AfDB Proposes Critical Minerals-backed Currency for African Countries
The African Development Bank (AFDB) has proposed a proposal to provide a new “gold standard” currency arrangement by key African minerals such as cobalt, copper, lithium and manganese. Although Africa has about 30% of global key mineral reserves, it attracts only a small percentage of global energy and green investment, the AFDB notes. To address this difference, AFDB proposes a “non-circulating” currency called the African Unit of Account (AUA). The currency will be fixed in a critical mineral reservoir, with each member state having pre-approved mineral reserves. Each country will then convert its local currency at an agreed rate based on its contribution. Meanwhile, the revenue from local electricity sales will be deposited into designated settlement agents, and the equivalent minerals will be sold in US dollars and the investment attracted by the plan will be paid off.
source: Reuters
