Final report

UNITED NATIONS

ECONOMIC AND

SOCIAL COUNCIL

Distr.

LIMITED

E/CN.14/AMA/16 13 September 1968 Original: ENGLISH

ECONOMIC COMMISSION FOR AFRICA Second Conference of

Governors of African Central Banks Accra, 7-13 August 1968

FINAL REPORT

M68-1228

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E/CN.14!1JIA!16 -

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FINAL lU;"'POB:l'

-c'- The _Sec~rieCGonference ^of Gove,morsof Al-rican Central Banks Has held in Accral,<lha!)J;l< f'r-om 7 to 13 AugUst 1968c -

1. Opening addresses were delivered by Lt. General J,A. Ankrah. Chairman of t11e N.L.C. of Ghana and b'",f _~Ir. R,K.A. Gard;.~.ert Executi,ve Secretary ot"-'t\le Economic. Cummission for Africa, . Th" te:c-t·s

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these addresses are attll.cl1ed.t" the present repuri: as Arneltes I and II.

A. Attendance

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2.. 'Tlle Jii,e,eti~'waf! attanded by _.representatives of 20 Central Banks and analogous instituthms. Represehtatives' of the ADJ3 and IDEP also parti- oipated in the Conference. The list of the participants and ~f_the Con- ference dir~ctorate is shown in Annex III.

ll. Orgaiuzation of work

3. Representing the Governor of the Central Bank of Ethiopia who was Chairman of the first Conference, Ato y" ;,ossen Mangasha presided over the openi~ coremonies and the. election vf officers. The meeting unani- mouS1;y elected.MI.' •.X.H. Frimpolig'-.Ans:1Iij Governor of' the Bank of Ghana, Chai:rma:rij Mro Said Mohamed Ali, Deputy lI'JaIlager of the National :Bank 0f . Somalia, First Vice~airmani and Mr, Aunauth Beejadhur, Governor ,,1' the

lla."lk ,,1' Mauritj.us, Se,COn& Vice..,chairrna:n. The Ch3.irm-m, in accepting his election, also formal~y Atlcomed th~ delegat~ons en behalf of the Bank of Ghana and put forwarci a r.umber elf suost antt ve pr-opcea.Ls on the questions before the Conference,

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Ado

ion of the Menda , Agenda

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4. The, meet:j.ng had before it the p!'ov:i:sional agenda prepared by the . Secretariat (E/CN.14!AMA/15; 10 June 1968) and th:fs W'l.C adopted wi:th the addition ,bi'an item on ·the training of ba..'1king I:srsonnel in Africa•. The

"genaa is ."eprod1-\ced .Ln Annex IV. . .

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D. frican Central Banks

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5. TheWre,6j;~r,of the Division,of Trade and ·Economic Oo-oparat Lon of the EClj. Si!c"eta;;'iat introduoed Agendaltem 4 - the Association of African Celltra:l Banka - ,Jith a statement outlining the background to tte proposal to form such a~l Ass oc.; at ion and the -documentation presented to the Con- ference

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t11is SUbject. It was emphasized that the Interim Joint Cccrnmittee composed of officials from the ADB~ IDEP and ECA had attempted T-O draw

out the. consensus of -. Jliewsa.mong member Banks on the structure and func- tions'

of

the pruposed Association. The revised drat't ki·tiCles were to be examined with a view to affo'!"d.ing menibez's a chance to decide what compromises towards each other's views would be a~ceptableHhile building up au Associatio41 that would be effective 2S '11". ~llstrument cof inter- African DlOnetary co-operat a on,

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6, In a general discussion the delegates unanimously endorsed the proposal to establish the AS13ociation. 'l'hedifficulties that had to be resolv,ed before this consensus could be turned into an aoceptable instrument' centred

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(a) the hesitation of the governing bodies of some Banks regardilJ,i , any institutions "hich could appear to be attempting to decide"

on matters that the governments strictly retain within their own

compet ence ; ,.

(b) the desire to combine a maximum of informality in the operation of the Association with the maximumcf ~rga.nizationwhiqh was necessary

to

^{make i t} a distinctive and effective body; , (c) how to reconcile the need for research and other activities in

support of increused intra-African moneta.ry~cq-qperationwith the general feeling among representatives that it was premature to contemplate the establishment by the Association of its own

cadre of personnel; , '

'(d) the desire to keep down the financial obligations that member- ship of the Association ,would entail while ,assuring- that it met frequent'ly enough and conducted serious, bUsiness',',

(e) the general' agreement to avoid duplication of the work of other Af'rican and international institutions while at the same time keeping the Association independent;

(f) the problem of the existence and the activities

er

the . Association for existing relations between some member countries and banks, and between Afric~~ c0untries and various non-African countries.

7.

It emerged from this discussion, to which a number of observers ana.

consultants also made a contribution, that there was a general preference for a simple and inexpensive organization with the'potential to grow in structure and size as the evolving conditivns of inter-Af'rican economic co-operation required. At the initial stages the emphasis should. be on a maximum of contact between the members under conditions which would

enable them to discuss their common problems and experiences without hesita- tion. The Articles should nct involve any commitments by members on

questions of policy or monetary operations, but the Association should provide a framework within 'Ihich arrangements would be made in the f'trture., ,

8. The Annex V.

Articles of Association that were finally adopted are shown in The agreed te.i<t:

(a), established the Association itself and its sub-regional Committees and Executive Committee;

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(b) prvvided for the possibility of establishing the technical organs of the Association suoh as a Seoretariat and a Research Centre;

(0) made provision for the carrying out uf activities in oonnerloll.

with the formal establishment of the Association and the promotion ,jf its aims and funotiuns;

(d) assured that aooession to membership of the Association would

;involve the member Ballks in a minimum of expenditure at the initial

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(e) envisaged the formal ooming into being of the Assooiation by the end of 1968 and the hvlding of its inaugural meeting before the end of 1969.

9. ~f'ore' ending its discussi0n of Agenda Item 4 the Conference noted

t~ invitatiun of the Governor of the Bank of Morocco to hold the next

meeting, which would be the inaugural meeting of the Assooiation, in Korooeo.

E. African Payments Union (Agenda Item

5)

10. The Conference disoussed Agenda Item

5 -

the question of inter-Afrioan

p~ents: Afrioan Pa¥IDents Union - on the basis of the doouments presented to the Conferenoe (African Payments Union E/CN.14/'tfP.2/4; E/CN.14/AJAA/12};

(Examination of Observations to the Afrioan P ments Union, E/CN.l4!wP.2!4/Add.l;

B .14 AM! 12 Add.l and the introduotory statement by.the.Direotor of the Conferenoe. Previous studies on the question of inter-Afrioan pa¥IDents

bad

been oonducted on the basis of resolutions of the EOA, the OAU and o'ber organiza.tions whioh had all approached the subject from an all-African

point·oi'view. It had,howeve~been recognized tha.t at least at these initial 'stages it would orlly be of practical interest to construot formal p~entB

or olearing '!leohaniSDls among varioue eub-groups of African oountries whioh alread,y oonduceed a substantial volume of trade witil each other.

11. The meeting'showed a general preferenoe to have this question tackled inttspractioal details at the sub-regional level. Within each sub-region it

was

also reoognized that the trading and other eoonomic relations

between the member oountries were not of uniform 'oharacter either as to the volume of transactions, the banking and trading channels available, or the legal and administrative oonditions under whioh the eoonomio oontacts are oarried out. There were also a large number of countries whioh would . have to make p~ents or olearing arrangements with neighbouring countries

whioh belong to other sub-regions. The' existence of different currency systems within each sub-region provided another point. of departure foX'

,Gonsidering what solutions were feasible.

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Page 4

12. As ..tothe types of .al'raDgements tl1&t might be made, a, general 'prinoiple that was recognized was that these spqu;J.,d be no more elaborate tll:an was required to servioe the volume .of tr'ide' involved. However, when more than a few countries attSJllPt'edto establish free trade areas or ooiDmPli lIlliirkets

it:

beosme advantageoUs and necessary to have a degree of forlnaliillat10n.:in the system and to'multilateralile the pa;yments. The fol'lllU1asthat were' considered accordingly ranged all the wa:f from :the simple opening of Mcounts between central banks, withor without an element of credit, through clear-

r~;abdpa;vmentBarvangements and finally' to full monetary )U1ions. The al'raDgBments that were made between different groups of oourrtt':i:es should be capable of being themselves connected as between one group and another so that· they would not become further lines of diVision but

woUld

rather represent, the first steps towards an eventual pa:frnents system for the whole

of Africa. .

13.

It was generally agreed that the data in the Secretariat documents might be up-dated and some more informati\ln concerning the actual trading and pa:frnents si~ation of the different countries elaborated, together with a more oompletedooumentation of the exohangecontrols and procedures in force in different countries. The problems posed

qy

the existence of different. customs regimes for the liberalization of Pa:lments shouid'also be examined. This.material would be remitted to the Sub-regional Committees of the Ass.ociation for their stud;y and oomment. The ECA would carry out . this wor~ in collaboration with other agencies, in particular the IMF, and with the help of the member Banks themselves.

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F. Training of bank personnel (Agenda Item

6)

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Agenda Item 6, Training of be.nk pereonnel, was introduced, with a state- ment

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the representative of the Central Bank of Nigeria whioh had,pre- Viously made an' offer to be host to a seminar type of trainingoourse aimed at management personnel in the middle to higher grades. The experienoes .' and the facilities available in various Central Banks in Afrioa were de ...

~r~~de~the Conference also defined the speoific oharacter of and the reasons for separate training in an African context. This tra.1ning would aim to.make banking personnel more familiar with the experiences and p~

oedures of. neighbouring institutions and also,

qy

increasing personal COn-

tacts, would make int.er-bank co-operation at ,the operational and managerial levels more.sasy .to achieve.

15.

It .was . agreed thliLt the. Central Bank of Nigeria should proceed with th.e organization ,of a short training progI'aIDlIle for senior llanking personnel, oalling on the assistance of the EOA and other international II&Bnoies as preViously enVisaged. Owing to the language difficulties it would be pre- ferable to run courses separately for Frenoh-speaking staff although .an "

each course an attempt should be made to familiarize bankers using the one system with the details of the workings of the other system.

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Q. Signing of the Artioles of Aseociation

16. The final text of the Articles of Association as unanimously adopted by the Conference was signed or initialllld^by representatives of 12 member institutions whioh had a mandate to do so in the afternoon of Tuesdq, 13 Au8ust 1968. The original copies are to be left open with the Executive Secretary of the ECA who was appointed as depositary for the signature of the eligible institutions up to the 31st of December 1968. The depositary is to inform all the signatories of the receipt of new signatures·end'wkat date on whioh the Articles will come into force by virtue of 14 inetitutions having signed.

H. Adoption of the report

17. The Conference adopted the present report before closing in the evening or '13th Auguet 1968.

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ElcN

.14/W./16

Annex

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ANNEX I

OPENING ADDRESS BY LT.-GEN. J.A. ANKRAH,

ow.,

^MC,,-

CHAIRMAN OF THE NATIONAL LIBERATION COUNCIL 1Disti~i8hed Governors, Your Excellenoies,

Ladies and Gentlemen,

It gives me ,:;reat pleasure indeed to welcome.-you, distif.lguis!led Gover- nor-a of African Central Banks, to Accra on behalf' of the_ Qovernment

ani!

-'peopl.e of Ghana. He consider i t a great honour and.a pri Vi:j.ege '·-that -A,he firs-t conference accepted our offer to be hosts to this year's conference.

It is

mw

hope that we shall be able to disoharge our trust to yOUrsatis- faction and to the mutual advantage of us all.

The ideals ,-,hich motivated the first conference and tho subjects that are intended for discussion here are of great signifioanoe to our Qontinent.

I would like to interpret your presence here as a eun-=e:te expression of the need and support for those ideals. I refer in particular to the urgent need for closer economic co-operation among African countries. We in Ghana share this concern and I assure you that we will do everything pos- sible to foster the attainment of this objective. The need for eoonomio oo-operation hae never been greater in the history of our continent than now.

We also believe that we cannot develop closer political co-operation without a corresponding eff~rt in ma~ters relating to inter-African trade and settlemente, and a meaning:'ul harmonization of investment programme.

It is for this reason that we are particularly pleased that the Governments of our sister African countries have lent their active support to this idea.

Already, some of our colleagues have made the start. I am referring to the East African Common Market and the Customs and Economic Union of Central Afrioan States. We support these moves because we believe that they represent concrete ~~d practical steps towards tho realization of the econ.omio potential of our corrtinerrb ,

I understand tha~ among other things, this conferenoe intends to discuss some form of mechanism to faci1i.tate settlements between African states. We believe that the absence of this type of arrangement is one of the major stumbling blocks in the way of economic co-operation on our oontinent. We have no illusions about the problems involved in working out a mutually acceptable scheme; 01'; givsn the corporate will, we cannot but hope that you, distinguished gentlemen, will make the best efforts to- wards this end.

Apart from the major items which you intend to discuss, I would like to t~e this opportunity to underscore the importance of some form of

consultation bet'"een Gcvernors of Africcan Central Danks on whatever basiS,.

formal or informal. This is an area where genuine co-operation in th3 spirit of fair give-and-take can yield mutual advantage to us all. Even

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if such co-operation only hlps us' to understand one another better. we .:

would be making a real eontribution tow,ards f\lture economic, co-operation.

I know you'a.I:e gOing to be vory busy through6i.lt the duration of ':~ this conference.: '! hope, however, that YO\l will' find tiin~ oU'\;side,the ' oonference halls and your hotel rooms, to see ,something o.f the _o~a.ry·

life of our people and our problems, We want you to feel fre.a and'perfectly

at home while you are here. .

On JJW oWnibeha.'tf

!.nd

on behalf of the Government and people of

~~.

I welcome

you'

all to our co\Ultry. I wish you a 'lex;, happy stay i" Clhana and L wish Yf(U every SU<:!¢eBSin YOUI' deliberations;' ' . .

Thankyou.

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E!CN.14!w./16 Annex I I .

ANNEX: II

OPENING ADDRESS BY MR. R.K.A. GARDINER, EXECUTIVE SECREll'ARY OF THE ECONOMIC

COMMISSION FCll. AFRICA

Mr. Ci}a.i.rvla.n and Members of the NLC, La4ies and Gentlemen,

.• .-On behalf of.· the ECA .and on ~ own behalf I am deUghted to wl;l1come.

you ._~o this second conference of African Central Banks. The meetirig that' will be held here in Accra during the next seven ~s represents another ,illiltalment in the efforts'tha.t the Commission has been malting sinca,its

eBta.bl~shm~nt^10'year,s

a,go

to promote inCreased economic co-operation ,among,the African countries,

I need not repeat here the many arguments or deaoribe the circumstances whioh dictate ths necessity for close co-opera.tion among African'countriee in econQmic matters. Suffice it to s~ that all African countries without 8;llCeption. stand to gain a great deal in terms ot: the speed, the depth, and thesequrity of their individual national development i f they work together.

Cq~ve~e~,thepriceof a failure to ce-operate will be great.

,c"Inoreased economfc ce-operation entails above all the harmonization'

of the processes of development in the different African countries. BUt

,~he ,products, of development, which is jointly undertaken, have to move from one ,oountry,to the next. The trade of Afrioan countries with each other

i~,ver.y small. Every effort has to be made to ensure that this trade

~and.a.,The Central Banks hold the key to one of the essential elements' in ~ncreaeedtrade and economic contacts between African countries. As the managers of the foreign exchange resources of their respective countries they decide whether financial resources will be provided in' sufficient \ quantity and on such terms as to faoili tate an increaeed volume of trade among· our countries. Since intra-African trade is at present relatively BIlIa1l and is carried out in the face of many administrative and commercial obstaoles the Central Banks have to make a special effort to contribute to ths promotion of this trade. In the EGA we have produced a series of studies, recommendations and proposals during the last ei~ht years. In recent 'Ulonths i thas become possible .to hope that the, Central Banks will bring themselves finally to choose among the various options that are avail- able to them and to set on foot effective mechan1sms for facilitating the

p~ent for goods and servioes between their countries.

At

the first conference of African Central Banks which the

EOA

organized

in~ebruary1966 i twas agreed that the member banks would establish a per- manent aellooiation of their own through whioh they can further oo-operation

~Ong them•. An interim committee consisting of reprellentatives of the African Development Bank,·the African Institute of Economic Development and: Planning and. the Economic Commission for Mrica was set up to draw up propO$alS for the statutes of the Association~ The draft artioles' of aeso- oiation

that

were prepared' b.Y the interim committee are before this oon- ferenoe.' I would emphasize that this draft which is based on the views '

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E!CN.l4!AJU./16

Annex I I . Page 2

that were expressed at the first oonferenoe and on the oommunioations that were subsequently sent in by various Af'rican Central :Banks is only an

attempt by the collJllli.Uee to form.ula.te wl1./I.t it oonsidersto be the oonsensus e- of opinion regarding ",hat the association should be and how it should be

organized. I would invite this conference to examine these "proposals

with cOlllplete liberty but with the firm resolve to work out arrangements • to which every member of the conferenoe can subsoribe but whioh it the

same time will make it.possible for the member banks to undertake effective and oonstructive measures of oo-operation. There would be no point in ' establishing an associt.tioI1' if i t oannot bring about eonoreteimcf signif'i- oant steps forward towards inoreased co-operation among our c~tries.

The second, task:' whioh is set before this oonferenoe is to express SOIDe views on the i!Ubstanoe of improving pa,yments 8IIIong the member oOWlti'ies as a means of our promoting their mutual trade. In reoent months, following the repeated declarations which our member oountries have made, at the

OArr and On other oocasions, of their resolve to co-operate more olosely in eoonomio matters the EOA has met with inoreasingly more favourable response in its attempt to' organize this co-operation in, its ..practioal and effeotive detail. Here in West Afrioa the Heads of state have now oom- .mitted their own positions to the CBUse of eoonomicoo-operation. In East

Afrioa a new treaty has reoonetructed the common marketwhioh was left by' the oolonial powers and neighbouring independent African oountries are already disoussing the means of associating themselves with this oommon market so as to build a larger and a more effeotive unit. In North Afrioa the Maghreb countries have already organized politioal and technioal insti- tutions to .promote their oo-operation. In Central Afrioa new initiatives have also been taken to secure greater 'oollaboration in economio matters. ' The Afrioan Central Banks at this meeting are invited to put forward their own suggestions as to how arrangements in the monetar,y field oould best be made to matoh these efforts that are being made in the field of joint development and inoreased trade.

In addition to the studies that have been prepared, in the past by the ECA, oonsul tanta have now also been engaged to listen to your discussions at this oonferenoeand to. draw up fresh studies and proposals for oonsidera- tion• . 1 hope that the disoussions at this meeting on the question of inter- Afrioan pa,yments will be suffioiently practioal and oonstruotive to enable the consultants to know what in the view of the member banks would ~onstitute praotioable and a.oo.eptable arrangements.

The proposals on the organization of the assooiation also include recommendations';lfor the establishment of a technioal seoretariat to oarry on with this work at a future date. We hope in the Eel. tha.t we will soon be able to Jumd over the major part of the research work on tl\is question of increased co-operation among the Afrioan Central:Banks to this organ of the Central Banks themselves. Our interest in the question, of oourse, will not cease and our efforts at promoting eoonomic oo-opera.tion in the, fields of trade .and development will oontinue to impinge on the work~and, the interests of the lloSsooiation, but it is I11:f hope that as in earnllst of . their firm oollJllli.tment to a polioy of increased oo-operation the Central :Banks will, be able to reaoh agreement on these aspects of ,the proposals before the conferenoe. '

,.

. Counta!raYS BURUNDI

Ct1fOO (:JlDl. REP. OJI)

ca;ao (REP. mx. DU)

ErHIOPU/ErRIOPIE

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E/CN.14!ANA!l6 Annex III

ANNEx

^III

"LIST OF PARTICIPANTS LISTE DES PARTICIPANTS

Name/Nom

MONSIEUR B. ICII1fllliCIRA President

Bank of Burundi Bujumbura

MONSIEUR LOUIS NAMliISI Directeur

Banque NationaJe du Congo Kinshasar-Kalina.

MONSIEUR LAMBERT BARUTI Sous-Direoteur

Banque Nationale du COI18O Kinshasa-Kalina.

DR. YAWAND-ifOOSEN MANGASHA Vice-Governor

National Bank of Ethiopia Addis Ababa

MR. J.R. FRIMPONG-AlISAR

Governor Bank of Ghana Accra

MR. J.S. ADDO Deputy Governor Bank of Ghana.

Acora

MR. E.F. ANNO Executive Director Bank of Ghana.

Acera

MR. V.R. ClllVANTE Director of Research Bank of Ghana

Accra

DR. A.K. APPIAH

Principal, Research Department Bank of Ghana

Acera

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Annex III •

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Countr.ylPa,ys GHANA (cont1d)

KENYA

LIBYA/LImE (observer)

MALAWI

MALI

MAURITIUS/n;r, lWJIl.ICE

MCROCCO,/)WWC

Name/Nom

JlR •.

AjOE.K. ASHIAllCE Adviser

. Blink

of Ghana Acora

MR. E.J!. WAMAE General Manager

Central Bank of Kenya Nairobi

MR⁰ K.S. SHERLA,LA Direotor

Research Division

Bank of Libya Tripoli

J!R. S. ETTIR

Economio Research Offioer Bank of Libya

Tripoli

MR. D.J. HOLT General Jlanager

Reserve Bank of Malawi Blantyre

MR. F. MAMBIYA

Asst. Banking lIanager Reserve Bank of Kalawi Blantyre

MONSIEUR AMADeU DIARRA Direoteur General AdjOint

Banque du Mali llamako

MR. AUNAUl'H BEEJADHIJR Governor

Bank of Mauritius Port Louis

MR. MOHAMED BOUARFA Direoteur

Bank of Morocoo Rabat

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CountrY/Pays NIGmIA

sOMAT,u/sOKALIE

SUDANISOTJDAN

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E/CN~141AlIJ./'J.6

Annex

III Page 3

Na1I1e/Nom

MR. A.E. EKUKINAM

Director of Research Central Bank of Nigeria Lagos

MR. S.D. OOUNDARE

Senior Assistant Economist Central Bank of Nigeria Lagos

MONSIEUR JEAN

:anuRA

Vice Gouverneur

Banque Nationale~du Rwlllida

Kigali

MR. SAMUEL L. BANGURA Deputy Governor

Bank of Sierra Leone Freetown

MR. CHRISTIAN J. SMITH General Manager,

Bank of Sierra Leone Freetown

MR. S.R. DIXON-FYLE Director of Research

Bank of Sierra Leone Freetown

MR. SAID MOHABD ALI Deputy Manager

Somali National Bank

Mogadiscio

MR. ADAN OME:R BLAYEH:

Offioer

Somali National Bank Mogadiscio

MR. AWAD ABDELIlAGID Vioe-Governor

Bank of Sudan Khartoum

MR. B.A. MOUAL Ambassador of Sudan Sudan Elnbassy

Acora, Ghana

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coun1njpa,y8

UAR/RAU

UGANDA jOOGAlfDA

Name/Nom

MR. E.A.K. MWANJISI Manager (Admin.) Bank of Tanzania Dar-es-Salaam DR. H. MANSOUR Deputy Direotor Research Department Central Bank of Egypt Ca.iro

MR. J .M. MUBIRU Governor

Bank of Uganda Kampala.

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OOEAEC

:BCEAO

OBSERVliRS OllSntVATEURS

A:DB/BAD

IDEP

UNDP/PmJD

MR. TAlol4LE Bank of Uganda Kampala.

MONSIEUR BmNARD VINAl Directeur

Banque Centrale des Etate de l '

1tAfrique Equatoriale et du Cwneroun

Paris

MONSTh'lJR PIERRE SANNER

DiracteUX"

Departement de 180 Recherche Banque Centrale des Etats de

l'Afrique de 1 'D\lest ' Paris

MR. KHOOALI A. ABUBAXR

Assistant Officer, Op~rat1onB

Afrioan Development Bank Abidjan

DR. R. CRA-KWAMI ~A

Professor of Economics IDEE'

Dakar

MR. -KARCEL LATOUR

Resident Representative U.N. Development Programme Acora

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Exeoutive Secre1;ar,y Direotor

Adviser Consultants

Conference Officer

Lia.isoo Officer

E/CN~14/W}16 Annex III

Page ~

~r. R.X.A. Gardiner

~~. Wassel Katabi Mr. Gonaaees~del~Valle

Mr. Obasanmi Olakanpo

Mr. Victor Alipui (Bank of Ghana) Mr. Alhaesan Mohammad.) Bank g£ Ghana

Mr. E.W. ^{Asumang )}

Mr. F.!:. Gadzekpo (.Bank of Ghana)

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E/CrN.14/AIIA/16·

Annex IV

ANNEX IV AGENDA 1. Openill8 of oonference

2. Eleotion of officers 3. Adoption of agenda

4. Association of African Central Banks

Report of the seoond meetill8 of the Joint ADB, IDEP and EGA Interim Committee on the Assooiation of Afrioan Central Banks (Abidjan, 11-18 May 1961);

Examination of the revised draft of the Artioles of Association;

Adoption of final Artioles of Association and establishment of the Assooiation

,

5.

The question of Inter-African^\ P~ents:

^.

African P~ents Union (E/CrN.14/WP.2/4; E/CN.14/AMA/12)

Examination of objeotions to the African P~ents Union (E/CN.14/WP.2/4/Add.l; E/CN.14/AMA/12/Add.l)

'Improved p~ents and economic co-operation in Africa 6. Trainill8' of bank personnel in Africa

1. other business

8. Adoption of the final report

•

f

E/CN.14/l1JI4/lf/ ..

Amlex V

ANNEX V

ARTICLES OF ASSOCIATION The Signatories to these Artioles,

Recognizing the signifioant role to be pla;yed by monetary, banking .lIDd~inanoial institutions in promoting the eoonomio development of the

African region and in fostering financial stabili

Vi

Noting .:that co-operation is necessary among African countries in monetary and financial matters;

Realizing that co-operation among Central Banks in Afrioa is a means of asaJringoontinuous and effeotive oo-ordination of monetary and finan";

.ial polioies among the member countries;

j _F911OWi~the recommendations of the first. Keeting of Governors of . African Centr .Banks which was held in Addis Ababa from 15 to 22 February 1966,to establish an Association of Afrioan Central Bapks oonsisting of Central Banks and, where Central Banks are non-exi.stent, similar monetary institutions, the object of which Association would be to promote oo-ope~

t1OB.in . the monetary, banking and financial sphere in the Afrioan region·

and to assist in the formulation of guid'lines along whioh future agreements between Afrioan oountries can prooeed in these areas;

Have agreed as follows:

I

ARTICLE 1

ESTABLISHMENT OF THE ASSOCIATIOO

I The Association of Afrioan Central Banks (hereinafter called the

"Association") is hereby established and shall operate and be g'overned according to the following provisions.

ARTICLE 2 PURPOSES

.~e purposes of the Association shall be:

1.. To promote oo-opll~ation.in the monetary, banking and finanoial sphare in the African region;

2. To assist in the formulation of guidelines,. along 1Iitlioh agre~ . ments among Afrioan oountries in the monetary and. financial -fields shall proceed;

E/CIf.14/AKA/l6·

Annex V

Pap 2

3. To help strengthen all efforts lilimed at bringing about and main- taining monetary and finanoial stability in the Af'riean region;

4. To examine the effeotiveness of international eoonomio and finanoial institutions in whioh Af'rioan oountries have an interest and ~st

wa;(s of pOSSible improvement. .

ARTICLE 3

FUNCTIONS .AND ACTIVITIES

1. For the implementation of its purposes the Association shall have' the following funotions:

,

,

(a)

(b)

(0)

(d)

(e)

To provide for periodio meetings of Governors of Af'rioan Central Banks and, where Central Banks ar. non-existent, the Heads of similaii monetary institutions in the region;

To promote the exchange of ideas and experiences on monetary and banking matters and questions of monetary, blUlking and financial

oo-oper~tion ~n Af'rica;

To facilitate. theoolleption, pooling and dissemination

ot

intolllll&- tion on monetary, banking, finanoial and other economio matters of interest to its members;

To undertake the stud;y of monetary and finanoial problems in the African region, and all such matters as ma;r be deemed neoessary to the maintenance of financial stability or genetally conduoive to greater co-operation among its members;

To organize seminars, courses and other training programmes for personnel of banking and finanoial institutions in the Afripan region;

(f) To provide technical advice and assistance whioh serve its purposes and come within its functions;

(g) To establish stud;y groups and/or institutions and Sub-regional Committees and such other SUbsidiary bodies as it deems appropriate for facilitating the carrying out of. its funotions and activities and the fulfilment of its purposes;

(h) To undertake such other activities and concern itself with _~ . other matters as may advanoe its pUrposes

2. In oarr,ying out its funotions, the Association shall seek to establish and maintain appropriate relations-with..in~tional organizations pursuing . similar or related purposes.

It

•

•

cl/CN.141AMA/16 ,Annex V '

Page 3

AHTICLE 4

MEMBERSHIP AND GEOGRAPHICAL AREA

1. Membership of the Association and its Sub-regional Committees shall be open to all Central Banks in independent African countries and, where Central Banks are non-existent, similar monetary institutions in the

individual countries in the African region.

2. The African region, for the purposes of these Articles shall mean the whole continent of ,Africa, Madagascar, Mauritius and other African islands, or as may be determined by the Assembly of Governors from time to time.

3. Sub-regions for the purpo~es of the Association shall be as defined

qy

the Econcmic Commission for,flSrica, or as may be determined qy the Assembly of Governors from time to time.

4.

Membership in the Association shall be aoquired in accordanoe with the provi'sions of Paragraphs I and,2 of Article

9.

ARTICLE 5

STRUCTURE AND ORGJlIIIZATIO~

1. The ASSDOiation shall have an Assembly of Governors, an Exeoutive Committee

and

Sub-regional Committees.

2. The Assew.bly of Governors shall be the governing body of the Assocra- tioi1 and shall consist of the Governors or Presfdents of Central Banks or Heads of similar monetary instit~t~ons whioh are members of the Assoc~ation.

3. The Assembly of Oovez-nor-a shall elect from among its members the Chair- man and Vice-Chairman of the Association who shall hold offioe for a period of two years, provided however that when any such elected. person ceases to hold office in his Centr91 Bank, his successor shall be deemed to ,be Chairman or Vice-Chairman of the Association.

4. The Chairman of the Associ~tion shall preside over meetings of the Assembly of Governors and the Executive Committee. He shall also'have powers to oonvene meetings of the Assembly and the Exeoutive Committee of the AS"lociatioll. In the absenoe of the Chairman the Vice-Chairman shall oarry,out his function~.

5.

The Chairman shall repre8ent the Assooiation in its relations wi~h

Governments and other org~izationo.

6., The Executive Committee shall consist of the Chairman and Vice-Chairman of the Association,,~dthe Chairmen of Sub-regional Committees•

•

,<

, 4 .'

m/cN.l4!JIAA/16

Annex V Page 4

7.

Each Su<o-regional COL~ittee <Bh~l consist of the Governors, Presidents or Heads of member institutions in<the' Sub-region as defined in Artiole

4,

Paragra.ph 3 . ' ,

8.

The Assembly of Governors may provide for a permanent Seor~t~iat.

If it is deci.ded to call upon Ciltherinsti tutions to pro1!ide SeoretaI':i;at services to the Association, the Assembly shall. authori~e the Chairman of the Association to make the neoessary arrangements.

I ' j .

9.

The expensos involved in running the Secretariat and other bodies of the AssocJation shall. be shared aocording to an agreed formula.

ARTICLE 6 HEEll'INGS

1. The Assembly of Governors shall meet at least onoe every

two.

years.

Such meeting shall be known <as the "Regular Meeting of the Association of African Central Banks".

2. The Sub-regional Committees shall meet at least once a year. Such meeting shall be known as the "Regu'lar- Meeting of the Association's Sub- regional Committees".

3. :3rtraordinarymeetings of the Assembly of Governors or tho SUb-regional Commi ttees shall be oalled at any time by the Chail'lll§n of the Association or by the Chairnan of the Sub-regional Committee ooncerned, at the request of a majority of members, after four wecks' notice.

4. The report o~ any Sub-regional Committee meeting shall be presented to the next regular meeting of the Assembly of Governors following the Sub-regional Committee meeting.

5. The quorum of any organ of the Association shall be a simple majority of its membership.

6. The decisions of the Assembly of Governors or of any organ thereof shall, as a rule, be by consensus of opinion of the Governors present,

provided that in matters concerning the running of the Assooiation decisions

~ be 'faken by a two-thirds majority of the Governors present except as provided for in Paragraph

9

of Article 5 and in Paragraphs

9

<and 10 of this Article.

7.

Each Regular Meeting of the AS8ociation will dete~ the time, venue and servioing arrangements for the next meeting. Similarly, at each regular' meeting of a. Sub-regional Committee, such Committee will determine the time, venue and servicing arra.'1gements for the next meeting.

•

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EJel.14/wA6 .

Annex V .

Page 5

,8.. ,. The'·!ssemblyof Govemors,'ths Ex6outi"eCoulad,ttee and the SU~:regiona1 . Committees lIla3'adopt such l"Ulss andI'e8ula:U~ns ..all ma.Y be' neoessa17~r ,: ..'

appropriate to oonduot' the business of the ASBoci~tiqn, provided,that ~b

l"Ules and regulations adopted b,y the'Exeoutive Committee and the Sub- regional Committees shall not be inconsistent~ith.the. rules adopted b,y . the "Assembly of Governors. . .' .

9.

The expenses involved in running meetings of' the Association, the Exsoutive Committee, and any other Committees of the Association shall be

Bhared equally among the members•.

10. The expenses involved in running meetings of the Sub-regional Committees or lIUbsidilWY bodies thereto shall be shared according toa foi'mula ElgX'eed_.

~.. ^" " ,'" ^{' ' , ' ' . ' . . '}

upon b,y tna .members eonoemed. ' . . .

" ,.'.' " , .

ARTICLE 7 AMENDMENTS

These Artieles IIla3 be amanded, or added to at a meeting of' the Associa- tion b,y a majority of tw'c>-thirds of the members of the Association, provided that notioe of suoh amendment is given to members at least three montlUl . 1let'br&' the' meeting at whioh the aroendment, is "to be. put. Governors ..l1o:.~a;re

not present at this meeting'mll3 signify their votes in writing or b,y pro:Q'.

ARTICLE 8

SI(al'ATURE AND DEPOSIT

1. These Articles, deposited with the Executive Seoretary of' the United Nations Economio Commission for Afrioa (hereinaftercal.led the DepositlWY) shall rSlll8in open until 31st Deceniber- 1968 . for signature by the Institutions listed in Appendix

'A'.

2. The DepositlWY shall oommunioatecertified COpiEll! .of theee Artioles to all the Signatories.

" ARTICui

9

ACCEPTANCE; ACQUISITION'

AND'

w:frHnlu.wAL OF M;EMBERSHIP ..

1. These Artioles shall be subject to acoeptanoeu,rmembers who shall signify their acceptarto,j"by signing the oriii,naJ. oopY of these Artioles deposited with the Deposi~aryor u,r depositing instl'Ulllents of' acosptanoe with the Depositary'berore'3lst:~ember,1968~'The Depositary shall notifY each signature or deposit an~ the date thereof' to ths other Signatories.

E/gN.14/AJ#.fl6

Annex V' Page 6

2. Institutions which, do not acquire memb~rship'inacoordance with the provisions of Paragraph'l of this Artic,le, ma.vbecome members after the Articles have entered 'into force by accession thereto on such terms as the Assembly of Governors shall detern:.:'r.".

3. Any member of the Association ma.v wi thdraw,provided it makes known its decision to the Chairman of the Association and the Depositar,y.

ARTICLE 10 ENTRY INTO FOOCE

,These Artioles shall enter into force upon the aAceptance by fo)U'teen.

of the Institutions listed in Appendix 'A'. 'The Depositar,y shall notify all the Signatories to the Articles of the date pn whioh they oome into force.

ARTICLE 11

FmST

MEEll'nm

OF THE ASSOCI,ATlOO'

1.· The Association shall hold its first meeting- pE\fore '31st December 1969.

The, ll\eeti~ 'shall be convened by the Deposi tar,y.

2. Measures shall be taken at such meeting with regard to the organization and establishment of the different Organs of the Association.

DONE IN ACCRA, GHANA, THIS 13TH DAY OF AUGUST 1968 in a single oopy in the English and French languages both of whioh are equally valid.

Banque Centrale d'Algerie

Banque de la Republique du Burundi

Banque Nationale du Congo (Kinshasa)

'Banque Centrale des Etats de l'Afrique de l'Ouest

,

,

Banque Centrale des Etats de l ' Afrique Equatoriale et du Cameroun

National Bank of Ethiopia

The Gambia Currenoy Board

Bank of Ghana

Banque Centrale de La Republique de Guinee

Central Bank of Ken;ya

Treasur,y of the Government of Liberia

Bank of Libya

Institut d'Emission Malgache

Reserve Bank of Malawi

Banque Centrale de 1a Republique du Mali

Bank of Mauritius

Banque du Maroo

E/CN.14/»I~/1.f)

..

Annex v .

Page 1

Central Bank of Nigeri<l

The Central Bank of Egypt

Banque N<ltionale du Rwanda

Bank of Sierra Leone

Somali National Bank

Bank of Sudan

Bank of Tanzania

Banque Centrale de Tunisie

Bank of Uganda

<

Bank of Zambia

\

,

1

INSTITUl'IONS - INSTITlJ1'I<R3 FINANCIERl!S Banque Centrale d'Algerie

2. Banque de La Republique du Burundi 3. Banque Nationa1e du Congo (Kinsha.aa.)

Banque Oentrale des Etate de l'Afrique de l'Ouest

5.

6.

8.

10.

11.

12.

13.

15.

J6.

17.

18.

Banque Centrale des Etats de 1 'Afrique Equatoria.le at du OameroWl\

Na'tional Bank of Ethiopia The Gambia Currency Board Bank of Ghana

Banque Centrale de la Republique de Guinea Central Bank of Kenya

Treasur,y of the Government of Liberia Bank of Libya

Inetitut d'~ssionMalgache Reserve Bank of Malawi

Banque Centrale de la Repllblique du Mali

~~ of Mauritius Banque do> Maroc

Central Bank of Nigeria 19. The Oentral Bank of Egypt 20. Banque llationale du Rwanda 21. Bank of Sierra Leone

22.

Somali National Bank

23.

^{Bank of Sudan}

24.

^Bank of Tanzania

25.

llanque Centrale de Tunisie

26.- Bank of Uganda

27. ^Bank of Z~mbia