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Government Securities Markets in the West African Economic and Monetary Union: A Review
Author(s) -
Sy Amadou N.R.
Publication year - 2010
Publication title -
african development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.654
H-Index - 32
eISSN - 1467-8268
pISSN - 1017-6772
DOI - 10.1111/j.1467-8268.2010.00238.x
Subject(s) - treasury , market liquidity , economic and monetary union , debt , financial system , economics , government (linguistics) , business , central bank , monetary policy , government debt , monetary economics , finance , international economics , european union , geography , linguistics , philosophy , archaeology
: The paper reviews trends and developments in the WAEMU government securities markets. Issuance of debt has grown more than tenfold since 2000 in the region, driven by the rapidly growing Treasury bills segment. The elimination of central bank financing of government has been the catalyst of this growth while excess liquidity in the banking system has helped sustain the market. Common institutions, such as a regional central bank and uniformity of issuance and distribution procedures have led to high cross‐border transactions. However, supply and demand conditions are more important than economic fundamentals in determining Treasury bill rates.