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Estimating the Real Exchange Rate Misalignment : case of the cfa franc zone

Kuikeu, Oscar (2012): Estimating the Real Exchange Rate Misalignment : case of the cfa franc zone.

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Abstract

In cfa franc zone, the exchange rate was devalued, in 1994, in order to deal with the major macroeconomic imbalances that have affected the members during the 1980 decade. Thus, the aim of this paper is to know if this devaluation was relevant, and, in the sense that the devaluation is relevant only if the real exchange rate is overvalued, we will assess the degree of the real exchange rate misalignment in the cfa franc zone.

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