Exchange Rate Volatility and Trade Balance in Ghana

This book gives a comprehensive overview of effects of exchange rate volatility on trade balance in the Ghana over the last two decades. Governments in Africa are constantly pushed to liberalize their economies but the downsides of trade liberalization have been largely ignored. Though widely held that both trade and forex market liberalization can be used to restore balance in governments' trade payment, most government in Sub-Sahara Africa constantly have trade imbalances. In Ghana, exchange rate, a key influencer of international trade, has been for the past two decades relatively liberalized but this seems not to have the desired effects on Ghana's economy especially on its trade position. This book examines the effects of exchange volatility on trade balance in Ghana from the periods between 1990-2011. The findings of the interplay between exchange rate and international trade in Ghana provides interesting results and also challenges some of the widely held theorem of international trade and exchange rate.