Thoughts on South African and international politics and culture

Tuesday, July 12, 2005

Common Monetary Policy in SADC
Though it's a long way off, the Business Day reports on Tito Mboweni's discussions regarding the development of a commom currency in the SADC. The SADC comprises SA, along with Angola, Botswana, the Democratic Republic of Congo (DRC), Lesotho, Malawi, Mauritius, Mozambique, Namibia, Swaziland, Tanzania, Zambia and Zimbabwe.

I do have a concern about a common currency. Even in Europe, with stable economies and fairly homogenous economic policy, the Euro has had a troubled introduction. Extrapolate this to the SADC, with calamitous states like the DRC, Zimbabwe and Angola, and you begin to see my point. I'm not sure I would like to be sharing a common currency that would open us up to the fair winds of investment and risk perceptions as one consolidated currency unit.