Africa new currency

You're referring to the African Continental Currency (ACH)!

The African Continental Currency (ACH) is a proposed single currency for the African continent, aimed at promoting economic integration and cooperation among African countries. The idea of a single African currency has been discussed for several years, and in 2015, the African Union (AU) launched the African Continental Free Trade Area (AfCFTA) agreement, which includes the creation of a single currency.

The ACH would replace the existing currencies of individual African countries, such as the South African rand, Nigerian naira, and Egyptian pound, among others. The new currency would be pegged to a basket of currencies, including the US dollar, euro, and Chinese yuan, to ensure stability and reduce the risk of currency fluctuations.

The benefits of a single African currency include:

  1. Economic integration: A single currency would facilitate trade and investment among African countries, promoting economic growth and development.
  2. Simplified transactions: Travelers and businesses would no longer need to exchange currencies when conducting transactions across borders.
  3. Stability: A single currency would reduce the risk of currency fluctuations, making it easier for businesses to operate and invest across the continent.
  4. Increased competitiveness: A single currency would make African products more competitive in the global market, as prices would be more stable and predictable.

However, there are also challenges and concerns associated with introducing a single African currency, such as:

  1. Monetary policy: A single currency would require a unified monetary policy, which could be challenging to implement and maintain.
  2. Fiscal policy: A single currency would also require a unified fiscal policy, which could be difficult to achieve, especially among countries with different economic conditions.
  3. Inflation: A single currency could lead to inflationary pressures if countries with high inflation rates are not able to control their monetary policies.
  4. Sovereignty: Some countries may be hesitant to give up their national currencies and monetary policies, fearing a loss of sovereignty.

Despite these challenges, the African Union and many African countries are committed to the idea of a single African currency. The process of implementing the ACH is expected to take several years, with the goal of achieving a single currency by 2030.