The AU Summit has approved the formation of the African Monetary Fund, AMF, which will be based in Yaounde, Cameroon.
The AU Commissioner for Economic Affairs, Anthony Maruping, reportedly told journalists in Malabo on 30 June that the Fund would work to correct balances of payment positions across Africa.
He said such positions were mainly caused by low export of commodities and high import volumes which exerted a negative burden on currency stability. The AMF would be established to basically help to tackle macro-economic matters in Africa, he added.
The commissioner said, “It is not true that there has been an economic leadership gap in Africa. We are creating an African institution because the UN Economic Commission for Africa is a global body.” Mr. Maruping said the Fund was expected to create proper lending systems in Africa to correct imbalances in payments within the continent and ensure exchange rate stability.
“It will also work towards African currency convertibility, ensuring that currencies across Africa can be exchangeable. The Fund will promote monetary co-operation on the continent and speed up economic development. To achieve these objectives, the Fund will design formulas to lower the debt burden and other debt management policies in Africa and facilitate development of the African financial markets,” he said.
The AU official said the Fund would have an authorised share capital of USD 100 per share. The paid up share capital would be at least 50% of the callable share capital, approximately USD 5.66bn denominated in USD 100, he added.