## Monetary Union in West Africa (ECOWAS)

_Occasional Papers, February 14, 2001_

## Source details

**Canonical URL:** [Monetary Union in West Africa (ECOWAS)](https://www.imf.org/en/publications/occasional-papers/issues/2016/12/30/monetary-union-in-west-africa-ecowas-14690)

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## Bibliographic details
- Authors: Catherine A Pattillo, Paul R Masson
- Published: February 14, 2001
- Series: Occasional Papers
- DOI: https://doi.org/10.5089/9781589060142.084

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### Evaluation of a Monetary Union
- The chapter evaluates whether a monetary union makes economic sense for ECOWAS members.
- It reviews the economic situation of the ECOWAS members with the objective of evaluating the ease with which they can proceed to a common currency.
- Regional integration resulting in greater trade among ECOWAS countries may help increase efficiency of production.
- Trade among developing countries, in general, is likely to have fewer efficiency benefits than trade with developed countries because the possibilities of exploiting complementarities are less.

### Institutional requirements and design considerations
- The chapter discusses the institutional requirements for a successful Monetary Union in West Africa (ECOWAS).
- Emphasis is placed on institutional arrangements that would support exchange rate stability and macroeconomic coordination across members.

### Political momentum and policy channeling
- The chapter considers how best the political momentum for a union can be channeled toward a fundamental improvement in underlying policies.
- The foregoing considerations suggest that the momentum in favor of monetary union should be channelled into the crucial first phase of enhanced mutual surveillance.

### Policy recommendations and priority actions
- Enhanced mutual surveillance among ECOWAS members.
- Emphasis on each country improving its macroeconomic and structural policies.
- Success in improved policies and surveillance would help to increase exchange rate stability.

### Subjects and keywords (as listed)
- Subjects: Currencies, Economic integration, Exchange rates, Foreign exchange, International trade, Monetary unions, Money, Real effective exchange rates, Terms of trade
- Keywords: Currencies, currency, ECOWAS convergence criteria, ECOWAS country, ECOWAS monetary union, ECOWAS monetary union project, Exchange rates, Global, Monetary unions, North America, OP, Real effective exchange rates, Sub-Saharan Africa, Terms of trade, WAEMU, WAEMU country, West Africa

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_Source: https://www.imf.org/en/publications/occasional-papers/issues/2016/12/30/monetary-union-in-west-africa-ecowas-14690_