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Bullion

Keywords

Economic, Financial system, West African Monetary Zone, WAMZ, Financial system development

Abstract

The international financial turmoil of the 21 century has provoked much reflection and analysis within the international community on ways to strengthen the international financial architecture. It left behind important lessons, while exposing the limitations of individual country policy frameworks for preventing a systemic crisis. However, the issue of whether a common economic space is feasible within the West African Monetary Zone is still doubtful, given current efforts towards monetary union in Sub-Saharan Africa. This paper adopts an empirical review approach, identifying benefits and key constraints to a common economic space in the WAMZ vis-à-vis macroeconomic development in the WAMZ, with a view to deepening financial sector dynamics in the region. The review leads to the following broad conclusions: that financial sector development in the region is needed in facilitating economic integration, growth and poverty reduction as well as the need to balance financial innovation and economic stability. The paper concludes with strategies for promoting integration in the region that would ultimately create an open and integrated market among the WAMZ countries. This will leverage further opportunities for economic operators, promote trade and investment, and reinforce economic cooperation, reforms and competitiveness of the region.

Author Bio

The authors Adenuga, A.O. and Obiechina, M. E. are staff of the Research Department and Financial Markets Department, Central Bank Of Nigeria respectively. While Ogujuiba, K. K. is with the African institute for Applied Economics, Enugu.

Publication Title

CBN Bullion

Issue

1

Volume

35

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