period 1986-20I0. The results suggest that the exchange rate pass-through is incomplete, low and fairly slow. On impact, for instance, the elasticity of inflation to exchange rate changes is about 0.02, and it takes about eight quarters to reach its full-impact of only 0.26. We argue that given the large share of imports in Nigeria's consumption basket, this surprisingly low pass-through indicates that importers practice the so-called pricing-to-market strategy of price setting for the Nigerian market. The variance decomposition analysis suggests that money supply has contributed more to Nigeria's inflation process relative to the exchange rate. This suggests that policy makers must beep up efforts at achieving monetary stability.en_US
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dc.description.provenanceMade available in DSpace on 2018-10-15T07:58:37Z (GMT). No. of bitstreams: 1 Exchange Role Pass-Through ln Domestic Prices in Nigeria An Empirical investigation.pdf: 2588774 bytes, checksum: cc5a86185a15c34c0e2bb02cafc7ecf5 (MD5) Previous issue date: 2013-03en
dc.description.sponsorshipCentral Bank of Nigeriaen_US
dc.identifier.citationZubair, A., Okorie, G. and Sanusi, A.R. (2013). Exchange rate pass-through to domestic prices in Nigeria: an empirical investigation. Economic and Financial Review, 51(1), 1-27en_US
dc.identifier.issn1957-2968
dc.identifier.urihttp://repo.cbn.gov.ng/jspui/handle/123456789/306
dc.language.isoenen_US
dc.publisherCentral Bank of Nigeria, Research Departmenten_US
dc.relation.ispartofseriesVol. 51;No.1
dc.subjectExchange rate pass-throughen_US
dc.subjectStructural Vector Autogressionen_US
dc.subjectExchange rate regimesen_US
dc.subjectNigeriaen_US
dc.titleExchange rate pass-through to domestic prices in Nigeria: an empirical investigationen_US
dc.typeArticleen_US

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