In a bid to reduce inter-country transaction costs and exchange rate volatility, the Association of African Central Banks Governors has fixed 2021 for the commencement of the African Central Bank.

 The decision was contained in a draft framework, which is being considered by the committee.

 The move, according to the association, will also help to entrench macro-economic stability, ensure cross-border comparison of prices of goods and services as well as enhanced political solidarity through shared vision of prosperity.

Other benefits of the ACB, according to the draft framework, are to strengthen monetary transmission mechanism and reduce cost of borrowing, ensure foreign exchange savings and wider access to markets.

 The framework, however, listed loss of sovereignty to a supranational body in the conduct of monetary and exchange rate policies, economic without political union as well as possibility of revenue loss from common external tariff as some of the economic cost of the bank.

To ensure the smooth take-off of the bank, the association on Monday began a three-day joint strategy meeting to consider the draft document for its operation.

 Speaking at the meeting, the Co-chairman of the association, Dr. Rene N’ Guettia Kouassi, said that once the draft document was approved by the association, the final proposal would be submitted to the General Assembly of the Central Bank governors in August.

Source: Punch/Ifeanyi Onuba