Indicators of Convergence

According to the West African Monetary Zone Programme, in order to achieve harmonization the following criteria should be observed: -

Primary Criteria

• Fiscal Deficit (excluding grants) in percent of GDP < 4
• Inflation Rate (yr-on-yr) (%) Single digit
• Central Bank Financing (% previous year’s tax receipts) < 10
• Gross Foreign Reserves (in months of imports) > 3

Secondary Criteria

• Domestic Arrears (in millions of Leones) 0.0
• Tax Revenue (% of GDP) > 20
• Wages of Salary Expenditure (% Total Tax Revenue < 35
• Real Interest Rate > 0
• Real Exchange Rate/Leones/US$ Stable
• Public Investment/Tax Revenue Ratio (%) > 20