Indicators of Convergence

  • Posted on: 1 December 2010
  • By: radmin

According to the African Monetary Cooperation Programme, in order to achieve harmonization, the following criteria should be observed by at least 51% of the AACB membership:

Primary Criteria

  • Overall budget deficit (excluding grants) GDP ratio < 3%
  • Inflation rate < 3%
  • External Reserves ³ 6 months of goods and services

Secondary Criteria

  • Elimination of domestic arrears and non-accumulation of new arrears
  • Tax Revenue/GDP ratio ³ 20%
  • Wage bill/Total tax revenue < 35%
  • Public investments financed from internal sources > 20%
  • Maintainance of a positive real interest rate
Central Banks: 

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