The dynamics of bond and equities markets in WAEMU

This chapter studies the development of securities markets in West African Economic and Monetary Union (WAEMU). The size of transactions traded is growing but deals in government securities continue to dominate the market. Market development (especially in secondary segment) is partly hindered by excess liquidity, lack of diversified investor base and investment strategies of market actors. To ensure fiscal discipline and macroeconomic stability, WAEMU has introduced a set of convergence criteria. Inflation and debt-ceiling criteria are met by most members, whereas other targets (fiscal balance, wage bill, government capital expenditure, current account balance and tax revenue) prove difficult to attain.