Outlook for the African Monetary Unions

The Central and West African Monetary Unions, the oldest monetary unions in economic history, have undergone major changes in the past fifty years. These changes have helped to strengthen their institutional framework and have contributed to fostering closer regional integration by giving rise to economic unions as of 1994. However, much remains to be done in both monetary unions in order to reap the full benefits of this regional integration process, in particular to enhance the effectiveness of monetary policy, deepen financial integration and address the challenges stemming from these developments. Avenues of progress can already be identified in such a way as to promote a more active monetary policy, strengthen the mutual surveillance of fiscal policies and macroeconomic imbalances and implement crisis management mechanisms.