The Effect of Trilemma Index on Financial Market Efficiency and Access: Evidence from Africa

The author examined the effects of the trilemma index on financial market development from thirty-eight (38) African national economies as a result of capital market globalization that has compelled many countries to open their financial markets in anticipation of the foreign investment required to improve market liquidity. The author indicated that the interaction of monetary independence and exchange rate stability affects both financial market depth and access in Africa negatively. The interaction of monetary independence (MI) and financial openness significantly affected financial market access in Africa. The author also found out that the interaction of the financial openness index and exchange rate stability significantly affected financial market access in Africa. The author concluded that county financial openness is the best tool for financial market access and efficiency in African markets