This study examines the effects of the trilemma index on financial market development across thirty-eight (38) African countries. The analysis is motivated by the increasing globalization of capital markets, which has encouraged many African economies to liberalize their financial systems in order to attract foreign investment and enhance market liquidity. The findings indicate that the interaction between monetary independence and exchange rate stability has a negative effect on both financial market depth and financial access in Africa. In addition, the interaction between monetary independence (MI) and financial openness significantly influences financial market access. Similarly, the combined effect of the financial openness index and exchange rate stability also has a significant impact on financial market access in African economies. The study concludes that financial openness is a key policy instrument for improving financial market access and efficiency across African markets.
Financial Market Development, Trilemma Index, Financial Openness, Monetary Independence, Exchange Rate Stability, Africa.
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