Tito warns of African ‘laughing stock’

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http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A583542
Reserve Bank governor Tito Mboweni said yesterday that African leaders risked reducing themselves to “a laughing stock” if they pressed ahead with plans for an African central bank (ACB) and a common currency for the continent — against the advice of technocrats. He warned that the idea was bound to flounder like other failed grand African plans.
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“If we take the convergence criteria into account, we will come to the conclusion that monetary union is not easy. The challenges are far greater than the niceties of brotherhood and sisterhood. We cannot just rush to form the ACB before meeting the basic criteria.

“But the leadership of the AU does not seem to appreciate the advice. The Association of African Central Banks is being ignored by the AU,” he said.
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Finally some sense. Its a nice contrast to this:

The idea of a common currency for Africa was first discussed by the Organisation of African Unity , the predecessor of the AU, in 1963. African leaders see a common currency as “an important symbol of strength and solidarity” — thus plans are under way to set up the bank as soon as possible, he said.
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Because clearly solidarity is what matters, not economic fundamentals. This'd be a surefire way to kill the SA economy.
 
As long as we stay out of it all is well. :)

Our greatest risk for security in this country is the proposed AU one continent idea and single currency that goes with it...
 
antowan said:
As long as we stay out of it all is well. :)

Our greatest risk for security in this country is the proposed AU one continent idea and single currency that goes with it...
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I can just see Mbeki embracing it with open arms. That and open borders. :eek: Although we already seem to have de facto open borders.
 
Oh, my god. Is africa really that stupid. Oh, forget I asked.
 
They're just trying to copy the EU. European Central Bank, European Union, etc..

Some sort of inferiority complex again.
 
Why stop with Africa. One financial unit for the whole world. Then we would be equal. Serious.
One language as well.

Although the concept of one unit of currency such as the "Afro" has merit, when in this century could we attempt to implement this and who might I ask will pay for the conversion.
Poor countries like Zimbabwe would love the idea as it would change their landscape immediately as they virtually have nothing to lose. Botswana their neighbours have worked hard to get their economy working may share a different view again.

Have they actually put this idea to the vote? And I don't mean some or other rushed showing of hands at some meeting, but a vote from each and every Finance Minister across Africa.
And for all reasoning this vote should be unanimous to carry through otherwise the will of one Sovereign Country would be imposed on another and we wouldn't want that to happen as people like Mugabe are often shouting out to the media that it is his Zimbabwe and no one else's.
 
As someone else said, the Europe has the Euro, Africa needs an Afro. :) Though not in terms of currency.
 
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