The economic activities of the Multilateral Monetary Zone (MMA) are micro-managed by the monetary policy of the South African Reserve Bank and the monetary stability of the Member States is limited to SACU customs revenues, which are deposited by each Member State in the South Africa National Revenue Fund and distributed to Member States according to an agreed formula. The monetary agreement between these countries is one of the most important themes of the agreement. As has already been established, each country has the right to have its own national currency. These currencies are legal tender only in their own countries. However, the South African rand is the subject of a CMA-wide tender. The signatories were South Africa, Lesotho and Swaziland. The CMA has been replaced since 1992 by the current Multilateral Monetary Zone (MMA), when Namibia officially joined the Monetary Union. 1974, in rand monetary area (RMA) – Rand`s currency area. Developed in Common Monetary Area (CMA) — Common Currency Area, 1986, with South Africa, Lesotho and Swaziland as signatories. The current title was adopted in February 1992, when Namibia joined the Monetary Union. Under the agreement, CMA countries can access South African financial markets, but under certain conditions.
They can only access money and capital markets through compulsory investments or authorized securities that may be held by financial institutions in South Africa in accordance with prudential rules between LNS countries. The currencies of these countries are exchanged at the margin level. Exchange rate regulation and monetary policy across the CMA continue to reflect the influence of the South African Reserve Bank on monetary policy in the rest of the CMA. The context and legal challenges Zimbabwe cannot simply enter marginal monetary union without addressing monumental legal challenges. It is impossible for the country to unilaterally take the margin without violating the agreement that binds the Member States on the periphery of the Union in the form of a 1974 pact, which was signed as the basis for the constitution of the Common Market Area Agreement (CMA). Well, that is not true, because, in terms of exchange rates, marginal monetary union or, say, the multilateral monetary zone refers to the national currencies of the Member States, which are only equally linked to the margin or monetary stability of the stability of the Member States and designed for a single monetary policy. The Common Monetary Area (CMA) links South Africa, Namibia, Lesotho and Eswatini to a monetary union. It is allied with the Southern African Customs Union (SACU). Under bilateral agreements between Lesotho and South Africa and Namibia, the central banks of Lesotho and Namibia are required to settle foreign exchange reserves at least on the total amount of local currencies they issue.
These reserves may include the Central Bank`s assets on marginal balances, the marginal currency held by the Central Bank in a special-margin deposit account with SARB, the assets of the South African state (up to a certain share of total reserves) and investments in the Corporation for Public Deposit in South Africa.