IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/115605.html

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/115605/1/MPRA_paper_115605.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mrs. Ruby Randall & Mr. Jorge Shepherd & Mr. Frits Van Beek & Mr. J. R. Rosales & Ms. Mayra Rebecca Zermeno, 2000. "The Eastern Caribbean Currency Union: Institutions, Performance, and Policy Issues," IMF Occasional Papers 2000/012, International Monetary Fund.
    2. Eric Magnin & Nikolay Nenovsky, 2022. "Diversity of Capitalism in Central and Eastern Europe," Springer Books, Springer, number 978-3-031-04950-7, January.
    3. Azam, Jean-Paul, 2010. "A State is Born: Transport Infrastructure and Democracy in Somaliland," TSE Working Papers 10-229, Toulouse School of Economics (TSE).
    4. William Luther, 2015. "The monetary mechanism of stateless Somalia," Public Choice, Springer, vol. 165(1), pages 45-58, October.
    5. Eric Magnin & Nikolay Nenovsky, 2022. "Diversity of Capitalism in Central and Eastern Europe. Dependent Economies and Monetary Regimes," Post-Print hal-03780895, HAL.
    6. Souleymane NDAO & Nikolay Nenovsky, 2020. "External Dependence of the African Franc CFA zone. Empirical Investigations on Money Supply Process," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 357-367, September.
    7. Mohamed Ibrahim Nor & Tajul Ariffin Masron & Tariq Tawfeeq Yousif Alabdullah, 2020. "Macroeconomic Fundamentals and the Exchange Rate Volatility: Empirical Evidence From Somalia," SAGE Open, , vol. 10(1), pages 21582440198, January.
    8. Nenovsky, Nikolay & Hristov, Kalin, 2002. "The new currency boards and discretion: empirical evidence from Bulgaria," Economic Systems, Elsevier, vol. 26(1), pages 55-72, April.
    9. Thomas Coutrot & Bruno Théret, 2019. "Système fiscal de paiement complémentaire : un dispositif pour renverser l’hégémonie," Revue française de socio-Economie, La découverte, vol. 0(1), pages 163-170.
    10. Ayumu Yamauchi, 2004. "Fiscal Sustainability: The Case of Eritrea," IMF Working Papers 2004/007, International Monetary Fund.
    11. Souleymane Ndao & Nikolay Nenovsky & Kiril Tochkov, 2019. "Does monetary integration lead to income convergence in Africa? a study of the CFA monetary area," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 18(2), pages 67-85, June.
    12. Jamil A. Mubarak, 2002. "A Case of Private Supply of Money in Stateless Somalia," Journal of African Economies, Centre for the Study of African Economies, vol. 11(3), pages 309-325, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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 approaches and practical aspects]," MPRA Paper 121439, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aman, Moustapha & Nenovsky, Nikolay, 2022. "Stabilité monétaire et Currency Board régional : Vers un système à deux niveaux pour accélérer l'intégration régionale dans la Corne de l'Afrique. (Une proposition de politique monétaire) [Monetary Stability and Regional Currency Board: towards a ," MPRA Paper 115298, University Library of Munich, Germany.
    2. Souleymane NDAO & Nikolay Nenovsky, 2020. "External Dependence of the African Franc CFA zone. Empirical Investigations on Money Supply Process," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 357-367, September.
    3. Paunovic, Igor, 2005. "Public debt sustainability in the northern countries of Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    4. Minea, Alexandru & Rault, Christophe, 2011. "External monetary shocks and monetary integration: Evidence from the Bulgarian currency board," Economic Modelling, Elsevier, vol. 28(5), pages 2271-2281, September.
    5. Jablonski, Ryan S. & Oliver, Steven & Hastings, Justin V., 2017. "The Tortuga disease: the perverse effects of illicit foreign capital," LSE Research Online Documents on Economics 67105, London School of Economics and Political Science, LSE Library.
    6. Tony Addison & Alemayehu Geda & Philippe Le Billon & S Mansoob Murshed, 2005. "Reconstructing and Reforming the Financial System in Conflict and 'Post-Conflict' Economies," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 703-718.
    7. Ravinder Rena, 2005. "Challenges for Food Security in Eritrea: A Descriptive and Qualitative Analysis," African Development Review, African Development Bank, vol. 17(2), pages 193-212.
    8. Nenovsky, Nikolay, 2020. "The Theory of the Emission Economy Bolshevik roots of "Modern Monetary Theory"," MPRA Paper 113048, University Library of Munich, Germany.
    9. Jean-Baptiste Desquilbet & Nikolay Nenovsky, 2005. "Confiance et ajustement dans les régimes d'étalon-or et de caisse d'émission," Mondes en développement, De Boeck Université, vol. 130(2), pages 77-93.
    10. Rena, Ravinder, 2006. "War-Torn Eritrean Economy – Some Issues And Trends," MPRA Paper 10806, University Library of Munich, Germany.
    11. Avidit Acharya & Robin Harding & J. Andrew Harris, 2020. "Security in the absence of a state: Traditional authority, livestock trading, and maritime piracy in northern Somalia," Journal of Theoretical Politics, , vol. 32(4), pages 497-537, October.
    12. Daniel D. Bonneau & Joshua C. Hall & Yang Zhou, 2022. "Institutional implant and economic stagnation: a counterfactual study of Somalia," Public Choice, Springer, vol. 190(3), pages 483-503, March.
    13. Feng, Shu & Fu, Liang & Ho, Chun-Yu & Alex Ho, Wai-Yip, 2023. "Political stability and credibility of currency board," Journal of International Money and Finance, Elsevier, vol. 137(C).
    14. K. Dimitrova & Nikolay Nenovsky, 2002. "Dual Inflation under the Currency Board. The challenges of Bulgarian EU accession," Post-Print halshs-00259861, HAL.
    15. Nikolay Nenovsky & Petar Chobanov, 2004. "Dynamics of the Inter-Bank Market in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 32-52.
    16. Faris Mazen OMAIR, 2018. "Feasibility study on the implementation of a Unified Currency in the Gulf Cooperation Council," Journal of Economics Bibliography, EconSciences Journals, vol. 5(2), pages 107-121, June.
    17. Goktug Sahin & Afsin Sahin, 2023. "An Empirical Examination of Asymmetry on Exchange Rate Spread Using the Quantile Autoregressive Distributed Lag (QARDL) Model," JRFM, MDPI, vol. 16(1), pages 1-25, January.
    18. Erdinç, Didar, 2013. "Monetary Transmission and Bank Lending Channel under the Currency Board: The Case of Bulgaria, 1999-2010," MPRA Paper 111539, University Library of Munich, Germany.
    19. Alain Raybaut & Dominique Torre, 2004. "Unions monétaires, caisses d'émission et dollarisation : les fondements analytiques des systèmes de change « ultra-fixes »," Revue d'Économie Financière, Programme National Persée, vol. 75(2), pages 37-54.
    20. Wang Lei, 2019. "A Farewell to Monetization," Man and the Economy, De Gruyter, vol. 6(2), pages 1-12, December.

    More about this item

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:115605. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.