Abstract/Summary

This brief article critically examines the viability of the African Central Bank (ACB) as an institution, charged with the responsibility of promoting regional monetary cooperation. At its core, the article examines the likely challenges that the institution may face and considers how best it may realise its key objectives. The European Central Bank (ECB) is examined as a successful example of an institutional template that may guide some of the policies of the proposed ACB. The paper concludes that the ACB may be susceptible to legal, economical and institutional challenges, if certain structural and regulatory strategies are not prioritized. In order to foretell any institutional stopgaps in the operations of the ACB, the paper takes a schematic look from aspects of the practice of the ECB to draw lessons. The paper admits that while both regional banks have similar mandates, the surrounding markets in both regions present contrasting capabilities. However, there remain practical lessons which the ACB must learn in order to start off on a sure footing.