The International financial system has witnessed major developments and has been impacted largely by series of financial crises over the past decades, from the 70s through the 90s and in the late 2000s, affecting both the developed, emerging and developing economies. Financial Integration, development of a single European currency, Capital flows and current account liberalization; regarded as fallouts of globalization and international trade are seen as major developments within the International Financial Systems. A comparison analysis of the financial developments between Europe and Africa is carried out in this paper, the impact of the financial System in Europe and Africa. It examines suggested reforms in the International Finance System and concludes with suggestions and proposals on the way forward for the International Financial System as forward by economists and scholars.

Keywords: International Finance, Foreign exchange, financial crisis, capital flows, Europe, Africa