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TheAfrican Monetary Union (AMU) is the proposed creation of aneconomic and monetary union for the countries of theAfrican Union, administered by theAfrican Central Bank. Such a union would call for the creation of a new unified currency, similar to theeuro; the hypothetical currency is sometimes referred to as theafro orafriq.[1] The single African currency is to be composed of currency units made up of regional union reserve bank currency units of which are made up of country specific currencies (The Arab Maghreb Union (AMU) -Northern Afriq,Southern African Development Community (SADC) -Southern Afriq,Economic Community of West African States (ECOWAS) -Western Afriq orECO,East African Community (EAC) -Eastern Afriq,Common Market for Eastern and Southern Africa (COMESA) -Central Afriq etc.).
The Abuja Treaty, an international agreement signed on June 3, 1991, inAbuja,Nigeria, created theAfrican Economic Community, and called for an African Central Bank to follow by 2028. As of 2019[update], the plan is to establish an African Economic Community with a single currency by 2023.[2][3][needs update]
There are two existingregional currency unions in Africa, using theWest African CFA franc, and theCentral African CFA franc, respectively. Additionally, theCommon Monetary Area links several countries in Southern Africa based on theSouth African rand.
The African Union's plans for further integration encourage the development of more such regional unions as an intermediate step to full monetary union. One proposed union is theeco, a proposed currency for members of theEconomic Community of West African States (ECOWAS).
In 2002, Mansour Ciss and Baruch Gottlieb created a "prototype" currency, called the AFRO, which they presented at theDakar Biennale of Contemporary African Art on May 10. It was designed by Dr. Professor Boamh.[4][5] The project was a response to the perceived lack of independence created by use of theCFA franc. Notes and coins of the imaginary currency were produced, and given away or sold to the people ofDakar andSenegal to encourage them "to reflect on the meaning (value) of money and the future of their own local currency".[6]
In 2015, Anthony Maruping stated that Kenya, Uganda, Tanzania, Rwanda and Burundi were committed to join a common currency in the next ten years.[7] So far only three of the 53member states of the African Union in 2009 have committed to using the currency (in 2022, the African Union has 55 members).[citation needed]
Egypt,Eswatini, andLesotho have logged reservations over the precise date of monetary union and have requested a two- to three-year delay.[8]
Seychelles may not join as a result of economic fears and may, along withCape Verde, attempt to join theeuro[9] at a later date, while the official currency ofMayotte is theeuro.[10]
TheAfrican Central Bank (ACB) is one of the three financial institutions of the African Union. It will, over time, take over the responsibilities of theAfrican Monetary Fund.
The creation of the ACB, to be completed by 2028, was first agreed upon in the 1991 Abuja Treaty. The 1999Sirte Declaration called for a speeding up of this process, with creation by 2020.[11]
When it is fully implemented viaPan-African Parliament legislation, the ACB will be the sole issuer of the African single currency (African Monetary Union/Afro), will become the banker of African Governments, will be the banker to Africa's private and public banking institutions, will regulate and supervise the African bankingindustry, and will set the official interest andexchange 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] Although some countries have reservations about fulleconomic and monetary union, several regional monetary unions already exist, and others are planned.
Signatories to the treaty were all members of theOrganisation of African Unity (predecessor of the AU) at the time (Eritrea, South Africa, South Sudan and Morocco have since joined):[12][13]
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