Distributional and nutritional impact of devaluation in Rwanda

The effect of devaluation on household welfare, demand and nutritional intake was investigated using data from the National Household Budget and Consumption Survey in Rwanda. The survey revealed that devaluation decreased the income of the poor by 4% or less. Its impact on caloric intake was even less than 4%. Its effect on urban and high-income households was proportionately two to three times larger. This suggested that the urban poor is more affected by devaluation than the rural poor. These results may be caused by households' insulation from price changes by home production.