04817oam 22009254 450 991078824610332120230721045623.01-4623-2755-91-4527-1478-997866128404491-282-84044-41-4518-6944-4(CKB)3170000000054992(EBL)1607816(SSID)ssj0000944026(PQKBManifestationID)11573588(PQKBTitleCode)TC0000944026(PQKBWorkID)10982726(PQKB)11519537(OCoLC)646943039(MiAaPQ)EBC1607816(IMF)WPIEE2008083(EXLCZ)99317000000005499220020129d2008 uf 0engtxtccrExchange Rate Assessment in a Resource-Dependent Economy : The Case of BotswanaWashington, D.C. :International Monetary Fund,2008.1 online resource (31 p.)IMF Working PapersDescription based upon print version of record.1-4519-1398-2 Includes bibliographical references.Contents; I. Introduction; II. External Sector Developments and Key Vulnerabilities; A. Balance of payments; Figures; 1. Balance of Payments Trends; B. Evolution of REER indices; III. Equilibrium Exchange Rate Estimation; A. Behavioral equilibrium exchange rate approach; 2. Real Effective Exchange Rate Indices; B. Estimation results; 3. Determinants of the Real Effective Exchange Rate; 4. Equilibrium Real Exchange Rate Estimation; IV. External Sustainability Approach; Tables; 1. Assumptions; 5. External Sustainability Assessment; V. Export Performance and Nonprice Competitiveness IndicatorsA. External sector outcomes B. Nonprice indicators of competitiveness; 6. Export Performance Indicators; 2. Comparative Costs of Infrastructure Services in the Late 1990's; 3. Comparativeness Rankings; VI. Summary and Conclusions; 7. Governance Indicators; References; Appendix; Appendix Tables; 1. Unit Root Tests; 2. Test for Model Reduction; 3. Cointegration Tests: Trace Test and Maximum Eigenvalue; 4. Results of Cointegration Estimation; 5. Residuals Tests; Appendix Figures; 1. Breakdown point Chow Tests; 2. Equilibrium REER Estimation: Cointegration ResidualsThe paper combines various methodologies to assessing the level of the exchange rate in Botswana, explicitly taking into account the implications of its dependency on diamond exports. Real exchange rate estimation indicates that, after a period of overvaluation, Botswana's real effective exchange rate is now broadly in line with economic fundamentals. The projected current account path is also consistent with external sustainability, defined to ensure sufficient savings of diamond wealth in order to maintain a stable import and consumption path through 2050. Sustaining consumption over the longer term will however require to address obstacles to non-diamond exports' competitiveness.IMF Working Papers; Working Paper ;No. 2008/083Foreign exchange ratesBotswanaEconometric modelsDiamond industry and tradeBotswanaEconometric modelsExports and ImportsimfForeign ExchangeimfCurrent Account AdjustmentimfShort-term Capital MovementsimfTrade: GeneralimfCurrencyimfForeign exchangeimfInternational economicsimfReal effective exchange ratesimfCurrent accountimfReal exchange ratesimfExportsimfExchange ratesimfBalance of paymentsimfBotswanaEconomic conditionsEconometric modelsBotswanaEconomic policyEconometric modelsBotswanaimfForeign exchange ratesEconometric models.Diamond industry and tradeEconometric models.Exports and ImportsForeign ExchangeCurrent Account AdjustmentShort-term Capital MovementsTrade: GeneralCurrencyForeign exchangeInternational economicsReal effective exchange ratesCurrent accountReal exchange ratesExportsExchange ratesBalance of payments332.45DcWaIMFBOOK9910788246103321Exchange Rate Assessment in a Resource-Dependent Economy3673570UNINA