South Africa and Southern African Monetary Union: a critical review of sources of costs and benefits

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Periodical article

Title:	South Africa and Southern African Monetary Union: a critical review of sources of costs and benefits
Authors:	Khamfula, Yohane Tesfayohannes, Mengsteab
Year:	2004
Periodical:	South African Journal of Economics
Volume:	72
Issue:	1
Pages:	37-49
Language:	English
Geographic terms:	Southern Africa South Africa
Subjects:	international monetary relations monetary areas SADC
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2004.tb00103.x/pdf
Abstract:	This study analyses whether or not it would be beneficial for South Africa to join the Southern African Monetary Union (SAMU). It dwells on the main sources of costs and benefits and the role of IMF/World Bank Structural Adjustment Programmes (SAPs) in the event of South Africa joining SAMU. The most important sources of costs are prevailing differences in inflation rates among member countries, the existence of parallel organizations in the southern African region, and the likelihood of member countries not committing to SAMU policies. On the other hand, expected gains include transaction-cost savings, increased trade and economic integration, and reduced uncertainty about the exchange rate. Bibliogr., notes, ref. [ASC Leiden abstract]