Financial integration in the Common Monetary Area

bibliographic database
Line

Periodical article

Title:	Financial integration in the Common Monetary Area
Authors:	Nielsen, Hannah Uanguta, Ebson Ikhide, Sylvanus
Year:	2005
Periodical:	South African Journal of Economics
Volume:	73
Issue:	4
Pages:	710-721
Language:	English
Geographic terms:	Botswana Lesotho Namibia South Africa Swaziland - Eswatini Zambia Zimbabwe
Subjects:	international monetary relations interest rates Common Monetary Area
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2005.00048.x/pdf
Abstract:	Covering the period 1994-2004, this paper assesses the level of financial integration within the Common Monetary Area (CMA) countries, using the concept of the uncovered interest rate parity. The impact of foreign interest rates on the domestic interest rates, in this case South Africa's rates on the rates of the LNS countries (Lesotho, Namibia and Swaziland), is analysed. For comparative purposes, other neighbouring countries such as Botswana, Zambia and Zimbabwe are brought into the analysis. The results from the uncovered interest rate parity approach show that Lesotho, Namibia and Swaziland can be considered to be financially well-integrated with the South African market, while for Botswana, Zambia and Zimbabwe it shows the contrary. Bibliogr., notes, ref., sum. [ASC Leiden abstract]