Monetary integration in Eastern and Southern Africa: choosing a currency peg for COMESA
AbstractAfrican countries involved in monetary integration projects have been advised to peg their currencies against an external anchor before the definite fixing of exchange rates. In this study we estimate optimum currency area indices to determine, between four alternatives, which international currency would be the most suitable anchor for COMESA members and for a set of other selected African economies. We conclude that the euro and the British pound prevail over the US dollar or the yen; that the euro would be the best pegging for most, but not all, COMESA members; and that some of these economies display evidence of more intense integration with third countries, with which they share membership in other (overlapping) regional economic communities, than within COMESA.
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Bibliographic InfoPaper provided by University of Evora, CEFAGE-UE (Portugal) in its series CEFAGE-UE Working Papers with number 2012_03.
Length: 32 pages
Date of creation: 2012
Date of revision:
Optimum currency areas; Monetarry anchor; Currency pegs; African regional economic communities; African monetary integration.;
Other versions of this item:
- Carlos Vieira & Isabel Vieira, 2013. "Monetary Integration In Eastern And Southern Africa: Choosing A Currency Peg For Comesa," South African Journal of Economics, Economic Society of South Africa, vol. 81(3), pages 356-372, 09.
- F15 - International Economics - - Trade - - - Economic Integration
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-AFR-2012-02-20 (Africa)
- NEP-ALL-2012-02-20 (All new papers)
- NEP-MON-2012-02-20 (Monetary Economics)
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