African Unification Front
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Click: List of Major Banks in the African Union
AUF BANKING POLICY
ADVOCATING FOR THE AFRICAN CURRENCY BOARD
The African Union requires a continent-wide strategic plan for African banking. Therefore:-
The AUF is working for the establishment a the African Currency Board (under the supervision of the Pan African Parliament) to manage the national currency reserves of the African Union's single Africa currency and encourage international acceptance of the single African currency.
The AUF recognises that only the Pan African Parliament has the authority to regulate the amount of money in circulation. Moreover, the use of Fractional Reserve Banking and other unethical methods of raising money and accounting, must be carefully regulated especially in situations where transactions in public property may result in the disfrachisement and impoverishment of Africans.
The AUF works to ensure that all African regions have a common external tariff and a free market. The African Currency Board would oversee the central organization for monitoring trade flows, and for collecting decentralized and geographically dispersed data and provide uniform organizational information to African trade organizations. The organization's reports will reflect the geographical distribution of trade, services, or capital flows.
The AUF supports monetary stability and is working to move Africa into economic integration and prevent disruptions in trade resulting from fluctuations in currency exchange rates. The AUF is working to institute a single currency that is necessary as replacement for the blocked currencies of African states.
The currency board would strengthen coordination of monetary policies among African states and study and develop the infrastructure and procedures required for the conduct of a single monetary policy. The African Currency Board would create a mechanism to limit the fluctuation in the bilateral exchange rates against the US dollar and other currencies of regions with which Africa has trade, but especially with other African currencies particularly the Rand, Naira and CFA. The African Currency Board will also serve as the Exchange Control Authority and would maintain price stability across the African Union.
SUPERVISION OF FOREIGN BANKS
The African Currency Board would have supervisory powers over foreign banks by :-
· requiring African Currency Board review before a foreign bank enters or expands in the African Union;
· tightening the standards for entry and expansion by foreign banks and multinational corporations;
· requiring African Currency Board approval of African representative offices in foreign banks, and;
· requiring that each African office of a foreign bank be examined at least once a year by the African Currency Board's audit department.
ECONOMIC STABILIZATION FUND
The Pan African Parliament should establish an Economic Stabilization Fund - to stabilize the single Africa currency in times of foreign exchange volatility. The African Currency Board would retain 15% of the initial single currency issue, and would raise more funds through the sale of treasury bills and other acceptable methods, for the purpose of maintaining the Economic Stabilization Fund.
The African Currency Board will facilitate resources for shortfalls in export earnings or excesses in critical product (e.g., food. Fuel) import costs that are caused by factors beyond a region's control and which are temporary. Contingency financing would help Africans to maintain the momentum of adjustment efforts in the face of a broad range of adverse external shocks, e.g., changes in international interest rates or prices or primary imports or exports.
The African Currency Board will have the authority to investigate proposed or pending mergers, acquisitions, and takeovers by or with foreign persons to determine their effects on African unity and security. The President of the Pan African Parliament will be invested with the authority to suspend and/or block those transactions that lead to control of an African company by a foreign person if the Pan African Parliament determines that the foreign purchaser might take actions that would threaten the unity of Africans.
The African Currency Board will formulate a general framework of legal, accounting, and regulatory policies and institutions and procedures to assess foreign investment interest, including:-
· evaluation of direct investment in Africa in order to guarantee that any investment has a direct benefit to Africa, such as increased employment,and
· regulation of the movement of foreign capital in Africa.
INTERACTION BETWEEN BANKING AND OTHER SECTORS
Foreign Banks hoard a significant percentage of all credit destined for agriculture, infrastructure development and, grants and aid meant for use in Africa. As a consequence of international banking practice, African farmers are subsidizing the administrative structures of banks around the world...the African farmers' money generates interest while it whirls around the speculators firms and while it sits in the banks in Europe and America.
The Pan African Parliament should initiate a process of banking reform in Africa. African banks have to be able to compete internationally and have to be more accessible to Africans both in Africa and in Diaspora.
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