Economic and monetary union

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An economic and monetary union is a single market with a common currency. It is to be distinguished from a mere currency union (e.g. the Latin Monetary Union in the 1800s), which does not involve a single market. This is the fifth stage of economic integration. EMU is established through a currency-related trade pact.

Contents 1 Existing economic and monetary unions 1.1 De facto monetary unions 2 Planned monetary unions 2.1 Proposed monetary unions 3 Previous monetary unions 4 References 5 External links

[edit] Existing economic and monetary unions

• The CFA franc BEAC is used by Cameroon, the Central African Republic, Chad, the Republic of the Congo, Equatorial Guinea and Gabon and is issued by the Communauté Économique et Monétaire de l'Afrique Centrale (CEMAC), i.e. the Economic and Monetary Community of Central Africa.
• The CFA franc BCEAO is used by Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo and is issued by the Union Économique et Monétaire Ouest Africaine (UEMOA), i.e. the West African Economic and Monetary Union.
• The CFP franc is used by French Polynesia, New Caledonia, and Wallis and Futuna and is issued by the Institut d'émission d'outre-mer (IEOM), i.e. the Overseas Issuing Institute.
• The East Caribbean dollar is used by Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines and is issued by the Eastern Caribbean Currency Union of the Organisation of Eastern Caribbean States (OECS).
• The euro is used by sixteen European Union member states: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain and is also used in Monaco, San Marino, and the Vatican City which are licensed to issue and use the euro. Agreements were also concluded for two overseas territories of France. Saint-Pierre-et-Miquelon off the coast of Canada, and Mayotte in the Indian Ocean are outside the EMU but have been allowed to use the euro as their currency. They are, however, not allowed to mint any of their own coins. Finally, three other countries and one subnational entity use the euro but are not licensed to issue any euro coins or notes, Akrotiri and Dhekelia, Andorra, Montenegro and Kosovo. (See de facto monetary unions below for these territories). The euro is issued by the European Central Bank.

[edit] De facto monetary unions

• The Armenian dram is used as legal tender in both Armenia and the self-declared independent Nagorno-Karabakh Republic.
• The Australian dollar is used by Australia, Kiribati, Nauru, and Tuvalu.
• The British Pound Sterling is used by the United Kingdom, the Crown Dependencies, the British Antarctic Territory, the British Indian Ocean Territory (alongside the United States dollar), Gibraltar, Saint Helena and South Georgia and the South Sandwich Islands.
• In the countries of Brunei and Singapore, the Brunei dollar and the Singapore dollar are legal tender in both countries.
• The euro is used as legal tender in Andorra, Kosovo and Montenegro although they are not a part of the Eurozone. (Andorra used the French franc and the Spanish peseta prior to the euro transfer, while Montenegro and Kosovo used the German mark.)
• The Hong Kong dollar is legal tender in Hong Kong and accounts for the majority of circulation in neighbouring Macau (alongside Macanese pataca which is linked to the Hong Kong dollar nearly at par ^[1]).
• The Indian rupee is legal tender in both India and Bhutan (alongside the ngultrum). It is also freely used as a tender in Nepal, due to primarily the economic flux with India and also the instability caused by that country's civil war.
• The New Zealand dollar is used by New Zealand, Niue, the Cook Islands, Tokelau, and the Pitcairn Islands.
• The Palestinian territories under the control of the Palestinian National Authority use the Israeli new shekel and Jordanian dinar (the latter in the West Bank only).
• The Russian ruble is used in Russia and the de facto independent republics of Abkhazia and South Ossetia.
• The South African rand is legal tender in South Africa, Swaziland, Lesotho, and Namibia through the Common Monetary Area.
• The Swiss franc is legal tender in Switzerland and Liechtenstein.
• The Turkish new lira is legal tender in both Turkey and in Turkish Republic of Northern Cyprus.
• The United States dollar is used by the United States and its possessions, Palau, Micronesia, the Marshall Islands, Panama (alongside the Panamanian balboa), Ecuador, El Salvador, Timor-Leste, the British Virgin Islands and the Turks and Caicos Islands.

[edit] Planned monetary unions

• East African Community (EAC) with the proposed currency being named the East African shilling and to be used by the future East African Federation.
• The SUCRE (currency) is to become the new regional currency of the Alternativa Bolivariana para las Américas (ALBA). The currency will begin in 2010 as an electronic currency involving Bolivia, Cuba and Nicaragua. The leader of Venezuela Hugo Chavez hopes that more nations of Latin America and the Caribbean will join the oil-backed currency.
• Gulf Cooperation Council (GCC), originally planned to be introduced in 2010 with the proposed name of the Khaleeji, but recently postponed due to the financial crisis.
• Caribbean Single Market and Economy (CSME) (as part of the CARICOM) due between 2010 and 2015.
• Southern African Development Community/Southern African Customs Union (SADC)/(SACU), due in 2016.
• South Asian Association for Regional Cooperation, due 2016
• Union of South American Nations (Unasur/Unasul), due in 2019. Ecuador's President Rafael Correa on December 15, 2007 proposed to call the currency the "Latino."
• West African Monetary Zone inside Economic Community of West African States (ECOWAS) with the proposed currency being named the Eco, planned to be introduced in 2020.
• Common Market for Eastern and Southern Africa, due in 2025.
• African Economic Community due in 2028.

[edit] Proposed monetary unions

• Asian Currency Unit, between ASEAN, China, Japan, and South Korea
• between Canada, the United States and Mexico to a North American currency union known as the Amero
• between Australia, New Zealand and Papua New Guinea^{[citation needed]}
• African Central Bank, proposed central bank for the African Union
• Eco, another attempt at an African common currency, within the ECOWAS community.
• Khaleeji (currency), another attempt at a common currency, within the Arab community

[edit] Previous monetary unions

• between Bahrain and Abu Dhabi using the Bahraini dinar
• between Bahrain, Kuwait, Oman, Qatar and the Trucial States, using the Gulf rupee from 1959 until 1966
• between Aden and South Arabia, Bahrain, Kenya, Kuwait, Oman, Qatar, British Somaliland, the Trucial States, Uganda, Zanzibar and British India (later independent India) using the Indian rupee
• Belgium-Luxembourg Monetary Union (1922-2002), superseded by the European EMU
• between British India and the Straits Settlements (1837-1867) using the Indian rupee
• between Czech Republic and Slovakia (briefly from January 1, 1993 to February 8, 1993) using the Czechoslovak koruna
• between Ethiopia and Eritrea using the Ethiopian birr
• between France, Monaco, and Andorra using the French franc
• between the Eastern Caribbean, Barbados, Trinidad and Tobago and British Guiana using the Eastern Caribbean dollar
• between Italy, Vatican City, and San Marino using the Italian lira
• between Ireland, and the United Kingdom using the Pound Sterling (Ireland used its own coins/banknotes of equivalent value) dissolved in 1979 when Ireland joined the European Monetary System without Britain
• between Jamaica and the Cayman Islands using the Jamaican pound and later Jamaican dollar
• between Kenya, Uganda and Zanzibar using the East African rupee
• between Kenya, Uganda and Zanzibar (and later Tanganyika) using the East African florin
• between Kenya, Tanganyika and Zanzibar (later merged as Tanzania), Uganda, South Arabia, British Somaliland and Italian Somaliland using the East African shilling
• Latin Monetary Union (1865-1927), initially between France, Belgium, Italy and Switzerland, and later involving Greece, Spain and other countries.
• between Liberia and the United States using the United States dollar
• between Mauritius and Seychelles using the Mauritian rupee
• between Nigeria, the Gambia, Sierra Leone, the Gold Coast and Liberia using the British West African pound
• North German thaler (basically the Prussian thaler)
• Ruble zone countries
• between Qatar and all the emirates of the UAE, except Abu Dhabi using the Qatari and Dubai riyal
• between Saudi Arabia and Qatar using the Saudi riyal
• between Samoa and New Zealand using the New Zealand pound
• between Denmark, Norway and Sweden in the Scandinavian Monetary Union
• between the Solomon Islands, Papua New Guinea and Australia using the Australian dollar
• South German guilder
• between Spain and Andorra using the Spanish peseta
• between Brunei, Malaysia, and Singapore - 1953-1967
• between South Africa and Botswana, using the South African rand from 1966 until 1976
• between Egypt and Sudan using the Egyptian pound - until 1956
• between West Germany and East Germany between 1 July 1990 and 3 October 1990, as part of a temporary Monetary, Economic and Social Union prior to German reunification.
• proposed Pan-American monetary union - abandoned in the form proposed by Argentina
• proposed monetary union between the United Kingdom and Norway using the pound sterling during the late 1940s and early 1950s

[edit] References

[edit] External links

African monetary union inches closer	United States of Southern Africa?
East Africa's first steps towards union	West Africa opts for currency union
Gulf States push for single currency	'Limited gains' from Gulf single currency
Do the Mercosur Countries Form an Optimum Currency Area?	Argentina plans monetary union
Quadrant Magazine article on the Pacific	Economist- Antipodean currencies (Australia and New Zealand)
Three Perspectives on an Australasian Monetary Union	Reasons for the collapse of the Rouble Zone
In Search of the "Ruble Zone"	OECD Development Centre- the Rand Zone
A single African currency in our time?	South Africa proposes adoption of the rand as provisional SADC common currency
Economic and Monetary Union, EMU – on the euabc.com website