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An Assessment of External Price Competitiveness for Mozambique

An Assessment of External Price Competitiveness for Mozambique by Francis Vitek
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This paper conducts an assessment of external price competitiveness for Mozambique. A variety of indicators suggest that Mozambique has recently lost external price competitiveness with respect to its major trading partners. Consistent with these indicators, an exchange rate assessment indicates that the metical is overvalued by 26 to 41 percent in real effective terms. If sustained, an overvaluation of this magnitude has the potential to retard economic growth and jeopardize external stability, calling for an adjustment of monetary policy to gradually restore external price competitiveness.
International Monetary Fund; August 2009
20 pages; ISBN 9781452758138
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Title: An Assessment of External Price Competitiveness for Mozambique
Author: Francis Vitek
 
ISBNs
1451917406
9781451873122
9781451917406
9781452758138