Financial market convergence and integration in the CFA Franc zones.

详细信息   

• 作者：Tibui ; Joseph Louis Tantoh.
• 学历：D.B.A.
• 年：2016
• 毕业院校：Alliant International University.
• Department：Africanstudies.
• ISBN：9781339139234
• CBH：3728474
• FileSize：2279311
• Pages：85

文摘

The 14 countries in the CFA Franc (Communaute Financiere Africaine ) zones have a single currency, a fixed exchange regime and two economic and monetary unions (zones), one in West Africa and one in Central Africa with the currency now anchored to the euro. The CFA Franc zones have established convergence criteria that mimic the convergence criteria of the Euro zone to achieve financial market convergence. By use of the term structure of interest rates we construct radar diagram movies to observe dynamically and visually the financial market convergence and integration in the CFA Franc zones. We conclude that considerable financial convergence and integration has been achieved in the West CFA Franc zone like in Euro zone and in NAFTA. But that financial convergence is lagging behind in the Central CFA Franc zone. The theoretical basis of the research is financial arbitrage using the statistical distribution of the term structure of interest rates. Financial market convergence is calculated by analyzing the interest rate differentials. Sufficient convergence will lead to the narrowing of the interest differentials over time and opening up the possibility of a forward spot exchange rate in the CFA Franc zones, calming the fears of introducing an alternate exchange rate system.