Download or read book Local Currency Debt Markets in the West African Economic and Monetary Union written by Amadou N. R. Sy and published by International Monetary Fund. This book was released on 2007-11 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper reviews trends and developments in the rapidly growing local currency debt markets in the WAEMU. The main findings are that common institutions, such as a regional central bank and securities exchange have led to high cross-border transactions within the union. However, excess liquidity in the regional banking system has led to limited credit differentiation among issuers and a reliance on supply and demand conditions as a key determinant of yields. The paper also discusses a number of policy issues, including debt management, that are likely to emerge as the markets for government securities continue to develop.