Thoughts on South African and international politics and culture

Thursday, October 11, 2007

Tito rightly mocks the African common currency
I can't believe the ACB is still seriously considering this. A while back I wrote about the plans for a United States of Africa, which included the single common currency. The USA (United States of Africa) seems to have been shelved, but this single currency idea is proving more hardy.

There simply is not the economic stability in Africa to afford the luxury of a single currency. People may point to the success of the Euro, but this is patently different. African economies have huge variances in size, complexity, sophistication and history, and there is no way that a single currency will prove advantageous (least to South Africa) within our lifetimes. As Tito Mboweni states, it would be “a laughing stock”.

Please guys, let's focus on regional trade blocs and regional inter-dependencies, and leave the single currency for our grandkids... or maybe their kids...