The Development Of The African Monetary Union

This study begins with a discussion of the theory of currency integration and cooperation, with particular focus on the analysis of the requirements of realisation and actual meaning of Optimum Currency Areas. Using the European monetary policy as an example, I have analysed the history of the establishment of the Euro and the European financial cooperation model. The European model is an effective case study to analyse currency and financial integration in Africa. I took a rather systematic approach to analysing the integration of regional currencies in central and western regions of Africa, taking into account social, economic and cultural aspects, clarifying the various stages of integration and identifying the advantages and disadvantages within the development of Africa's currency and financial integration as well as its sustainable development. Fundamentally, this study raises the point that all countries in Africa should work hard to promote the integration of their currencies, and indicates where all countries should make an effort to promote the African Monetary Union and the specific measures they should adopt: firstly, economic trends need to be considered as the basis for stable currency union, to promote currency and financial integration between all countries, and thus...