A trade expert has charged members of the Africa Continental Free Trade Area (AfCFTA), to adopt the US dollar as a common currency for trade.
Richard Ampabeng said it will facilitate transactions for the free trade area which is expected to become operational by January 2021..
He said a lack of common currency for African nations will not hinder trade, noting trade in the world currently revolves around the dollar, pounds, yen and the euro.
"Given the nature of our economy in Africa, again the fragmentation of African states, it's a bit difficult to talk about a common currency now,” he stated in an interview on Joy Business Market Place segment with Sandra Esinam Afenu.
According to him, the AfCFTA pact is not distant from the World Trade Organization's (WTO) rules, making the case that about eight members of the European Union do not use euro but trade in the EU market.
Africa on August 17, 2020 officially unveiled its single market secretariat in the capital of Accra, Ghana in preparation to officially commence trading after several postponements due to covid and other bottlenecks encountered by members with regards to trade agreements.
Most currencies used on the African continent have been battling against the US dollar over the years with some volatile economies like Ghana which plays host to the AfCFTA, setting up an FX committee to investigate the cause of the free fall of the cedi.
The South Africa rand and the most populous nation on the continent, Nigeria have had its currency, the naira depreciating against the US dollar.
Many have raised concerns over the status of the West African common currency the 'eco' which has never seen the light of day.
"Those of us within West Africa could use the eco while trading with other member countries" Mr Ampabeng added.
He believes it will be better for trade to commence while member states work with a common currency other than the dollar in the near future.
He again stressed on the fact that not all countries will be ready before trade starts, hence the 26 countries that have signed onto the AfCFTA pact should go ahead to trade while the rest [28] join later.
Latest Stories
-
Passengers appeal to transport operators to officially announce new fares
9 mins -
Damongo: About 400 NPP Members resign over Minister’s alleged meddling in chieftaincy affairs
34 mins -
Next NDC government will pay special attention to women – Naana Opoku-Agyemang
43 mins -
Amerado is singing and it’s good he’s doing that – Lyrical Joe
52 mins -
NDC government will establish a Women’s Development Bank – Prof Opoku-Agyemang
59 mins -
My selection is an affirmation of your belief in women – Naana Opoku tells Mahama
1 hour -
Our ticket will be a pair of experienced individuals – Mahama assures
1 hour -
NDC officially outdoors Prof Naana Opoku-Agyemang as running mate
1 hour -
+233 hosts Int. Jazz Day concert on April 30
2 hours -
Farmer arraigned over threat of death
2 hours -
Education Minister unveils new uniforms for basic schools
2 hours -
8th Ghana CEO Summit scheduled for May 27
2 hours -
Leaked intimate video has severely embarrassed me; I’m sorry – Serwaa Amihere
3 hours -
Poll results alone don’t constitute victory for any political party- Asiedu Nketia cautions NDC
4 hours -
Gyakie spills truth on her journey to fame
4 hours