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The Common Monetary Area
Common Monetary Area
(CMA) links South Africa, Namibia, Lesotho and Swaziland
Swaziland
into a monetary union. It is allied to the Southern African Customs Union (SACU). Although the South African rand
South African rand
is legal tender in all states, the other member states issue their own currencies: the Lesotho
Lesotho
loti, Namibian dollar
Namibian dollar
and Swazi lilangeni. However, these are exchanged at par with the rand and there is no immediate prospect of change. Foreign exchange regulations and monetary policy throughout the CMA continue to reflect the influence of the South African Reserve Bank. Of the SACU members, only Botswana
Botswana
is currently out of the CMA, having replaced the rand with the pula in 1976.

Contents

1 History 2 See also 3 Literature 4 References

History[edit] The CMA, enacted in July 1986,[1] originated from the Rand Monetary Area (RMA), which was established in December 1974;[2] the signatories of the latter were South Africa, Lesotho, and Swaziland.[3] The CMA has since been replaced by the present Multilateral Monetary Area (MMA) as of February 1992, when Namibia
Namibia
formally joined the monetary union. See also[edit]

African Monetary Union Eco, another attempt at an African common currency, within the ECOWAS community. The West African CFA franc
West African CFA franc
and Central African CFA franc
Central African CFA franc
(C.F.A.) are other existing African currency unions.

Literature[edit]

Jian-Ye Wang; Iyabo Masha; Kazuko Shirono; Leighton Harris (2007-07-01). "The Common Monetary Area
Common Monetary Area
in Southern Africa: Shocks, Adjustment, and Policy Challenges" (PDF). IMF Working Paper Series (07/158). 

References[edit]

^ "Archived copy". Archived from the original on 2006-11-18. Retrieved 2008-10-15.  SWAZILAND BUSINESS YEAR BOOK 2005 ^ "Archived copy". Archived from the original on 2006-11-21. Retrieved 2008-10-15.  African Studies Thesaurus ^ [1]"South Africa‚Äôs experience of regional currency areas and the use of foreign currencies", Lambertus van Zyl

v t e

Southern African Customs Union
Southern African Customs Union
(SACU)

Members

South Africa Botswana Lesotho Swaziland Namibia

See also

Common Monetary Area

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