Even if developing countries are not responsible for global change, they have an active exchange rate policy, unlike the advanced countries that have adopted a purely floating regime. This article examines whether exchange rate policies explain the differences in change between Africa and other regions of the world. Using the OLS and two-stage instrumental variables (IV-2SLS) methods with data from 117 countries, we obtain a doubtful result. This suggests that, unlike other countries in world, exchange rate policy in Africa is negatively correlated with the global change. Specifically, fixed and flexible rates are the main sources of exogenous variation behind negative effect of exchange rate policy on global change. As a result, African countries are, a low level of their ability to adapt and mitigate climate risksin African countries. To avoid countries being forced to devalue their currencies in the face of a climate shock, developing countries need to maintain a relatively high stock of external reserves in stable periods, probably higher than the usual norm equivalent to three months’ imports.
