Central bank governors bang heads on monetary integration

African central banks’ governors have called for speeding up of the process of monetary integration in Africa as a step towards achieving the goals of creating the African Central Bank (ACB) and ultimately issuing an African single currency.

Representatives from 31 African central banks, in addition to some from African and international institutions, met Thursday at the 36th ordinary session of the Assembly of Governors of the Association of African Central Banks (AACB) in the Algerian capital, Algiers.

Members of the assembly elected Governor of the Algerian Central Bank, Mohamed Laksaci, as the new head of Assembly of Governors of the AACB, replacing Reserve Bank of Malawi Governor (in this case Charles Chuka) —after his four years term ended.

Laksaci in a media brief made available to The Nation said that he will focus on “setting up monetary cooperation between the African central banks”.

“We have also to develop a shield that would permit the African central banks to face the repercussions of foreign financial shocks,” Laksaci said, in reference to the current soaring commodity prices in international markets.

Malawi’s economist Dr Maxwell Mkwezalamba, who is African Union Economic Affairs Commissioner said in a statement made available to The Nation that he was so far satisfied with efforts made towards establishment of the African central bank and one currency on the continent.

He said AU will continue to pursue efforts aimed at accelerating Africa’s integration agenda, working closely with the Member States, the Regional Economic Communities and other stakeholders.

“One challenge that we face in implementing Africa’s integration agenda, however, relates to delays by AU Member States in signing and ratifying the various related legal instruments.

“I call upon the governors on the continent to assist the AUC in advocating for the signature and ratification of these legal instruments, particularly the Protocol on the establishment of the African Investment Bank and the African Charter on Statistics, in their countries.

The ACB is one of the three financial institutions of the African Union (AU). Over time, it will take over responsibilities of the African Monetary Fund.

When it is fully implemented via Pan-African Parliament legislation, the ACB will become the sole issuer of the African single currency, regulate and supervise the African banking industry, and set the official interest and exchange rates in conjunction with the African governments’ administration.