Lusaka: MOZAMBIQUE, Zambia and Malawi have signed a Memorandum of Understanding (MOU) to use their respective local currencies across borders.
Zamia Central Bank governor Denny Kalyalya said plans are afoot to sign a similar MOU with Angola.
“We have signed a Memorandum of Understanding between our two central banks, [Zambia and] Malawi to try and use the local currency across the border as well as Mozambique, we are in the process of doing the same with Angola,” Kalyala is quoted saying by local media.
“But overall as Southern African Development Community (SADC) region, we have a platform now which we have established as central banks to use our national currencies to reduce the amount of pressure that we see of using the dollar, Euro and Pound.”
Mozambique, Zambia and Malawi have been negotiating to use a single currency or alternatively to use etheir local currencies across borders.
This comes as the SADC Payment Systems Steering Committee is pushing for the approval by heads of states, of a system that would allow the settlement of payment transactions in a central location based on a single currency.
Source: AllnetAfrica/Lusaka Times
