Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 348

Full Length Research Paper

Mixed exchange rate regime in the West African Economic and Monetary Union (WAEMU)

Ibrahima Thiam
UFR SES Université de Thiès Laboratoire CREFAT BP 967 Thiès Sénégal.
Email: [email protected]

  •  Accepted: 14 November 2011
  •  Published: 31 December 2011

Abstract

 

The debate on the issue of choosing the best exchange rate regime is still valid. Indeed, each exchange rate regime has both costs and benefits. For WAEMU countries, the current choice is less and less justified mainly because of globalization. Therefore, the objective of this study is to propose a mixed exchange rate regime pegged to the euro and U.S. dollar. The study shows that this type of plan allows WAEMU countries to be more competitive. Also, their economies will be less vulnerable to internal and external shocks. The study finally recommends a product diversification and intensification trade of intra zone.


Key words: Exchange rate regime, West African Economic and Monetary Union (WAEMU),exportations, CFA Franc, euro, dollar.