M.Comm. / The purpose of the dissertation was to determine the appropriateness of forming a monetary union with a common currency within SACU. SACU embodies five neighbouring countries, who are situated in the Southern region of Africa. These countries include: South Africa, Botswana, Namibia, Swaziland and Lesotho. The benefits and costs that might accrue to the SACU region with the formation of a monetary union were highlighted in the study. Past experiences of European and African monetary unions have shown that countries who participate in a monetary union were able to pursue credible and disciplined monetary policies. Fiscal and monetary variables determined how appropriate it is to form a monetary union within SACU. The study analysed the level of convergence of fiscal variables and the comovement of monetary variables using statistical analysis and graphical representations. The analysis was essential in assessing the readiness of the SACU states for the eventual formation of a monetary union. Since countries such as Lesotho, Swaziland and Namibia are small in terms of their respective populations, sizes of their economies, per capita income in comparison to their neighbours such as South Africa and Botswana, the study highlights the fact that regional monetary integration is a useful way of increasing their economic influence and participation in an increasingly globalised world. The study concludes that the formation of a monetary union with a common currency within SACU is feasible and provides some ideas for further studies.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:6626 |
| Date | 23 February 2010 |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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