The Asymmetric Efect of Exchange Rate on the Household Consumption Expenditures Etikonomi Volume 22 (1), 2023: 31 - 44 P-ISSN: 1412-8969; E-ISSN: 2461-0771 Raheel Gohar 1 , Bisharat Hussain Chang 2* , Emmanuel Uche 3 , Pervez Ahmed Memon 4 , Kashif Bhatty 5 1 Al Yamamah University, Riyadh, Saudi Arabia 2,4 Department of Business Administration, Sukkur IBA University, Sukkur, Sindh, Pakistan 3 Department of Economics, Abia State University, Uturu, Abia State, Nigeria 5 Shaheed Zulifqar Ali Bhutto Institute of Science and Technology, Larkana Campus, Larkana, Pakistan E-mail: 1 r_gohar@yu.edu.sa, 2 bisharat.chang86@gmail.com, 3 uche.emmanuel@abiastateuniversity.edu.ng, 4 pervaiz@iba-suk.edu.pk, 5 kashifabhatty@gmail.com *) Corresponding Author How to Cite: Gohar, R., Chang, B. H., Uche, E., Memon, P. A., & Bhatty, K. (2023). The Asymmetric Efect of Exchange Rate on the Household Consumption Expenditures. Etikonomi, 22(1), 31–44. https://doi.org/10.15408/etk.v22i1.23428. JEL Classifcation: D12 D60 I30 Received: 03 December 2021 1 st Revision: 12 February 2022 2 nd Revision: 28 March 2022 Accepted: 05 April 2022 Abstract Previous literature on the exchange rate and household consumption failed to examine the efect of positive and negative changes in the exchange rate on household consumption expenditures. We extended the available literature by investigating the asymmetric impacts in African emerging economies (AEE). To attain this aim, we utilized the nonlinear ARDL model, which covers both negative and positive shocks in the exchange rate. Our results indicate that movements in the exchange rate have asymmetric impacts on household consumption in all the included emerging economies, excluding Nigeria. Our fndings propose recommendations for the policymakers to ensure the alignment of the optimal exchange rate for countries of emerging African economies and propose relevant policies for the countries. Keywords: asymmetric bounds test; household consumption; exchange rate; African emerging economies