News / Africa
Single currency for Sadc countries
14 Aug 2014 at 06:55hrs | Views
SADC is likely to miss the 2018 deadline to introduce a single currency meant to cement regional economic integration, the bloc's director of trade and investments Boitumelo Gofhamodimo said yesterday.
At a press conference, Gofhamodimo said the bloc had a number of plans such as setting up a regional central bank but they were far from being met.
"The plan has been there for the region to have a single currency as a final step in the process of regional economic integration in Sadc.
"However, there are a whole lot of milestones that are still to be met by the member countries such as containing individual debts andsetting up of a Sadc central bank."
Gofhamodimo could not be drawn into suggesting a new timeframe in which the single currency would be introduced.
"While it is not possible for the region to meet the 2018 deadline, I can't be drawn into giving another date. We still have a lot to do as a region," she said.
Gofhamodimo said the region was working on a financial integration agenda aimed at assisting the member countries work towards converging the bloc's central banks.
"Member states should also limit debt. They don't have to exceed certain limits because they won't be able to finance their programmes.
We also have three key indicators which we look at such as the ratio of public debt to the gross domestic product and ratio of the fiscal deficit to the gross domestic product and inflation," she said.
On inflation, she said the region had done well to move from double digits to single digits.
"Now the inflation is between 3-7 percent in a number of countries."
She said trade in the region had grown from $13 billion in 2005 to $58 billion in 2012.
At a press conference, Gofhamodimo said the bloc had a number of plans such as setting up a regional central bank but they were far from being met.
"The plan has been there for the region to have a single currency as a final step in the process of regional economic integration in Sadc.
"However, there are a whole lot of milestones that are still to be met by the member countries such as containing individual debts andsetting up of a Sadc central bank."
Gofhamodimo could not be drawn into suggesting a new timeframe in which the single currency would be introduced.
"While it is not possible for the region to meet the 2018 deadline, I can't be drawn into giving another date. We still have a lot to do as a region," she said.
Gofhamodimo said the region was working on a financial integration agenda aimed at assisting the member countries work towards converging the bloc's central banks.
"Member states should also limit debt. They don't have to exceed certain limits because they won't be able to finance their programmes.
We also have three key indicators which we look at such as the ratio of public debt to the gross domestic product and ratio of the fiscal deficit to the gross domestic product and inflation," she said.
On inflation, she said the region had done well to move from double digits to single digits.
"Now the inflation is between 3-7 percent in a number of countries."
She said trade in the region had grown from $13 billion in 2005 to $58 billion in 2012.
Source - chronicle
