Participation in currency unions has helped to enhance the autonomy of central banks both in advanced economies and developing countries, says Kingsley Maghalu, deputy governor of the Nigerian central bank.
Speaking at the South African Reserve Bank's 90th anniversary celebrations on Friday, Maghalu said: "Participation in a currency union had been beneficial to the development of financial markets, which in turn had been a prerequisite for the elimination of direct central bank credit to government."
The major challenge for central banks was the need to further increase their political autonomy, Maghalu noted.
He said political independence related to issues such as how a central bank governor was appointed, how the board of a central bank was appointed, and the terms of reference of the board.
"Though the goals of monetary policy are expected to be established by the political authorities, the conduct of monetary policy in pursuit of those goals should be free of political control," he said.
Michael Mukete, assistant governor of the bank of Namibia, spoke about the changing role of central banks. The role of central banks, he said, should include the promotion of financial inclusion, but should not undermine the banks' primary roles of promoting price and financial stability.
"Financial inclusion has emerged as an important agenda in ensuring sustainable long-term economic growth," Mukete said.
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