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What is Natural Disasters and Exchange Rates Impact about?
This IMF Working Paper examines how natural disasters affect exchange rates across different countries and exchange rate regimes, using data from 177 countries between 1970 and 2019. The study finds that exchange rates in emerging markets and developing economies are more sensitive to natural disasters, with non-pegged regimes experiencing up to a 6% depreciation in the two years following a disaster. The findings highlight the importance of understanding these dynamics for policymakers and investors in dis
- Author
- alhadj.godigong
- Language
- EN