Monetary Cooperation and West African Integration
Full monetary integration implies two conditions: (1) an exchange rate union, which requires that exchange rates in the area bear a permanently fixed relationship to each other; (2) convertibility, in the
sense of a permanent absence of exchange controls in respect of both current and capital transactions within the area. Convertibility for trade-related transactions is indispensable for an effective customs union. The additional element of convertibility involved in monetary integration is capital market integration. This entails the establish ment of a unified capital market free from geographical restrictions of any kind on capital movements. Capital market integration is a requirement of a common market.