Government Securities Markets in the West African Economic and Monetary Union: A Review |
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| Authors: | Amadou NR Sy |
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| Institution: | International Monetary Fund. The views expressed herein are those of the author and do not necessarily represent those of the IMF or IMF policy. The author wishes to thank the editor and two anonymous referees as well as Allison Holland, Anne‐Marie Gulde‐Wolf, Alexandre Chailloux, Abdourahmane Sarr, and the seminar participants at the Banque Centrale des états de l’Afrique de l’Ouest (BCEAO) in Dakar, Sénégal, for their comments. |
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| Abstract: | Abstract: 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. |
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