The Impact Of Exchange Rate On Economic Growth In Central Africa

Since the 1990 s,the economies of African countries have gradually recovered and achieved rapid growth.Among them,economic growth in Central Africa is relatively significant.The main reasons for economic growth in Central Africa can be separated into many aspects of the external environment and internal factors,including the continuous reduction of wars and clashes and the significant increase in political stability.The macroeconomic reform measures implemented by countries have enhanced the growth potential of Central Africa economy;The rise in commodity costs and capital inflows within the international market have improved the trade and financing conditions of Central Africa countries.Due to different initial conditions,Central Africa countries will face more difficulties in the process of economic transformation than other countries.Starting from the two dimensions of the important economy and also the money market,this paper summarises the channels of rate fluctuations touching Central African country economy into trade scale result,capital flow result and money stability effect.Using the monthly panel data of Central Africa's major economies in 2000-2016,the TGARCH model is used to measure exchange rate volatility indicators,and the PVAR model is used to empirically test the impact of exchange rate fluctuations on Central Africa's economy.The study found that rate fluctuations promoted the flow of capital,however it absolutely was not tributary to the event of international trade.It conjointly aggravated the turmoil in money markets to a particular extent,that wasn't tributary to the event of Central Africa economy and hindered the recovery of Central Africa economy.On this basis,the paper provides the corresponding countermeasures.