(0) The transfer of ourrenoies in and out of oountries is restricted to oertain resident and non-resident persons or businesses,

"~..^",-,-'

(a) The spot and forward purchase of foreign currenoies isrestrioted to oertain resident and non-resident persons or businesses,

foreign cur-r-e nc Lea and areas •.

(b)

The immediate sale of foreign exchange received by resident persons is compulsory and is restricted to sale to banks ,in

the country cf residence.

(0) The transfer of ourrenoies in and out of oountries is restricted to oertain resident and non-resident persons or businesses, currencies and areas;

J.

(d) L.r -,

The. u,ses of foreign exchange are restricted to .certain

r.esi-dezrt and non--resident persons and businesses .and certain

specified purposes.

wwnw'-r

",<:~:,' .

;(k) Tii~' ci;';ners'lii~:of

:foreigneii:ihahgeis restiic'ted'to oer'ta:Ln resid.ent and. non-resident persons and busineifies':iuid to certain

• "'quanti t,ies:."

(r) Arbitrage transactions are restr'tbiediocElria:inba'nks and 'exo'hangedea]rers.

65. The balance of payments of all African coiiiJ.'tries' "would undergo

sub-"S'tatlitiai1chaftg'fsj ,1;f the'"abeve merrtd.oned :siex restrict,ions:were rEfmoved and all currencies enjoyed all the freedom of the Lib'lIJialt:currency, J;f tb,e, ,eventual ,rell)o;va,l,Qf "the unfreedom of African currencies were strongly

-C·,,'~;',;,,; ":','''~_;':'.'''','',,,'"\, .;":;i:,":·:'" '.' <",.. ",,'" ,:,~L ~';'.:". ' j ' ; , : ' "

~de~i~,?q, ,an4frioan

Payments

Union wo~ld be a sine qua non.

'):''-^{' , '}.', '." ,::,'..,.". "',). '. ' , ' .',

66. Here a much more .modest gooj;l':wo:uld suffioe, since the prilllar;y:,cPl:l:!;,:,rn is with removing obstacles to multilateral trade,and paymentsI; the goal

~:':..~.,::..::...~-~...._...~'-'~~.;~~.",~.:.~~~' ~f-~_..~L~L:~:;,<;::S~, ,~'~'"

': ':) ;': :: ,,'.

must be much less than monetary freedom. The mimmum requJ.rement "iInoU:Td

b~' n()u-:.f~t'te;cid

t:r:,inkierabili ty' fortracifiigiinillegi tima te development"

" ',....". ....,' _,..'..

',"':; J_

.,' J ,',;'" :

~~)," ,ll,py pusi:qe&S, whi,ch wants to iI!'vort !>'oods and service~,because

.' '":"~. :::;1'-'~i' .' "

--+j;1!~'Y,are" c9lllpara,j;ively cheaper and, of better quali tythan a

:',;;.""';"':'::\,'.;.1,; _.:,::~ .. '!.''-;':''.~.' :~:. ' . "'.: . "::.,.'- " " .. 'J,'::'-, \ , " ; '

home product has the right to buy the necessary foreign ,ex-change and use it for any imports whatever, including transit

'tf;;'d~'~

:"

^{i: " ,J ,}

:i: ~';,bTOlJE" J.:'.'.1.:( !J t. '.;'

.".j.r

- , U :

\?);i:;~p;\'::.~f~~~:"8,w~i?h

wants to export or

7'~-exp~;rt

^goods

services bec~use it gets higher prices abroad than at

,~;-·'.'.l',:·: ',~r:,'-; "',\" "',',:' . :'.:','-"',,. . ,'. . ,; __ ", 'i"

",,:~}1, s~Jll'herever it likes.

"'. ,

or

", »c

home

•

, C':

.(¢:)

AnyLaarher' ofincol)l6' ,c"n tr"nsfer to ,arrY,' 'fgr"eign; ^c01,1nt r ;)'; ;f3:J'lY:

" , parkof it.' he:l:j.kes for: consUJIlpt:J,on,Q,r"inve:"tE'Efnt there,.; ,,[

ta)' ~b~ri~'f"bf'ba,p\iialhan

transfer i'tto, and

'ih've'si'

iiiri;

arrY foreign country when'he _ei~ects a'higher:rate 'of return ,cr and: more'.oapi taT B,eJ;:,1li'i ty.

67~ 'Thi~"i'hiin

is'th'Eia:erYrii tion

of'iIDfettered'jiransf"ra1iiTitY~'Tt

differ~'nom ,ibsih:utehciriVie~i;ibiiii;y'a~d Ueedom of c'lirrency in ,the ':-~f':b'J!i'6'wrhg-:'::r~e's~~t·s·~·;\

..

_._~~"_'

;,

E!CN.14!WP •. 2!4 E!CN.14!ANA!12 Page 34

(a) Many _person~ and _~usi~essesare not entitled to buy foreign exchange.

(b) Neither persons nor businesses

(e~cept

banks) are entitled tc own foreign exchange •

...'

(c) Neither persons nor businesses are entitled to export cr to import currency.

:,

..

^{- ,}

. (d) Many persons and busi.nes~"s ?>re exclud.ed from arbitrage. ti-ans-', . ,actions",.

68. In what foll'O'ws the 'position is examined whether unfettered trans-ferabili ty 'exi's;J;;l-L.in,;:il!i:rican countries, or to .what extent it is restricted '·legally·qr by admi.ndstratLve or commercial practices •

. 'Second :_~urrency area, The Franc 'Zone

69. Imports of goods and servi~e,:; from, arid export to, :any country in-side the franc zone generally do not reqid:fe' impor'ti"or'export Li.cences , There is free transferability within the franc zone for these current transactions. Capital movements inside the,franc zon", are generally also free. Hence, thereis'Lmultila,teralization of trade and investment inside

the franczene.·

-,^.',

70.

"';,

Imports from outside the .

ii-i.';;":

zone including EEC countries, require an import licence. These are often granted within glObal quotas for imports from ciutside the franc z one , : There e.xist in a,llFrenoh terri tor-ies remnants of war-time discrimination against imports from non-franc zone souroes. In all franc zone, countries ther.e exists, however, a strong administrative discrimination against no z--f'r-a.nc zone imports. 1fuatever importsfr;om, these. sources are permitted az-e paid for via the foreign_{- . . ! . . .} exchange ,markets in France. Capi~al movemen~s between france zone and

•

the outer world are strictly limited. 'J. ..".

71.

French francs earned for exIlo,r;ts inside the frano zone are de jure exchangea,ble _~or any f2r~igncurrertcieson non-resident account. For

reside~t"'p~rsoiisariff

busfnes ses

tran~ferability

^depends

Coli

exchange

control permission. Hence, we may Bay tha,t the de.faoto transfera,bility

, !!'W¥ ·x ^{'WEf' -} K%f'W1&frMI'

EjClh.l.' _4/~ .• 2/4

E!CN.14!AMA.!J.2 Page 35

between the franc. zone and the outer world is limited. It is wo~thy ~f,'

- , ',~,. ., . .,.."" "".",,'"'-., '~''''?''>-'

ncte that no African country using CFA franos had established par values witbihe InteJ:'natio:hai Moneit..J:.y FtindlW

15

April

1964:

:... "

Third currency are13,L ~~ St~rling area

, ' " , " , ' . . . ,

72:.:.

Th!l,,§~,i;U13,ticnis s.:j.milar t,Lthefranc, zone. ·"The chief, differi3nce : ' , ccnsists . i\lj;!1i3 gr-ea ti3r si:oe' of: the' sterling ar-ea , Thus,'; multilat~ral'" ,·,t trade Lnsi.de the sterling area means trade with about.

890 ..

Illillion people", -.,

',:',: '~)"-,, '. ; ; ":.':' 'r - ., > '[" , ' ' ' : : ::.~ ^{. : , - , , ' ,}

whereas trade, inside the franc zone means trade with onl;v"Jl,?: mj,lli,?¥ , j

people: MeJnbe:rship of the sterlingarea inJ ts p;t'ys,?nt form j,mpl:j.es no obligation in favour of themi3mbers.q:f' the ar-ea,

~'!,.,1-':}:,,'.,,:Y':':'~ , ..~,

•

73. Th"".1;Tnited E::j.ngdomhas elimin13,.ted 13,11 curz-ency discrilllina tidti

against impQrts f)::Qm',nQJ;:;±sterling areas. There e.r-e:nos few independent·,.u

':,";'-over'ie13,sli'tfjrling '13,:re13,·.oountrifjs, whioh allowsterli'hg payments to Other,"

ste:rling ar:ea r~,~~dentsiVi,thoUt ~ny contf8J~h~tev<;l:r,,'.I'here are :rell),ll-ants 0r..,~~~time disorimination aga,,:icnst iml'0);'ts f:rom non-sterlingsQ1.l.Ijpj's.

and sOJne stfjrling qQuntries, but, the!,,, has byi3n a ~<3,~U101);'et1ll'n to non-discrimination against non-sterling cOl,IDtries,., . Capi talmOve,l)li3nts from_{, ;.' ':' ':' ,. '.} -",,' ''I' .": ':; " .; ; - ,';', ' .:.,~... . ,,~",: '. .' ", .,'~ ., ",: '.:'. ' . ,'. ,;' .. : , '. .

sterling to .. non-sterling :o,?untfies .arfj, ,!l,o,wever l,stri otly corrtr^oLled., .''" .,.

74. Sterling earned for exports inside ihe sterling,irea is de jure ' . exchangeab'l e for a;'Y fsr;eign;owrencies .ori non-resid"nt acoount , For

.,',.

resident Pi3rsons and busini3sses ·this transferability depends on exohange

:" , ..:,,, ..J; :' '",.':'r,~ ,tc' ..~ ", .. - ; • , , " ' .. :',:,. ".' , ' . ' . . , . '

conti"Olpe1'm:lss:lon. .!J;ElYl,ge, we may say, as Ln the case afthe.fr,'1onczolli3y

"',' ',,; . ' , , ; . ;,'

that the de, ,:f.acto. transfe,rq.b:lH ty between_{, i '} : " ..','" ' - , ' .. ', ; . , ; , ' . ' ,

tlw

S1;i3;t'l:lXlg zone and the cuter, world

Ls

Um:lted. It i8;f,t1I'the.r:worthy of nOrte th,at by

15

AprU

1964

"'. .. .'" .. ', ' . " , , , , , .

par values had not yet been estabUshe9, for .East Afr:\'C.iW SterHng and_{-;i-.: ' . , .... ,,' "}

n , . . , , . ; , , . , • . ' , " ,

West African pounds w:lth t1w Intern13,t:i,9nalMonetary Fund •

n,!."

Fourth Currency Area

75.'

The 'Prdiuguese arid

Spa:ri.:l~ll'

o6ronial currency area. In this area'if/, both statutor:lly and

adrrtinf~tJ:'A~l.~eiythereisstrictdisc;imi~atiori

against other currency areas in trade and

inv~'~'tin'ent.~l1~ transf~;~Jii­

Hty bet~een theS€l two co]:oriialterr:liOries;and the duterwor1d

isihe'gli-gible. ^;:;,....

~, ,.

, ::--,

76. This is a he tC)]:'Qgeneo1.'s af~a comprising oountries with J,imited"trans"

ferabili ty.' 'Some have broken away from ourrenoy areas, Algeria, GUinea Mali, Morocoo, Somalia broke away froJiftJiefranc

zon~;B~ilrid{'anir~wa:iicl.~·

and Congo

(teid.)

from 'the Belgian zone,tTARfromthe sterling' zone: Others have'hadari'ind:ependent pastto'whi6h they returned 1:I.keEthiopi~.

77-;

1n'a11

ilie~e

^{couniiies Lmpor-t}s are strictly oontrolledi:.sua:lly by both imporii

lic~noesa~d,

^{exohange Lf.cenoea , E:x:p}0:: ts , are,o<;>ntrolled

; t \ "',:,.;';

usually'oy both export and exohange lioenoes. Ca:

p1tal

movements are striotly oontrolled. No free transferability exists. The exohange oontrol isusualiy'lilanaged in· such a way as to preserve the foreign exohange value of the currenoy. This is done by direoting ex:Ports to convertible cur-rency oountr-t.e s and impor·ts to soft cur-r-ency countries •.

78.

·'The' _oredito~

^nations

_in'Afric~

need not be afraid that granting of

au.t6mi'ttioc:r'edi is' to Afrioandefioi t nations in the oourse of intra-Af:d.oa:ntra'de ';'ouldinvolve them in any sLcable saorifioes. In1964

,.,':

of all thecurrenoies belonging to this fifth group, par values have been arranged:

r..iiththeI~i~rnationaJ.

^Monetary

F~nd

only for the Ethiopian and Somalian.:,:ouri'enoies'hylS April 1964~·'

---, , ' , "

79. The

ov'er:c.a.iYI!~i6i;Ure

of the Afr{call foreign

eX~harige

system is,' there-fore'/'litia

oi:liinite~'de'facto

trarll;ferability, and a somewhat wider de

jU'r'e'transferability. 11,:£s, however, de facto

tra;~ferabili

^ty

Whio~

oourrte, None of the

Africa~ curre~oies

had aohieved article VIII Status (oonvertibility') under the rules of the •

Intern~t~onal JIlonetar~Fund

I • ^by•

-.-15 April' 1964.

MOi'eov~;','

'Ie must remembe; the basio inseouri ty of the system. If the foreign loan~'and grants were muoh reduoed or perhaps

stopped; if the terms of trade would sUbstantiallydeteriorate; ..l:f::'._-~.'.

.'J.,_:_-extreme" a)l-\n9hywer~,:being puraued by, .the other oontinents, Afrioa,woul~

be thro~n o~ her own res~u;roes. Intra-Afrioan trade would have to be substi tute,d for inter-oontinental trade.

80. JbJnumber of African countries' would be detioi t' count:i:'ies, very probably even ohronic ones. If a well-functioning payments union were; ["

"

•

ElcN.14/'t1P'.~/4 E/cN .14/AMi!12

Page 37

•

"

then in eXiste~ce, thiswouldJ:lot present much of a proplem. The credi-tor

countries~i {~~d:'i~g

^a

sh~re'~f

their credit balances to the payments

,., .urdon could finance, the 9pntinued impbr,ts' from themse!ire's 'te'the deriei t

~","_" '"' ;;. , , '-.' c.. ' -' ~''''.: '" L '. ,,' • • - •

""" ,?9unt~il?s. ,Thl?se would, get tl:l.eir bad'lyneeded' imports'fNm'the' cir-edi tor ,,991,mtrie'l' "Th,el'e, in, tU+nj wo"ld, keep' their expo:d industrii,s going' which

.,,..^~,. - ,,-" '-',".'. ..' " .

'-.-: i ~?Y:t~ q~:Ile;rwi!'leq911apEl'!""'"

'" .

81" The benefits to be deri-ii"ii fronia pa;YmElhtiJ'uni6b.' do

not,h~wever,

:. .' _ ,', e',',

,,'

/B~\i :w:tth"tltiEl~ ;.,.A,,;payme,nts union,is 'In organi'zaticin throughwhioh central qa.r),k!;l a.n~:\,ina.nce ,m:iJ"i'l1iries oia11 :Afrioa.n StatE's have to bein6bnstant ,t9JJ.oh '{ith ,'9.aeh"other" ):leeome aware ,Of .each otheJ'i' sec'onomie pr6'blenis

.: ••-,.", ",'," , ••.., ; ' ','<" '• •- :,., . - - - .. , •

",a.,Ilo",c()-op,e:t;a,,;l(e,

;tp,

sO,l'1e "the,m. A payments [union' i'flhenC6 One of the"major

:; "'7 ",".' .,"_,"." . ' '-'" "

.-,in1iltrumentS,forpre,atingAfrioa.n eoonomic'unity.';

-c-' ':..' i. - '.c.: :.. ' ",_; '", r'.!" - • '" ~ '.- '.

_.. " r" .

"~" • • , 'r" '

, ,-,~

:·i

• I " '

•

. ""

.; ^'

-,.

:t ',: .', ^.";;"',.'^,

,,".:<'-.

.,"'

...

E/CN,..

1..

4... /.\olP...• ^{2 .. /... 4}

-S/CN.14lAJ#!12 Page·38 ..

CHil,P T.ER V

,. . ^{~.- ,} '

Dans le document Conf6rence of Governors of African Central Banks (Page 36-42)