Is an African Monetary Union Project for the CAEMC Countries Possible? ()
ABSTRACT
The aim of this research is to verify whether
it is possible for the African countries of CAEMC to form a solidly established
monetary zone. Our ap
proach is based on the work of Gosselin and Parent (2012), in order to measure the capacity to mobilize the foreign exchange
reserves needed to protect against
speculative attacks. The results show that in the short term, when GDP, money
supply as a percentage of GDP, exports of goods and services and imports of goods and services as a percentage
of GDP increase by 10%, total foreign exchange reserves rise by 45.2%,
9.1%, 4.1% and 16.3% respectively for Congo,
and by 37.8%, 35.0%, 7.5% and 18.9% for Gabon. In the long term, total foreign
exchange reserves increased by 2.8%, 22.0%, 18.4% and 8.7% respectively for
Congo. However, for Gabon, when GDP and imports of goods and services as a
percentage of GDP increase by 10%, total reserves fall by 3.7% and 12.1%, but
rise by 25.7% and 20.5% when money supply as a percentage of GDP and
exports of goods and services increase by 10%.
Share and Cite:
Mayéko, L. (2023) Is an African Monetary Union Project for the CAEMC Countries Possible?.
Modern Economy,
14, 1865-1891. doi:
10.4236/me.2023.1412098.
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