Africa in the international financial system

Abstract

This situation has been made even more precarious by the collapse of export revenue as the main component of domestic revenue. Since the 1980s, the volume of export revenue has been diminished by such factors as capital flight arising from the manipulation of external trade transactions' by way of import over invoicing and export under-invoicing, losses occasioned by the deteriorating terms of trade or the devaluation of external reserves due to currency fluctuation.