African Monetary Union: Difference between revisions

There are two existing [[Central banks and currencies of Africa|regional currency unions in Africa]], using the [[West African CFA franc]], and the [[Central African CFA franc]], respectively. Additionally, the [[Common Monetary Area]] links several countries in southernSouthern Africa based on the [[South African rand]].

In 2002, Mansour Ciss and Baruch Gottlieb created a "prototype" currency, called the AFRO, which they presented at the [[Dakar Biennale of Contemporary African Art]] on May 10 . It was designed by Dr. Professor Boamh .<ref>{{cite web|url=http://deberlinisation.de/archive/afro/afro/stage2/afrotoday.htm |title=Deber International Reinigungsfirma Hamburg – |website=Deber International Reinigungsfirma Hamburg |language=en-US |access-date=2016-05-08 |url-status=dead |archive-url=https://web.archive.org/web/20121116105958/http://deberlinisation.de/archive/afro/afro/stage2/afrotoday.htm |archive-date=2012-11-16 }}</ref><ref>{{cite web|url=http://portal.unesco.org/culture/en/ev.php-URL_ID=29133&URL_DO=DO_TOPIC&URL_SECTION=201.html|archive-url=https://wayback.archive-it.org/all/20080816103615/http://portal.unesco.org/culture/en/ev.php-URL_ID=29133&URL_DO=DO_TOPIC&URL_SECTION=201.html|url-status=dead|archive-date=2008-08-16|title=The Afro, a prototype currency for all Africa|website=portal.unesco.org|access-date=2016-04-12}}</ref> The project was a response to the perceived lack of independence created by use of the [[CFA franc]]. Notes and coins of the imaginary currency were produced, and given away or sold to the people of [[Dakar]] and [[Senegal]] to encourage them "to reflect on the meaning (value) of money and the future of their own local currency".<ref name="afrotoday">[http://deberlinisation.de/archive/afro/afro/stage2/afrotoday.htm The Afro Today] {{webarchive |url=https://web.archive.org/web/20121116105958/http://deberlinisation.de/archive/afro/afro/stage2/afrotoday.htm |date=November 16, 2012 }}</ref>

In 2015, Anthony Maruping stated that Kenya, Uganda, Tanzania, Rwanda and Burundi were committed to join a common currency in the next ten years.<ref>{{Cite news|url=http://allafrica.com/stories/201506130352.html|title=Africa: AU Summit – African States Consider Single Currency, Passport|date=2015-06-13|newspaper=Premium Times (Abuja)|access-date=2017-02-04}}</ref> So far only three of the 53 [[Member State of the African Union|member states]] of the African Union in 2009 have committed to using the currency (in 2022, the African Union has 55 members).{{Citation needed|date=September 2009}}

The [[African Central Bank]] (ACB) is one of the three financial institutions of the African Union. It will, over time, take over the responsibilities of the [[African Monetary Fund]].

The creation of the ACB, to be completed by 2028, was first agreed upon in the 1991 Abuja Treaty. The 1999 [[Sirte Declaration]] called for a speeding up of this process, with creation by 2020.<ref name="AEM-Creation">{{cite web | author = Paul R. Masson and Heather Milkiewicz | date =Jul 2003 | url=http://www.brookings.edu/comm/policybriefs/pb121.htm | title =Africa's Economic Morass--Will a Common Currency Help? | work = The Digital Collegian | access-date =2006-04-22 |archive-url = https://web.archive.org/web/20071009014415/http://www.brookings.edu/comm/policybriefs/pb121.htm |archive-date = 2007-10-09}}</ref>

When it is fully implemented via [[Pan-African Parliament]] legislation, the ACB will be the sole issuer of the African single currency (African Monetary Union/Afro), will become the banker of the African GovernmentGovernments, will be the banker to Africa's private and public banking institutions, will regulate and supervise the African banking [[Industry (economics)|industry]], and will set the official interest and [[exchange rates]]; in conjunction with the African Government's administration.

The current timeline established by the Abuja Treaty calls for a single African currency to be instituted by the African Central Bank by 2028. {{Citation needed|date=February 2008}} Although some countries have reservations about full [[economic and monetary union]], a number ofseveral regional monetary unions already exist, and others are planned.

| style="background: #ccf" | [[Lesotho loti|LSL]]<br/>[[South African rand|ZAR]]<small>(pegged at parity 1:1)</small>

! [[Sahrawi Arab Democratic Republic]]

| [[Zimbabwean ZiG|ZWG]] (see note)

| style="text-align:left;"| As of 29 January 2014 the [[South African rand]], [[UnitedBotswana States dollarpula]], [[Australianpound dollarsterling]], [[Indian rupee]], [[Renminbi|Chineseeuro]], yuan[[Japanese yen]], [[Australian dollar]], [[United States dollar]] and [[JapaneseRenminbi|Chinese yenyuan]] are all legal tender in Zimbabwe.