Indicators of Convergence

  • Posted on: 29 November 2010
  • Updated on: 12 July 2012
  • By: SIERRALEONE

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
Central Banks: 

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