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Monetary stability and regional currency board: towards a two-tier system to accelerate regional integration in the Horn of Africa: a policy proposal

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  • Aman, Moustapha
  • Nenovsky, Nikolay

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.

Suggested Citation

  • Aman, Moustapha & Nenovsky, Nikolay, 2022. "Monetary stability and regional currency board: towards a two-tier system to accelerate regional integration in the Horn of Africa: a policy proposal," MPRA Paper 115605, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115605
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    References listed on IDEAS

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    1. NENOVSKY, Nikolay & BONDI, Gildas, 2024. "Vers une monnaie commune des pays de l’AES basée sur les ressources : approches théoriques et aspects pratiques [Towards a common currency of the AES countries based on resources: theoretical appro," MPRA Paper 121439, University Library of Munich, Germany.

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    More about this item

    Keywords

    monetary regime; currency board; Central Bank; Horn of Africa;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions

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