Four questions on the state of UEMOA and implications for other regional economic communities
To what extent does UEMOA encourage trade and financial integration? How do UEMOA countries compare to other sub-Saharan African countries in terms of macroeconomic stability? Has UEMOA’s fixed exchange rate regime impeded competitiveness? And how has UEMOA promoted economic convergence among member countries? Amadou Sy and Mariama Sow provide some answers to these key questions in an article posted on the Brookings blog. They point out that the common currency is “only one tool among many”, and more needs to be done to reduce non-tariff barriers to trade and to comply with convergence criteria. In preparation for the planned integration with the West African Monetary Zone (WAMZ), which includes Nigeria, “financial ties and domestic macroeconomic frameworks will need to be strengthened”, they conclude.