Monetary stability and regional currency board: towards a two-tier system to accelerate regional integration in the Horn of Africa: a policy proposal

Moustapha Aman (1, 2) , Nikolay Nenovsky (1, 2)

1 ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique
2 LEFMI - Laboratoire d’Économie, Finance, Management et Innovation - UR UPJV 4286

The last few decades have been marked by a proliferation of currency union projects in Africa. In a context of exchange rate instability and poorly convertible currencies, the authorities in most of the countries of the Horn of Africa are looking for an exchange rate regime that can stabilise and develop their economies. To achieve monetary stability in this sub-region, which is at the crossroads of some of the busiest sea and land routes, this paper reflects on the potential benefits of a monetary system that is characterised by a two-tiered architecture: national currencies and a common currency governed by a regional Currency Board.

Mots clés: monetary regime; Currency board; Central Bank; Horn of Africa JEL Classification: C01

Domaines: Economies et finances

Moustapha Aman, Nikolay Nenovsky. Monetary stability and regional currency board: towards a two-tier system to accelerate regional integration in the Horn of Africa: a policy proposal: Munich Personal RePEc Archive. 2022. ⟨hal-04084421⟩