African Central Bank governors, under the aegis of the Association of African Central Banks (AACB), has fixed 2021 for the commencement of the African Central Bank (ACB) in line with plans to reduce inter-country transaction costs as well as exchange rate volatility.
The decision was contained in a draft framework which is being considered by the committee. The move according to the association would also help to entrench macro-economic stability, ensure cross-border comparison of prices of goods and services as well as enhanced political solidarity through shared vision of prosperity.
Other benefits of the ACB are to strengthen monetary transmission mechanism, reduce cost of borrowing, ensure foreign exchange savings and wider access to markets. The framework, however, listed loss of sovereignty to a supranational body in the conduct of monetary and exchange rate policies, economy without political union as well as the possibility of revenue loss from common external tariff as some of the economic cost of the bank.
To ensure a smooth take-off of the bank, the association on Monday, began a three-day joint strategy meeting to consider the draft document for its operation. Speaking during the meeting, the co-chairman of the association, Dr. Rene N’ Guettia Kouassi, said that once the draft document was approved by the association, the final proposal would be submitted to the General Assembly of the Central Bank governors in August.
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