IMF Staff Country Reports

IMF Staff Country Reports
Journal
Publisher:
International Monetary Fund
ISSN:
1934-7685
IMF Country Reports cover economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
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West African Economic and Monetary Union : Selected Issues

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West African Economic and Monetary Union : Selected Issues
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Volume/Issue:
2015/101
Series:
IMF Staff Country Reports
Author(s):
International Monetary Fund. African Dept.
Publisher:
INTERNATIONAL MONETARY FUND
Published Date:
April 2015
DOI:
http://dx.doi.org/10.5089/9781475567595.002
ISBN:
9781475567595
ISSN:
1934-7685
Page:
70
This Selected Issues paper on West African Economic and Monetary Union presents external stability assessment report. The current account deficit declined in 2014. Although gross international reserve coverage has increased slightly, part of the current account deficit has been financed by a decline in commercial banks' net foreign assets. Contingent on the implementation of government's consolidation plans, and helped by a favorable oil price outlook, the current account deficit would further gradually decline and be matched by enough financial inflows in the medium term. According to various metrics, the real exchange rate appears to be broadly aligned with fundamentals. International reserve coverage should increase to provide stronger buffers against immediate short-term risks. Structural competitiveness and investment efficiency improvements will be essential to ensure that the planned large investment programs translate into growth and export gains as well as increased private inflows into the region.
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