Measuring Financial Barriers Among East African Community Countries

This paper seeks to quantify existing financial barriers among East African Community (EAC) member countries based on analysis of each member country’s foreign exchange market. The primary contribution of this paper is the generation of an aggregate measure of financial barriers for the three relati...

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Bibliographic Details
Main Author: Wang, Yi David
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2010
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a Kenya 
653 |a Interbank rates 
653 |a Interest rates 
653 |a Government and the Monetary System 
653 |a Payment Systems 
653 |a Finance 
653 |a Regimes 
653 |a Monetary economics 
653 |a Financial services 
653 |a Currency 
653 |a Money 
653 |a International Financial Markets 
653 |a Currency markets 
653 |a Foreign Exchange 
653 |a Standards 
653 |a Financial markets 
653 |a Banks and Banking 
653 |a Currencies 
653 |a Monetary Systems 
653 |a Interest Rates: Determination, Term Structure, and Effects 
653 |a Interest rate parity 
653 |a Foreign exchange market 
653 |a Money and Monetary Policy 
653 |a Finance: General 
653 |a Foreign exchange 
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520 |a This paper seeks to quantify existing financial barriers among East African Community (EAC) member countries based on analysis of each member country’s foreign exchange market. The primary contribution of this paper is the generation of an aggregate measure of financial barriers for the three relatively more advanced members (Kenya, Uganda, and Tanzania) using forward foreign exchange and interbank interest rate data. Its empirical results, which are corroborated by other evidence such as the levels of development of the financial markets and restrictions on capital flows, suggest that Kenya is the EAC’s most financially open country, followed by Uganda, and then Tanzania. The fact that the three countries exhibit different degrees of financial openness suggests that financial integration in the EAC region has a way to go