Monetary Stability and Regional Currency Board: Towards a Two-Tier System to Accelerate Regional Integration in the Horn of Africa. (A Policy Proposal)
Monetary Stability and Regional Currency Board: Towards a Two-Tier System to Accelerate Regional Integration in the Horn of Africa. (A Policy Proposal)

Author(s): Moustapha Aman, Nikolay Nenovsky
Subject(s): Economy, National Economy, Public Finances
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: monetary regime; Currency board; Central Bank; Horn of Africa
Summary/Abstract: The last few decades have been marked by a proliferation of currency union projects in Africa. In a context of exchange rate instability and poorly convertible currencies, the authorities in most of the countries of the Horn of Africa are looking for an exchange rate regime that can stabilise and develop their economies. To achieve monetary stability in this sub-region, which is at the crossroads of some of the busiest sea and land routes, this paper reflects on the potential benefits of a monetary system that is characterised by a two-tiered architecture: national currencies and a common currency governed by a regional Currency Board.

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